TL Logistics Management Software – Frequently Asked Questions

What types of Shippers Use TL Logistics Management Software?

In most cases, shipping companies that regularly produce enough products to fill a full semi trailer use truckload logistics software, as “TL” refers to truckload, or full semi trailer. However, it’s important to note that TL logistics software actually refers to a service option within logistics software as a whole. In other words, companies that have less than truckload (LTL) shipping needs and use logistics software to meet them can have a TL logistics option added to their package at a later date, particularly if their software operates on a software as a service (SaaS) model.

Does it Make Sense to Combine LTL and TL Management in the Same Package?

A company can have as many logistics management options within a software package as it wants. But the fact that more options result in higher fees usually deters companies from adding more options than they presently need. However, if a company can benefit from having its LTL shipments combined into TL shipments and transported to a break station, then having LTL and TL shipping options within the same package could be beneficial.

Is it Better to Implement Logistics Software on a SaaS or an Internal Basis?

Although some companies have policies that require software solutions to be implemented on internal basis, most companies receive the greatest benefit from implementing logistics software on a SaaS model. To implement the software on an internal basis, you typically incur the following costs, which are eliminated by SaaS: software purchase, hardware purchase, system maintenance fees and system upgrade costs. In addition, implementing logistics software as a web-based application offers the advantage of letting system users access the system from any Internet terminal worldwide, whereas internal solutions function like an intranet.

Can TL Logistics Management Software Replace the need for a Logistics Expert?

Perhaps the greatest misconception about logistics software is that you need expertise in logistics to use it. On the contrary, logistics-software does the work of a logistics expert, presenting a shipper with optimized shipping options across the entire shipping process. One of the main selling points of logistics-software is the remarkable affordability that it brings to the logistics function, which comes from its replacing the need to hire in house logistics experts or high level third party logistics (3PL) providers.

Isn’t 3PL the Still Best Option If You’d like to Dialogue With a Logistics Expert?

The top complaint of 3PL customers is that they feel kept on the outside of the shipping process due to lack of contact with their 3PL provider. Furthermore, most providers of logistics-software allow their customers the option discussing logistics issues whenever necessary. With logistics software, you essentially become your own logistics provider, which is as close to the logistics function as you can get.

Six Benefits of Implementing a Software-Based Logistics Management Program

A logistics management program-also referred to as a transportation management program-is a comprehensive approach to managing every aspect of the logistics process while developing innovative shipping solutions that save time and money wherever possible. A logistics management program is achieved in one of three ways: hiring a team of in house logistics experts, hiring a third party logistics (3PL) provider or implementing third party logistics software.

Hiring a team of experts is usually too costly for small to midsized companies, and hiring the type of 3PL provider that would implement a comprehensive, innovative logistics management program is usually too costly as well. But implementing logistics software allows companies to develop a comprehensive, innovative management program without the aid of paid professionals. Logistics software does the work of a logistics expert, meaning that its users don’t need to possess logistics expertise. Instead, they use a user-friendly interface to choose from among recommended shipping solutions for every area of the shipping process. Below, we list six benefits that shippers experience after implementing logistics software.

Reduction of Expedited Order Costs

Expedited shipments can significantly drive up the cost of shipping if they occur on a regular basis; and without a comprehensive logistics solution, they typically do. Logistics-software allows shippers to reduce expedited shipments through better shipment planning and system directed exceptions handling, which resolves exceptions before they necessitate an expedited shipment.

Increase of Load Consolidation

Upon implementing logistics-software, shippers immediately realize the ability to consolidate parcel shipments into less than truckload (LTL) shipments, as well the ability to consolidate LTL shipments into truckload (TL) shipments, each of which significantly lessens annual shipping costs.

Automation of Carrier and Mode Selection

When companies automate the selection of the best carrier and the best shipping mode, they save money in terms of both saved time and saved manpower, especially considering that logistics software immediately pairs optimal carrier and optimal mode selection.

Identification of Invoice Discrepancies

Searching for discrepancies in invoices on your own can be tedious and time consuming. But logistics software can instantly compare the audit of a freight invoice against the shipping contract, allowing you to never pay for services that weren’t rendered as promised or that were rendered in violation of the shipping contract.

Tracking of Carrier Performance

Tracking a carrier’s performance can help you negotiate better rates. Logistics software provides information on a carrier prior to your forming a contract with them, which can allow you to receive a lower rate if, for example, a carrier’s promised delivery times average a few minutes or more less than the promised times.

Reduction of Product Breakage

Regardless of the cost effectiveness of shipping routes and load arrangements, a company doesn’t profit from an economical shipping process if its products regularly break en route. Logistics software solves this problem by connecting shippers with carriers that offer the right mixing and stacking strategies for a particular type of freight.

Logistics Software Helps Companies Achieve the Optimal Freight Bid

Whether your company’s success depends on shipping a large amount of goods or a small amount of gods, chances are that your shipping process can benefit from the implementation of logistics management software. Also referred to as freight transportation software, logistics management software uses the power of logistics to increase the delivery time of a company’s products and cut its shipping costs in the process. While logistics software can benefit companies of any size, it remains ideal for small to midsized companies that don’t have the IT infrastructure to support a full scale shipping system and must therefore rely on third party shipping for the delivery of their goods to and from warehouses, to and from manufacturing locations and ultimately to store shelves. By using logistics software, companies can examine the shipping process from a variety of vantage points, including accounting, billing, dispatching, payroll, driver settlements, carrier settlements and shipping route efficiency, allowing them to realize the optimal freight bid.

In addition to the shipping process benefits that logistics software offers companies, perhaps its greatest advantage is that you don’t have to have a background in logistics to understand and operate it. On the contrary, the software comes with an easy to understand user interface that reduces learning curve, and the software can easily be integrated into a company’s already existing transportation procedures. Logistics software can be accessed from any computer location through the Internet and offers a variety of customized modules that allow all employees associated with the shipping process to view the process from their particular vantage point. Some of the module areas commonly offered by logistics software are accounting, customized reporting, scheduling, shipping management, purchasing management, labor management, job management, order management, inventory management, data import and export, cross currency management and labor management.

One scenario where logistics software regularly benefits companies by improving their shipping time and reducing the cost of the shipping process involves warehouse management. In some cases, companies that lack logistical capabilities end up choosing the shortest shipping route in terms of distance without considering the number of warehouse stops that are made along the route. Consequently, their goods take longer to reach their destination than they would have if shipped on a longer route that didn’t contain as many warehouse stops. In addition, more warehouse stops equals increased warehouse fees, and logistics software may discover that the additional fuel charges that result from a longer route are less expansive than the total warehouse fees of the shorter route.

Another scenario where logistics software helps companies improve delivery time and save money involves evaluating alternate means of transportation. Although a company might be used to moving its products by freight, logistics might reveal that it could improve delivery time and saving money by air shipping their products. Although traditionally more expensive than ground shipping; in some situations, air shipping can prove more economical than grounding shipping due to the collective expenses associated with ground shipping routes. Regardless of your company’s current shipping arrangements, examining them using logistics is certain to save you time and money by allowing you to realize the optimal freight bid and/or integrated transportation solutions.