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.

Vendor Compliance and Truckload Shipping: How Logistics Software Can Help

Is the cost of meeting the vendor compliance standards of large retailers and corporations worth the resulting sales? Perhaps not in the short-term, but in the long-term, complying with complex vendor standards is one of the few ways to turn mediocre product sales into phenomenal sales. Even so, small to midsized manufacturers that aim to meet the standards of large corporations and retailers cam immediately find what seem like insurmountable obstacles in their path, especially concerning standards that regard the shipping process, such as the requirement that companies ship full truckloads-as opposed to less than full truckloads-to a business’s receiving docks.

Vendor Compliance and Truckload Shipping: Can Shipping Logistics Help?

The problem with full truckload shipping-also known as TL shipping-for small to midsized vendors isn’t that they can’t ship less than a full truckload of their products in a full semi trailer; it’s that doing so is cost prohibitive. As a result, small to midsized companies typically turn to less than truckload shipping-also known LTL shipping-in which two or more shippers of partial loads combine their shipments to form a full truckload and split the cost. The general advantage of LTL shipping is its cost effectiveness, while its general disadvantage is its slower delivery time, resulting from numerous pick ups and drop offs.

But LTL can have a more specific drawback concerning vendor compliance and truckload shipping: it could throw a wrench in a business’s well-oiled receiving system, where a full truckload of products comes from a single source and is therefore brings less risk of error during the receiving process. Traditionally, only companies that produce enough goods to fill a full truckload on a regular basis use TL shipping. But today, transportation logistics allows shippers the option of shipping full loads on a schedule more suited to their production output, allowing participation with large buyers of goods.

Method of shipping is one of numerous concerns within a complex set of vendor compliance standards. But it remains one of the toughest standards to meet if you don’t have shipping logistics on your side, a service that companies can secure in one of three ways: by implementing their own logistic department; by contracting with third party logistics (3PL) providers; and by implementing logistics software, which allows you to become your own logistics provider without possessing logistical expertise. Out of the three options, the latter is the least expensive, while still supplying the broad, in-depth approach to logistics a company would receive if it had its own logistic department. To find out more about how logistics software can help your company meet the compliance standards of large corporations and retailers, contact an online provider of logistics software today.

Warehousing Management Software And Getting This Software For Your Warehouse Operations

Any business owner that has to operate a warehouse knows that the process cannot operate efficiently if there isn’t a solid system in place. A solid system enables for every phase of the warehouse operations to be solid as possible.

So all of these warehouses are going to have a system they are using. The only issue is some of them choose not to make upgrades by means of implementing warehousing management software.

Now for smaller businesses, these types of businesses are usually put off by the high cost of having warehousing management software. A lot of them feel it is simply not a wise investment to make.

That might have been the case a long time ago, but now this type of software has been made affordable and easily accessible. Incorporating it into your warehouse management process would not be difficult at all.

Computer technology has advanced greatly over the course of the past few years. This means advanced warehousing management software is available to those who otherwise would not have had access to it before.

Smaller businesses can decide to utilize it by means of very affordable subscription plans. The amount you pay would be dependent on the features you need and or how long you plan on using the software.

Now what would this mean to the average business owner, particularly those who are smaller? This would mean the upfront cost of implementing warehousing management software would be greatly reduced.

This also means a business would not have to worry about hiring someone to help them decipher or implement the software. There will be no need to purchase additional equipment such as computer servers.

And in most cases the warehousing management software you would be utilizing would be completely hosted and maintained by means of the Internet. No need to worry about security or reliability problems either.

The software that is available these days is going to be extremely reliable and is going to be very secure. After all, you would not want to put your warehouse operations in the hands of any product you felt didn’t offer both to the highest degree.

Some of the key advantages to using warehousing management software would include the ability to reduce problems with shipping. Shipping errors cost a lot of money to correct and that can greatly impact the businesses bottom line. The software will give you the ability to greatly increase inventory visibility as well as accuracy.

Whatever carrying costs you have at the moment can be reduced as well. This is going to definitely help you in the long run, particularly in tough economic times.

Warehousing software will also allow you to increase order fulfillment capacity without having to hire additional staff. There are other benefits as well that you can learn about easily since the program can be taught in a relatively short time frame.

This type of logistics software is beneficial, because as a business is trying to grow the software will enable you to make adjustments so that you can scale it to fit your business as it grows.

Whatever requirements you have you do not have to worry about being locked into a specific way of doing things. You can customize certain things in order to meet specific requirements your warehouse operations are going to have moving forward.

Your process for warehousing management might very well be effective, and you can maintain that system. It is just that with using warehousing management software you can integrate the two so things run far more effectively.

If you intend for your business to grow you will need a way to do this no matter what. Start out now and start getting yourself acclimated to using this software for your business.