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Instead of Hiring a Logistic Expert, Save Money by Implementing Logistics Software

Posted on September 27, 2017 in Uncategorized

There are two inherent challenges to running a manufacturing business. The first is producing products that will sell. The second is shipping those products to retailers in a timely fashion at an affordable price. If your company has mastered the first challenge but is still searching for the ideal shipping solutions, you may be on the brink of hiring a logistic. When companies hire a logistic expert, they either hire an in house logistics professional or outsource their logistics to a third party logistics provider when their budget prohibits the former. If this describes your company, it’s important to know that, while hiring a 3PL provider may be less expensive than hiring an in house professional, there is a logistics option that costs significantly less than 3PL, and it exists in truckload transportation management software-also known as logistics software.

When companies hear about logistics software, they often think that it requires logistics expertise. But it doesn’t. Logistics experts tailor logistics software to meet a company’s unique shipping needs and allow the company to meet and control those needs through a friendly user interface. There are several reasons why implementing logistics software is more affordable than hiring a 3PL provider, beginning with the fact that logistics software is priced as a software offering and not a consultancy offering. Although the companies that design logistics-software are software companies, they employ freight logistics experts and are run by business veterans of the freight transportation industry. Another reason why logistics software is less expensive than 3PL is that 3PL arrangements typically result in shippers being charged over and above the actual cost of shipping solutions. When non-asset based 3PL providers secure shipping solutions for their clients, they contract with carriers that offer a discounted rate, allowing the 3PL provider to profit from the differential between actual service cost and service cost as charged.

In addition to being more cost effective than 3PL, logistics software also allows companies greater control over their shipping process by providing more shipping options. Most 3PL providers adhere to rigid shipping heuristics to provide clients with shipping options in the shortest amount of time. Consequently, many 3PL clients end up with shipping options that meet their needs but don’t offer the best possible delivery time at the lowest possible price. One example of how logistics software allows shippers to realize more shipping options can be seen in integrated shipping solutions. Whereas asset-based 3PL providers only offer as many shipping modes as they have equipment to support them, logistics-software allows shippers to integrate truck, boat and air shipping over the course of one transportation route. Whether your company’s shipping needs are just emerging or have recently changed, don’t pay more for freight shipping than you need to. By implementing logistics software, you can become your own logistics provider and cut the middleman out of the logistics function.

Logistics Software Solutions – How Do They Compare to Third Party Logistics?

Posted on September 26, 2017 in Uncategorized

Third party logistics (3PL) is the most popular choice for freight logistics among small to midsized companies. In order to help companies that regularly make shipments that are too large to financially benefit from parcel shipping and too small to financially benefit from full truckload (FTL) shipping, companies turn to third party logistics providers to get them the best deals on less than truckload (LTL) shipping, integrated shipping methods and to reduce the delivery of products to retailers. To these ends, 3PL providers significantly reduce their clients’ shipping costs compared to what they would spend on shipping without the aid of freight logistics. But they obviously do so by charging their clients for freight logistics services.

So, what’s not to like about hiring a 3PL provider to reduce your company’s shipping costs and ensure that your goods are delivered in a timelier manner? After all, is there really such a thing as realizing freight transportation solutions without seeking the help of freight logistics experts? Yes and no. If freight logistics isn’t one of your company’s core competencies, you’ll certainly need to get logistics solutions from those that specialize in providing them. But you don’t have to turn to a 3PL provider and pay a middleman to provide you with shipping solutions when you can instead use online logistics software.

The difference between 3PL and logistics software solutions-also referred to as logistics management software-typically doesn’t lie in one having more logistics expertise than the other; rather, it has to do with how the logistics information is supplied, how much it costs and how much control companies have over their shipping process. Essentially, a third party logistics provider uses logistics management software to provide you with shipping solutions, whereas online logistics software lets you act as your own logistics provider for an affordable monthly fee. In no case will you find a 3PL provider that offers their services for the low price that you pay for logistics software solutions, nor will hiring a 3PL provider offer you as much control over your shipping options.

Having complete control over your shipping process has two main benefits: you can research the companies that you’re considering hiring and you never have to deal with a middleman’s business policies affecting the price or availability of certain shipping options. Aside of the financial and shipping management benefits offered by logistics management software, its greatest strength is its extreme ease of use. Although the term logistics software implies computer expertise, logistics software comes with an easy to use interface that neither requires expert computer knowledge or expertise in logistics, meaning that each of your company’s departments can be involved in its shipping process.

Logistics Software Allows Shippers to Conduct Their Own Freight Optimization

Posted on September 24, 2017 in Uncategorized

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.

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