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

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.

How Shipping Software Is Good for Shipping Business?

In the shipping industry, choosing a software solution is a vital enterprise for long-term business growth and sustainability. For shipping companies, the biggest challenge is not in finding software, but implementing and making it work with existing technologies and procedures in supply chain technology which includes integrated shipping software solutions has been proven to streamline business processes, reduce cost significantly, and increase revenue many times to achieve organizational goals and ensure that shipping operations are running smoothly and effectively.

In the shipping business sector, choosing a software solution may be a crucial enterprise for long-term business growth and sustainability. It’s thus vital for shipping firms to maneuver through the choice process with knowledge that not all shipping software vendors supply solutions that would address all their operational considerations.

Shipping firms must visualize the golden rule that procuring the latest data technology must not only propel the shipping processes in terms of efficiency and leveraging the business but also reduce operational costs. Proper and adequate pro-active research is required before hauling up the right shipping software. Choosing a software solution that doesn’t cater to the shipping organization’s operational needs would translate in sheer squander of time and valuable resources.

Selecting an efficient and cost effective company means saving profits and reducing operational costs to a significant level.

Shipping software has helped companies in various parts of the world enhance their productivity and competitiveness through better and organized planning and management of their operational activities.

The software offers scalable and efficient solutions to enable carriers maximize profits and reduce operational expenses.

Features of Shipping Software:-

Rate Shopping:

• Queries for current rate information

• Integrates with custom/local and Interactive carriers.

• Rate comparison with other carriers.

• Rate shopping solutions and shipping service deliver significant cost benefits for small business

Multiple ERP Integration:

• Provides seamless integration with ERP systems

• Extracts records from ERP system

• Enables all features & benefits that software possess.

Integrates with Interactive & custom/local carriers

• Real time access to carriers such as FedEx, UPS, USPS, DHL & Custom/Local carrier(If integrated)

• Certified partner of FedEx & UPS

• Provides rates, transit time, delivery date, tracking number, shipping labels

Cost Effective:

• Since its SaaS (Software as a Service) based, It eliminates hardware, software & licenses cost.

• Cuts costs by providing a centralized application, eliminating multiple applications at remote locations

• Allows price/rate shopping on a click of button & fetches best rates available from all the carriers.

• Its centralized application meaning you need not have any extra software/hardware to be pre-installed on your machine.

• Consolidate shipments for the same destination

Real Time Access:

• Real Time access to commercial carriers & status of shipment.

• Tracks shipments not delivered on time

• Shipping rates from the carriers

• Rate compare

• Make shipment

• Void shipment

Batch Processing:

• Save time by generating labels and packing slips in batch

• Future date shipments

• Batch shipment

• Generates labels for printing on thermal printer

Logistics Software Solutions Vs Hiring a Parcel Rate Adjuster

Parcel carrier rates aren’t designed to help your company reduce shipping costs; they’re designed to support the profits of parcel carriers. You won’t hear it in their advertisements, but parcel carriers have an inflexible set of standard rates that give the appearance of flexibility due to a set of pricing algorithms that determine how the rates are applied. So, how do you keep your shipping system from being a financial casualty of the parcel carrier system? The first step is a simple: avoid being convinced that one parcel carrier is somehow “better” than the rest. When people arrive at this perception, it’s often in response to advertising ploys that promote notions of a carrier’s “nobility” via its selfless dedication to the customer.

When businesses become dedicated to one carrier, they typically stop shopping for better parcel shipping rates and end up paying for services that they don’t need. Therefore, step two of assuring that your company gets the best carrier rates is either having a parcel rate adjuster investigate your situation or implementing transportation logistics software. Both transportation logistics software and parcel rate adjusters offer extensive logistical information that reveals fair courier rates for a variety of shipping situations, including the comparative analysis of fuel surcharges between carriers and audits of shipping fees that uncover breaches in service, such as non-delivery of services or service delivered too late. Logistics software and rate adjusters also determine whether your company is being charged for services that it simply doesn’t need, such as residential delivery or Hazmat shipping services.

When you consult logistics software or a reputable rate advisor, you can expect to receive detailed questions about what you ship and how you go about shipping it. In each case, cost savings suggestions are often simpler than expected. For example, a Philadelphia law practice was able to save $15,000 a year in shipping costs by determining when parcels were expected instead of sending every parcel overnight. Why didn’t the firm do this in the first place? In the legal profession, the “importance” of legal documents leads to the perception that they need to be delivered as quickly as possible, even when they don’t. Similar to seeing through advertising ploys, simply seeing through the trends in your business area can result in significant parcel savings.

Arriving at the best shipping plan for your business involves selecting the shipping options that meet your specific needs and then finding them at the best price. While some companies choose to consult with a rate advisor, other companies choose to implement logistics software and save money. In addition to being more cost effective than hiring a parcel rate adjuster, logistics software solutions arrive in a shorter period of time and are always free of human error. If you suspect that you’re paying too much for parcel shipping or you haven’t compared rates in awhile, why pay even more by hiring a parcel rate adjuster when logistics software solutions can offer you more dependable results in a shorter period of time and at a lower cost?

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