Logistics Software Allows Shippers to Conduct Their Own Freight Optimization

If you plan on starting a manufacturing business or currently own a manufacturing business that needs new shipping solutions, a critical part of maximizing your bottom line will be arriving at shipping solutions that offer the best delivery result at the lowest cost. To arrive at such solutions, shipping companies have three basic options: they can hire an in house logistics team; they can outsource their logistics to third party logistics (3PL) providers; or they can implement logistics software. For small to midsized companies, the cost of hiring in house professionals is often prohibitive, leading them to outsource their logistics.

But before you outsource logistics, its important to know that most 3PL providers adhere to rigid shipping heuristics, making them a poor choice for companies that want innovative shipping solutions. Logistics software, on the other hand, allows companies to realize innovative shipping solutions on their own. By accessing a user-friendly interface, companies can conduct freight optimization without possessing logistics expertise. When you implement logistics software, the software acts as a logistics expert and guides you through the phases of the freight optimization process, which we describe below.

Channel Selection and Development

Channel selection and development begins with identifying shipping channels that have strong matching potential to your companies shipping needs according to various criteria, including: freight volume, shape of freight and freight destination. After performing channel selection, logistics software aids shippers in identifying and enlisting carrier companies that carry a high volume within a company’s ideal shipping channels.

Carrier Selection

Carrier selection commences with identifying and evaluating specific carrier companies. Logistics-software evaluates these companies according to the price and delivery efficiency of their shipping options. Commonly realized shipping options include LTL shipping solutions, TL shipping solutions and a combination of TL and LTL shipping solutions. Carrier selection also results in integrated shipping solutions between water, air and land carriers to offer the best shipping price and delivery time.

Transportation Route Design

As a part of the carrier selection process, logistics software allows companies to identify transportation routes that decrease shipping cost and improve delivery time. The transportation route design process entails three basic steps: discovering the fastest routes, discovering carriers that match shipping volume and negotiating rates with carriers and confirming shipping capacity.

Route Execution and Management

After your company has chosen carriers based on shipping route analysis and carrier offerings, logistics-software allows you to perform route execution and management. During the route execution and management process, logistics software offers two essential benefits: it allows you to function as a shipping captain, monitoring your overall shipping network performance; and it allows you to perform customer service and conduct billing and reporting. If you currently outsource your freight optimization needs to a 3PL provider, consider implementing logistics software today. Research shows that companies can reduce their annual shipping costs by 10 percent after the first year of implementing logistics software.

Freight Logistics Software: Frequently Asked Questions

Shippers have three options for managing the shipping process: maintaining an in-house logistics department, outsourcing to a Third Party Logistics (3PL) provider, or implementing freight logistics software. When the objective is to choose the most economical option, most shippers choose the third option for the following reasons:

  • It gives them more control over the shipping process
  • It does not require a staff of transportation management experts
  • It allows them to choose from a broad range of carriers
  • It allows them to perform a freight audit without the help of a third party
  • It allows them to avoid paying high service fees to a third party

If you are considering making logistics software a part of your shipping process, but you need more information, the answers below can help.

How does the product compare to 3PL?

The product compares favorably to Third Party Logistics (3PL). Unlike 3PL, it does not place the logistics function in the hands of a third party. Instead, it allows the shipper to become its own logistics provider by providing resources for executing and managing the shipping process. Consequently, using the product is typically more affordable than outsourcing to a 3PL provider.

Does the product come in different configurations?

The product can be configured to meet the needs of the shipper. For example, while one shipper may need a configuration for Less Than Load (LTL) shipping, another shipper may need a configuration for transportation management. All configurations can facilitate administrative tasks such as a freight audit.

Is the product available on a SaaS model?

Freight logistics software is available on a Software as a Service (SaaS) model. It is also available on an in-house model. Because it eliminates the need to purchase software and perform system maintenance, the SaaS model is typically more affordable than the in-house model.

How long does it take to implement the product?

When the product is configured to accommodate a unique shipping process, it is typically implemented thirty to forty-five days after the initial service request. In most cases, the system is up and running within forty-five days.

How much money can a company save by using the product?

The amount of money a company saves depends on two things: what the product replaces, and how much it lowers shipping cost. Using the product to replace a department of freight auditors can yield a six-figure payroll saving. A similar saving can result from using the product to replace the services of a high-level 3PL provider (e.g. customer developer or customer adapter). In terms of shipping cost, most companies report a ten percent reduction in shipping cost after using the product for one year.

Conclusion

Freight logistics software is an economical solution for shippers who need to save money on shipping logistics and reduce the cost of shipping. In addition to accommodating the needs of unique shipping processes, it also allows shippers to perform ubiquitous administrative tasks such as a freight audit. To learn more about benefits of the product, contact a provider of logistics software today.

How to Improve The Business With Logistics Software

The technological development in each field of the market was soon followed by evolutionary steps of logistics softwares and IT companies. Today there are many software companies that provide the highest quality and friendly software solutions to the Transportation Industry. Their softwares are designed to be industry oriented from the ground up. The industry-oriented approach is reflected by their market focus, products, service offerings, the customer support, and the talent base they employ.

True professional companies always stay on the cutting edge of technology innovations to deliver state-of- the art solutions to their clients. Therefore, if you have an important business to run in the transportation industry, you would better not waste anymore time and purchase at least a lite logistics suite, an affordable, but still a powerful one. Its solutions may include Freight Forwarding Software, Purchase Order Management, Real-Time Online Cargo Tracking, Inventory Control Software, Third-Party Logistics System (3PL), Trucking Software with Cross-Dock and Dispatch, Integrated Accounting Software and many more.

A Freight Forwarding Software, for example, is designed especially for small Freight Forwarders and Warehouse Management Companies. It can handle Ocean Freight, Air Freight along with Warehousing. Newest version releases have taken the request of customers in consideration and added the QuickBooks export support. That means that now you can easily export invoices to QuickBooks, saving time and reducing errors.

A lite suite version will be able to handle all the requirements of a Cargo Warehouse operation including Warehouse Receives, Warehouse Withdraws, Labels, On Hand Reports and Invoices. The Ocean Export and Air Export modules may provide an array of features like Quotes, Bookings, Manifest, Labels, Waybills (Houses, Masters, Directs) and reports that will let you keep track of your company operations at all times.

Still, if you can afford to spend more, there are more powerful softwares that will offer access to cargo status information directly through your company’s internet website, providing your customers with a powerful online shipment tracking tool. Authorized users can search, view and print information in various forms, such as: Warehouse Receipts, House Airwaybills, Master Airwaybills, House Bill of Ladings, Master Bill of Ladings and Cargo Manifest.

A complete featured suite offloads much of the administrative overhead associated with addressing client shipment inquiries, helping you to reduce cost and increase employee productivity. Also agents can enter POD information without having to call your office. They may also keep track of all cargo going to their office.

Usually, the software companies understand how critical it is for their clients to have their logistics software running 100% of the time. That is why they give their support department the higher priority. Any technical support team is committed to provide superior support service, and is available twenty four hours, seven days a week.

The companies’ staffs now understand that today is not only the software, but also the customer support that is critical to the clients. Their goal should be to build a relationship of trust with their customers and that is why 24/7 support is absolutely necessary to be provided. This kind of support can easily be achieved using the technology of the Internet. If one is interested in any of their products or services, he/she should be able to visit a contact page for more information, at least on how to get in touch with them. Also, if a customer has non-time critical issues or just has some questions, an e-mail should be provided for any inquires or an online support request form. Any problem should be resolved within a few hours, if the service is professional.

Think about the advantages of purchasing a logistics software! It will improve your time and experiences in your business area.

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