Advantages of Logistics Software Over Third Party Logistics

For manufacturers who ship a steady supply of cargo, the cost of shipping can rival the cost of payroll. Consequently, reducing shipping costs is a full-time task for most shipping managers. Today, most shippers manage the logistical side of shipping (the part of the shipping process where costs can be cut) with one of the following resources:

  • In-house Logistics – A model of shipping logistics in which the shipping process is managed by a shipper’s own staff of experts.

  • Third Party Logistics (3PL) – A model of shipping logistics in which a third party manages one or more aspects of the shipping process.

  • Logistics software – A web-based or in-house program that allows shippers to choose its own shipping arrangements and perform important tasks such as a freight audit.

Most shippers prefer the first option, but paying a team of experts can be unaffordable. Left to choose between the second and third options, many shippers choose the latter based on the following considerations:

Cost

The cost of 3PL is based on the services a shipper receives. When a shipper receives only a few services through a standard 3PL provider or a service developer, 3PL can be affordable. However, when a shipper uses the comprehensive services of a customer adapter or customer developer, the cost of 3PL can be significant. A software-based resource can facilitate comprehensive shipping management for a fraction of the cost of high-level 3PL services.

Shipping Options

Some 3PL providers make carries arrangements using a narrow range of carrier options, such as those found in an electronic posting system. Conversely, logistics software allows shippers to choose from a limitless range of shipping options based on the appropriate shipping model (e.g. less than load or truckload), and perform a freight audit to monitor shipping costs.

Control

Shippers who use 3PL commonly complain that the shipping process feels too removed-a complaint that often results from the failure of a 3PL provider to provide ongoing, in-depth communication to the customer. Using a software-based resource eliminates this issue by placing the shipper in full control of the shipping process.

Permanence

When shippers use 3PL, they often go through multiple 3PL providers as their shipping process evolves, beginning with a standard 3PL provider and eventually using the services of a customer adapter or customer developer. In addition to being more expensive than using a software-based resource, switching from one 3PL provider to another requires forming new business contracts, continuously delegating more shipping tasks to a third party, and implementing new standards for quality control.

Most shippers wish to implement a permanent logistical solution as soon as possible, and implementing a software-based solution is the best way to do it. After the solution is implemented, it options can be changed as the shipping process changes, providing a seamless transition that does not require the customer to look for a new service provider.

Conclusion

For many shippers, logistics software is the most cost effective logistical resource. In addition to allowing shippers to choose from the broadest range of carrier options, it allows them to perform important tasks (e.g. freight audit) without the assistance of a third party. To learn more about the benefits of software-based logistics, contact a provider of transportation software.

Freight Logistics Software Vs Third Party Logistics: Which Is Better?

Today, two types of freight solutions appeal to shippers that rely on carriers: logistics software (a.k.a. TMS software) and third party logistics (3PL). Logistics software allows shippers to become their own logistics provider by using a software program, while 3PL providers negotiate arrangements between shippers and carriers. Frequently compared and contrasted, logistics software and 3PL each offer unique benefits. However, the former has the following important advantages:

Less Expensive

Standard 3PL providers and service developers, which offer particular services and not comprehensive solutions, are usually quite affordable. When you hire a provider that offers innovative management of the shipping process – namely, a customer developer – the cost can compare to hiring an in-house logistics department. Logistics software provides logistics through a software as a service (SaaS) platform. It can also be implemented as an in house solution. Instead of relying on a costly customer developer, you can save money and realize more control by using a software solution.

More Control

A top complaint of 3PL customers is they feel distanced from their shipping process and the entity that manages it. Different 3PL providers have different approaches, but few of them integrate the shipper in the shipping process in a formal capacity. For some shippers, having the shipping process fully managed by another entity is appealing. Due to its expense and vendor issues it involves, most shippers wish to be involved in the process. Freight logistics software does more than “involve” shippers in their own shipping process; it puts them in control of it.

Better Options

3PL providers make freight arrangements by listing an available load in an electronic posting system, where it can be matched with an available carrier, or by negotiating with carriers that don’t use a posting system. Because the former method is usually the easiest, many 3PL providers use it to arrange the largest percentage of shipments – a scenario that limits shippers to carriers who use a posting system. Logistics software removes this barrier and exposes you to more carrier options. In some instances, a shipper misses the best carrier option because the carrier who could provide it will not work with the shipper’s 3PL.

Greater Security

No shipping process is as secure as one that the shipper handles on its own. When outsourcing to a 3PL, shippers naturally lose the capacity to scrutinize the carriers with which their loads are placed. Although 3PL providers select carriers with the customer in mind, they also select them with themselves in mind – a dichotomy that can jeopardize the interests of shippers. Freight logistics software alleviates security concerns by putting you in control of the shipping process.

Conclusion

Logistics software is a viable replacement for 3PL, particularly for shippers who wish to control their own shipping process. Next to payroll, shipping is the second largest operating expense for most shippers. This means that rejuvenating a stale shipping process with better carrier options can have a significant impact on a company’s bottom line – an impact that logistics software allows you to achieve.

Health and Security Get a Boost From Software Systems

Health and security concerns have increased quite drastically in recent years. This has been occasioned by increased population numbers across the globe as well as limited resources and growing class divides. There is also an increase in the overall amount of pollution in the environment which has impacted health quite negatively for many people. Governments have been quite overwhelmed addressing security and health concerns as they seek to do so in a world which is changing. However, technology seems to be offering a number of useful solutions that can help governments meet these challenges more effectively.

Here are two of the most useful software solutions to come onto the scene.

Law Enforcement Software

This is software that is used by law enforcement agencies to make it easy for them to perform their functions. This software handles a number of challenges that they face, especially logistical and organizational challenges that come up in their operations. Logistically, these systems are able to improve how these correctional facilities utilize the resources that they have at their disposal. The software allows them to task and deploy these resources in an intelligent manner so as to ensure that limited resources are used in a meaningful way.

On organizational matters, law enforcement software eases the process of case management. This makes it much easier to dispose cases quickly. In a context where the number of cases that law enforcement agencies have to deal with has actually increased, it has become necessary that these agencies streamline their processes and procedures. This is what this software is making possible for the agencies that are quickly embracing it.

EHR System

This is an acronym that stands for Electronic Health Records system. This is an electronic way of storing essential health and patient information on patients who have been treated at a medical facility. The system is quickly replacing the use of physical hard copy files as has traditionally been the case. These systems are being deployed at hospitals so as to ensure that important patient information is easily accessible to those who need it from wherever they are.

The EHR System makes it possible for someone to access medical care from wherever he or she is. It will also eliminate the delays that are occasioned in hospitals as they seek to establish certain information as it is already in the system. Routine questions can then easily be dispensed with so that more patients can be treated without compromising the quality of medical care given.

Logistics Software Helps Companies Achieve the Optimal Freight Bid

Whether your company’s success depends on shipping a large amount of goods or a small amount of gods, chances are that your shipping process can benefit from the implementation of logistics management software. Also referred to as freight transportation software, logistics management software uses the power of logistics to increase the delivery time of a company’s products and cut its shipping costs in the process. While logistics software can benefit companies of any size, it remains ideal for small to midsized companies that don’t have the IT infrastructure to support a full scale shipping system and must therefore rely on third party shipping for the delivery of their goods to and from warehouses, to and from manufacturing locations and ultimately to store shelves. By using logistics software, companies can examine the shipping process from a variety of vantage points, including accounting, billing, dispatching, payroll, driver settlements, carrier settlements and shipping route efficiency, allowing them to realize the optimal freight bid.

In addition to the shipping process benefits that logistics software offers companies, perhaps its greatest advantage is that you don’t have to have a background in logistics to understand and operate it. On the contrary, the software comes with an easy to understand user interface that reduces learning curve, and the software can easily be integrated into a company’s already existing transportation procedures. Logistics software can be accessed from any computer location through the Internet and offers a variety of customized modules that allow all employees associated with the shipping process to view the process from their particular vantage point. Some of the module areas commonly offered by logistics software are accounting, customized reporting, scheduling, shipping management, purchasing management, labor management, job management, order management, inventory management, data import and export, cross currency management and labor management.

One scenario where logistics software regularly benefits companies by improving their shipping time and reducing the cost of the shipping process involves warehouse management. In some cases, companies that lack logistical capabilities end up choosing the shortest shipping route in terms of distance without considering the number of warehouse stops that are made along the route. Consequently, their goods take longer to reach their destination than they would have if shipped on a longer route that didn’t contain as many warehouse stops. In addition, more warehouse stops equals increased warehouse fees, and logistics software may discover that the additional fuel charges that result from a longer route are less expansive than the total warehouse fees of the shorter route.

Another scenario where logistics software helps companies improve delivery time and save money involves evaluating alternate means of transportation. Although a company might be used to moving its products by freight, logistics might reveal that it could improve delivery time and saving money by air shipping their products. Although traditionally more expensive than ground shipping; in some situations, air shipping can prove more economical than grounding shipping due to the collective expenses associated with ground shipping routes. Regardless of your company’s current shipping arrangements, examining them using logistics is certain to save you time and money by allowing you to realize the optimal freight bid and/or integrated transportation solutions.