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.
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.