Logistics Software Solutions Can Benefit Your Company in Three Basic Ways

When companies present their transportation logistics solutions, they have tendency to either engage in corporate speak and not really say much about their solutions or speak with such expertise that they fail to give you a basic understanding of how logistics solutions can benefit your company in a daily way. For small to midsized companies, transportation logistics typically arrives in one of two forms: by a company outsourcing its logistics to a third party logistics (3PL) provider or by implementing logistics software solutions that are available as an online software application.

Given that logistics software offers an easy to use interface can be customized to a company’s particular shipping needs and costs far less than outsourcing to 3PL providers, it’s usually the logistics option of preference for small to midsized companies that don’t have the luxury of a shipping fleet or a large shipping budget. If you’ve heard of logistics software but are looking for a basic understanding of how it can aid your shipping process, we offer the following overview of how logistics-software solutions help companies in terms of freight optimization, shipping route optimization and shipping method integration.

Freight Optimization

For small to midsized companies that regularly ship less than a full freight load of products, freight optimization typically subsists on finding the best less than truckload (LTL) shipping options. LTL shipping is when a shipping carrier lets companies ship partial loads that combine to compose a full truckload. The cost value of LTL shipping comes from shippers splitting the cost of a full freight load. Although less than truck load shipping offers low shipping rates, due to numerous stops for delivery and pick up, it often takes goods longer to reach their destination than in other shipping arrangements. Nevertheless, logistics-software solutions can be used to find less than truckload carrier routes that offer the best delivery time. Because warehouse stops are a common feature of freight shipping, logistics software also offers warehouse optimization capabilities.

Shipping Route Optimization

If you use a 3PL provider, you probably won’t have any idea what shipping routes your carriers are using. But shipping routes are a major factor in determining overall shipping cost. Logistics-software can analyze shipping routes according to multiple criteria, including: length of route, traffic patterns, road quality and construction patterns. One example of how route optimization can decrease shipping cost and improve delivery time is by analyzing routes in terms of travel time. For example, a route that is shortest in distance may be longer than another route in terms of travel time due to traffic patterns.

Shipping Method Integration

Shipping method integration is an unofficial term that refers to the ability of logistics software to suggest integrated shipping methods for the sake of reducing shipping cost and improving delivery time. For example, even though air shipping is traditionally more expensive than ground shipping, logistics software might suggest shipping certain shipments by air due to expensive, unavoidable warehouse fees that would result from ground shipping. In addition, logistics software may make such suggestions as shipping products halfway to their destination by boat and the other half by freight truck.

Truckload Logistics Software – Shipping Advantages Gained By Companies

Companies that use full truckload shipping often believe that they already have the absolute best. Even with the best shipping method possible, there is always room for improvement. Truckload shipping provides two very noticeable benefits to companies. Products go to their destination on a direct route and do not have to be transferred or temporarily stored in a warehouse. The total shipping cost for these services includes the cost of logistics. A question that should be asked by every company is whether or not the logistics provider being used is truly working for their benefit. The common trend for this type of freight management is to either hire someone to handle the process internally or rely on a third party to perform the task. These options are sometimes too expensive for companies just beginning to take advantage of full truckload shipping. Truckload logistics software is a new alternative to these higher priced methods. It eliminates the additional cost of hiring for the task and lowers shipping costs.

Benefits Companies Receive By Using Truckload Logistics Software

Truckload logistics software is meant for companies that use full semi-trailers to ship freight regularly. The software presents multiple shipping solutions through an easy to use interface. Implementing this management tool allows companies to take charge of their own logistics decisions and become their own provider. Broader shipping options, integrated shipping results, and the elimination of third party services are all advantages received by using this type of software. Many studies have been performed to determine the impact of logistics on freight handling and have averagely shown a ten percent reduction in shipping costs for the first year of use. Third party providers often work with specific carriers and this limits the choices available to your company for each shipment. These limitations increase costs because more sensible options are ignored by the provider. By taking logistics over, you have endless possibilities for shipping solutions and are not limited to specific routes or carriers.

Truckload Logistics Software: How Shipping Costs Are Reduced

Companies all over the country pay out too much when they hire an internal expert or contract logistics to a third party. Experienced experts that work within the company can cost up to ninety grand a year. They may do very well at researching shipping options, but are not able to come up with or go over all the possibilities. Truckload logistics software can come up with every possible option in only a few minutes. Third party contracts also involve additional upfront costs that are avoidable and increase overall shipping costs for companies. While third party providers have been a common choice for companies that do not have their own logistics division, this software is beginning to take its place. Logistics applications provide better results for shipping decisions and eliminate all costs associated with third party contracts and company experts. Costs are also decreased by better freight optimization and shipping route choices. The applications are easy to use and can make shipping a synch for any company. Initial application costs are very minimal and the possible savings are phenomenal.

Truckload Logistics Software – A Better Solution During Tough Economical Times

Companies that use large semi-trailers to haul their products need a little extra support to get the most out of their shipments. Truckload logistics software works best for companies that produce enough freight to use full truckload shipping. There are alternative software choices that are just as helpful for smaller to mid-sized companies that must use less than truckload shipping for cost effectiveness. This shipping alternative takes the freight of many companies and fills a truck. The cost is split between the companies using the service. Both types of software can be used to perform better management of freight. This work can also be contracted to third party logistics experts. What most companies find is that the software gives them better control and is a much smaller, reliable investment. The struggling economy has left many companies trying to determine how to decrease budget costs so they can continue to be profitable. Logistics is one way to lower shipping costs and manage company freight. By being able to maximize the load capacity and pick the best routes, costs are drastically decreased making the software very useful.

Truckload Logistics Software: How Does It Save Companies Money?

Companies that do not rely on truckload logistics software often result to hiring third party providers. There are many reasons why this does not produce the desired cost savings. Third party providers are in the business to make money as everyone else. They choose routes and carriers that in turn make them a profit. By using managing your own shipping choices, every carrier and route chosen benefit the company and making someone else profitable is completely taken out of the picture. The weakened economy has also caused many third party logistics companies to increase rates. Discounts given by carriers have almost diminished and they must make up for the price difference. These discounts are a main source for their profit. A higher price is charged to your company over the discounted price. Third party providers also only deal with carriers that offer favorable discounts. This reduces the amount of choices available when using these services. Software meant for logistics management removes this entire scenario and puts shipping back in company hands.

Truckload Logistics Software Does Not Have Expensive or Difficult To Implement

Truckload logistics software is not this huge project that will take years to put in place. The software is easy to set up and is done so by professionals. Companies that provide this software make it simple to integrate into existing systems. What should you look for when evaluating software requirements? First, look for a company that uses non-proprietary tools. This reduces dependency on the software provider when something changes with your business or the technology being used. Software that operates with common operating systems and has non-dependent tools and utilities will work better in the existing technological environment. It will also be easier to use, more familiar, and cost much less. With the right company and software, implementation can be very simple. The upfront cost of purchase and set up is fractional compared to the amount of money saved on shipping.