TL Logistics Software – What Are Its Advantages?

If your company ships enough goods to qualify for full truckload (TL) shipping, you may think that your shipping situation can’t be improved. After all, TL shipping offers the advantage of shipping goods directly to their destination without the hassle and expense of warehouse stops. Yet, because the cost of shipping also includes the cost of the logistics function, companies should also question whether their logistics source is working for or against their shipping process in terms of cost.

Traditionally, companies either hire an in house logistic expert or outsource their logistics needs to a third party logistics (3PL) provider, either of which can be too expensive for smaller companies, especially when they need a comprehensive approach to the TL (truckload) shipping process. Today, however, companies have the option of implementing affordable TL logistics software instead of hiring an expert or outsourcing to a 3PL provider.

TL logistics software is geared toward companies that need TL shipping arrangements (i.e. where a carrier transports full semi trailers of goods on a regular basis). After implementing the software, a company selects its TL shipping arrangements from among ranked TL solutions that are presented on a user-friendly interface. When a company implements logistics software, it essentially becomes its own logistics provider, which brings three basic advantages: a wider range of shipping options; the possibility of integrated shipping solutions; and the removal of the middleman (3PL) from the logistics function. After implementing logistics software, studies show that companies lower their shipping cost by 10 percent within the first year alone.

To understand how logistics software achieves its impact, it helps to understand how companies overpay for logistics when they an in house expert or contract with a 3PL provider. When a company hires an experienced logistics expert, it can expect to pay between $75,000 and $90,000 in annual salary. Also, the shipping arrangements devised by the expert, although well researched, rarely result from the consideration of all possible shipping arrangements-a task that logistics software can perform in a matter of minutes.

Similar to hiring an expert, hiring a 3PL provider brings unnecessary cost from the beginning. And unless the provider is customer developer, which manages a company’s shipping process while developing new shipping solutions-the prospect of TL shipping being integrated with other shipping solutions (e.g. air and rail) is remote at best. Although 3PL has long been the logistics option for companies that don’t have logistics departments, that TL logistics software performs the work of a 3PL, except with better results, makes it the superior choice.

TL Logistics Software – Frequently Asked Questions

If you own a growing manufacturing company, chances are that your shipping needs will eventually change. But that doesn’t mean that the shipping process has to become more complex. In fact, producing more goods can actually make shipping simpler, as can be seen in truckload (TL) shipping, where a company ships a full semi trailer of products direct to destination. To arrive at the best TL shipping solutions, companies have three options: hire an in house logistics expert, outsource to a 3PL provider, or implement TL logistics software-also known as full truckload logistics software-which allows companies to become their own logistics provider. Below, we answer some commonly asked questions about a logistics solution that’s quickly becoming preferred to the more expensive, less flexible options or hiring in house experts or 3PL: truckload logistics-software.

What Aspects of the Shipping Process Does the Software Address?

Logistics software addresses the same aspects of the shipping process that a logistics expert or 3PL provider would address, including route analysis and optimization, and freight optimization. However, unlike a logistic expert, it doesn’t require a $70,000-$90,000 salary to do its work; and, unlike most 3PL providers, the range of shipping options it presents are as broad as possible.

Do You Need Logistics Expertise to Operate the Software?

One of the biggest misconceptions of logistics software in general is that it requires logistical expertise of its user. When you use logistics software, the software serves as the logistics expert, presenting numerous ranked shipping options and allowing you to choose by accessing a user-friendly interface. The goal of logistics software is to cut the middleman out of the logistic function, and it does this by doing the work for you.

How is the Software Implemented?

Most providers of logistics-software offer it on both a software as a service (SaaS) model and as an internal software solution. In either case, the software is tailored to seamlessly integrate with a company’s current shipping process, and can be easily modified when shipping needs change. In the case of internal software, the provider can usually install the software and the hardware necessary to support it.

How Much Does the Software Cost and How Much Does it Save?

The cost of logistics-software varies widely according to two factors: whether it is implemented internally (more expensive) or as a SaaS solution (less expensive), and the range of logistic options required. However, either solution is less expensive than hiring a logistic expert or contracting with a 3PL provider. Concerning cost savings, research shows that companies who implement the software can reduce their total annual shipping cost by 10 percent in the first year alone.

TL Logistics Software Streamlines the Truckload Shipping Process

Truckload (TL) shipping generally refers to the transportation of an amount of cargo that is enough to fill an entire semi-trailer. Unlike less than truckload (LTL) shipping, where carriers take partial loads from two or more shippers, combining them into a full load and dividing the load price, companies that perform TL shipping contract an entire load to a single shipper. While LTL shipping can present attractive pricing options for small to midsized companies that regularly ship less than a full truckload of products, the basic advantage TL shipping over LTL shipping is that the freight is never touched en route to its destination. LTL shipments are commonly handled multiple times en route. While truck load shipping is a more simplistic shipping process than less than truckload shipping, companies that use LTL shipping can still benefit from using TL logistics software to arrive at the best shipping solutions.

TL logistics-software is a particular form of truckload logistics software that helps companies optimize their freight and shipping routes to realize the most cost effective TL shipping solutions. In lieu of logistics-software, companies that don’t have their own shipping fleet or employ logistics professionals usually hire third party logistics (3PL) providers. However, for companies that need to save as much as possible on the shipping process, logistics-software is a more cost effective logistics solution than outsourcing to a 3PL provider for two reasons: it allows companies greater leverage in the shipping process and it removes the need to pay a middleman to dialogue with carriers. When companies implement logistics software, they essentially go from outsourcing their logistics to being their own logistics provider, using an easy to use user interface that’s customized to their company’s particular shipping needs.

Logistics software can be customized in accordance with a variety of shipping concerns, but freight optimization and route optimization two aspects of truckload shipping that logistics software applies to in all cases. Freight optimization deals with a variety of freight concerns, including freight size and volume, packaging and composition, all of which affect the cost of shipping. To put it simply, truckload logistics-software is used to find a carrier that offers the best price in relation to the combined factors of freight optimization. Similarly, logistics-software gives companies the ability find the best shipping routes based on various criteria, including: shortest distance, construction patterns, traffic patterns and road surface quality. By performing freight optimization and route optimization, logistics-software presents companies significantly reduce their shipping costs while improving their delivery time. According to recent studies, companies that implement logistics-software can reduce their shipping costs by 10 percent at the end of one year.

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