How Does a Logistics Software Solution Compare to Third Party Logistics?

If you’re searching for new shipping solutions, you may have encountered the debate that asks: which is more beneficial to the shipping process: implementing a logistics software solution or outsourcing logistics to a third party logistics (3PL) provider? To answer this question, its helps to consider the three things that every company wants out of the shipping process: cost effectiveness, excellent delivery time, and safe delivery of freight. With these things in mind, we take a look at whether a logistics software solution or a 3PL solution offers the greatest value.

Cost Effectiveness

In terms of cost, you’ll always pay more to receive a comprehensive, innovative approach to the shipping process from a 3PL than you will to implement a logistics software solution, and the reason why is simple: when you hire a full scale 3PL provider (i.e. a customer adapter), you pay a company to do what logistics software does without employing anyone. In other words, the software allows you to become your own logistics provider. Although other types of 3PL providers can be hired for less than the cost of customer developers (i.e. standard 3PL providers, service developers, and customer developers), they don’t provide the same level of service, with standard 3PL providers and service developers only offering specific services, and customer developers handling the full shipping process without proposing new solutions.

Excellent Delivery Time

Excellent delivery time depends on route analysis and optimization, as well as the availability of integrated shipping solutions. In simple shipping situations, route analysis could consist of analyzing route time in relation to distance, road surface quality, traffic patterns, etc., while in complex shipping situations, such as global shipping or moving unfinished products from location to location during the manufacturing process, route analysis could consist of the strategies mentioned above along with developing integrated shipping arrangements that could combine road, air, sea, and rail shipping, or any combination thereof. Improved delivery time can be achieved with both logistics software and 3PL. But logistics software, due to its impartiality, will present a broader range of options.

Safe Delivery of Freight

The safe delivery of freight is achieved through freight optimization, particularly in terms of using the right stacking strategies and ensuring that like products are shipped together. The cost of broken freight is perhaps the least mentioned aspect of shipping cost, and preventing it from happening can be achieved with either 3PL (e.g. standard 3PL provider or service developer) or logistics software. However, unless a shipper is looking for freight optimization alone, using logistics software would be the better choice financially.

Why Invest in Warehouse Software Solution

With today’s generation, the idea of a warehouse is no longer synonymous to pen and paper–thanks to modern technology. Keeping an inventory and tracking warehouse storage can now be accomplished right under your fingertips with the help of sophisticated warehouse software solutions. Convenient, efficient, and user-friendly, these software solutions get things done in a snap. You need not rely on your memory just to keep an inventory as the computer does it all for you. While this industry is creating a name for itself, many companies still do not realize the benefits of investing in warehouse software solutions. If you are one of those, then it is high-time to come out of your cave and discover the amazing benefits of getting a reliable warehouse software solution.

Less Cost, Increased Profit

Imagine the workaround of a manual order delivery which requires heaps of paperwork and point-persons. Then, compare it to the timeframe of doing the same delivery using a computerized system. Case studies show that a company can save more time and money when everything is placed in a computer. This includes placing the order, tracking it down, and making sure that it gets delivered without any delay. Warehouse software solutions act as the melting pot of the business’ logistics. It connects all the necessary departments which are crucial in the production down to the implementation. This minimizes production cost and the potential of occurrence of errors during the implementation. Warehouse software solutions often cut down delivery period to 2-3 days which prove to be beneficial on both the customer and the manufacturer. You may also be less dependent to warehouse personnel once you start using a computerized storage system. This allows you to allocate your budget on other things that are more important than spending it on your personnel’s salaries.

Accurate Inventory

Highlighting a sophisticated technology, warehouse software solutions provide more accurate results than manual inventories. Using an integrated system, the software can track machines, locate deliveries, and calculate essential figures. For example, bar scanning helps in reducing technical errors by one in every 3 million probes. It is also much better to rely on a computer especially when numbers are involved. Computers can pick up shipping and accuracy rates, order completion rate, and other crucial factors in production. Using automation, you can guarantee that inaccuracy (which often happens due to human error) will be lessened by a huge magnitude.

Quick, Fast, and Convenience

Without a doubt, using warehouse software can save your company blood and sweat-figuratively. Keeping everything in hard copies often means consuming too much space and energy. But with an integrated software solution, you can access all the important information required in shipping and production anytime you want. Once everything is set, your company can process orders within seconds and have everything delivered even on the same day.

Getting a warehouse software may require you to shell out some cash in the beginning, but instead of seeing this as an ordinary purchase, treat this as an investment bound to give you long-term benefits.

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

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