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.

LTL Logistics Software Among Other Logistical Resources

Businesses shipping small loads through second party carriers often have difficulty finding affordable shipping arrangements. Truck Load (TL) shipping is unaffordable because a partial load would be shipped at the price of a full load, while parcel shipping can become unaffordable when a large number of parcels are shipped. When low volume shippers can afford neither TL shipping nor parcel shipping, they turn to Less than Truck Load (LTL) shipping – an arrangement where two or more partial loads fill a full semi trailer, and the shippers split the cost of the load.

For most small and midsize shippers, LTL shipping is the most affordable transportation arrangement, but maximizing its benefits requires a strong logistics function-a requirement satisfied by one of three resources-an in house logistics department, a Third Party Logistics (3PL) provider, or logistics software.

Evaluating the Resources

Traditionally, shippers keep the logistics function in-house by staffing logistics experts. When this option is unaffordable, they consider 3PL and logistics software.

The value of 3PL depends on the type of provider one uses:

  • A standard 3PL provider who provides basic logistical services
  • A service developer who provides specialized logistical services
  • A customer adapter who manages the shipping process
  • A customer developer who manages and innovates the shipping process

If you need a specific service, such as cross docking, or tracking and tracing, 3PL can be remarkably affordable, but when full shipping management is the goal, 3PL can be expensive. It can also create a feeling of disconnection from the shipping process. Compared to high-level 3PL, TMS software or LTL logistics software offer two distinct advantages:

  • It is less expensive than using a customer adapter or customer developer
  • It allows you to have full control of the shipping process

Available on a web-based model or an in-house model, the software can be implemented according to your company’s needs and policies. Additionally, the implementation process is designed for efficiency. The provider analyzes your transportation process, creates a program with the right features and functions, and delivers the final version of the program in 30-45 days.

Savings Start Immediately

Financially, the most attractive aspect of the software is its ability to deliver savings in the short term. In the first year, many shippers experience a ten percent reduction in shipping cost, with savings increasing in the years following. In an economy where recessionary spending is still common, a ten percent reduction in shipping cost can bring a welcome increase to a shipper’s bottom line. For many shippers, the savings generated by the software easily reach the six-figure mark.

If your business has a moderate shipping volume, TL shipping and parcel shipping may be unaffordable, and paying a 3PL provider to manage the shipping process may be unaffordable as well. If so, TMS software or LTL logistics software can provide an affordable resource for identifying the best shipping arrangements.

To learn which type of logistics software is right for your transportation process, contact a provider of web-based logistical solutions today.

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.