Shipping Management Software Vs Freight Brokerage: Which Is Better?

Many shippers spend nearly as much on shipping as they do on payroll. Consequently, they look for ways to improve freight management with the goal of reducing freight costs. When creating a logistics department would be too expensive, most shippers implement logistics software or hire a freight broker. Also known as shipping management software, logistics software allows shippers to become their own logistics provider by supplying them a comprehensive logistics function. Also known as Third Party Logistics (3PL), freight brokers make carrier arrangements on shippers’ behalf.

Both options can yield solutions that combine quick delivery time, excellent freight care, and affordable rates. But logistics software offers certain advantages that freight brokers often don’t, beginning with low service cost.

Low Service Cost

Not all brokerage options require a significant investment. But the ones that don’t are oriented toward specific logistics services (e.g. cross docking, and tracking and tracing), not comprehensive solutions. For complete management of the shipping process via 3PL, a shipper must use a customer adapter or customer developer, which could cost as much as maintaining a logistics department.

Excellent Customer Service

The number one complaint among 3PL customers is a feeling of distance from the shipping process. In many instances, this is the result of what 3PL is supposed to do: take the logistics function out of a shipper’s hands. But many shippers discover they want more control over shipping than they first believed. Logistics software eliminates distance between the shipper and the shipping process by allowing the former to become its own logistics provider.

Broader Shipping Options

A freight broker will provide more options than you could realize on your own, without the aid of logistics software. But those options could be limited compared to the options offered by logistics software. Some freight brokers use electronic posting systems, where available carriers are matched with available loads, to arrange shipments. While using these systems is a valid strategy, it should not be the only strategy, as it often is. Logistics software empowers shippers to form relationships with carriers who don’t use posting systems.

Control of Shipping

Almost every shipper wants control of the shipping process. But when creating a logistics department would be too expensive, many shippers relinquish the process – and control – to a 3PL provider. Logistics software gives you the same control over shipping as a logistics department would, but a fraction of the cost. If problems arise with the software, or if you need new logistics options, the software provider can resolve the problem or make the necessary changes.

Conclusion

The shipping process involves significant costs, which can be mitigated by implementing a strategic logistical solution for transportation management systems. Although freight brokerage is a valid option, it often lacks basic benefits that shipping management software always provides: low service cost, broad shipping options, and control of the shipping process. Logistics software is often advertised as a solution for small to midsize shippers, but it can also benefit large shippers who wish to save money by not hiring a team of in-house logistics experts.

Warehousing Management Software: One Of The Best Investments You Can Make For Business Here’s Why

Warehousing software can be expensive which is why in this tough economy it is easy to understand why a business owner, whether they be large or small would not want to take on an unneeded expense.

After all the ultimate goal of business is to keep expenses down so you are able to maximize profits to the best of your ability. However, certain things you can purchase should not be looked at as expenses.

These things should be looked at as assets, tools for business to grow and function more efficiently. Warehousing management software offers just this. There are a lot of businesses who have probably heard of using this type of software, but many of them are still not sold on how powerful it can be for them. Not a problem, you can easily be convinced. The advantages are plenty.

The entire purpose of warehousing management software is to enable a user to get an instant picture of certain information that is very pivotal.

Quick access means that warehouse operations function far smoother than what they may be at the moment. You will be able to cut back on various costs, and as a result increase your bottom line.

For starters, you need to constantly be aware of how much inventory is in your warehouse. You may already have a system in place for this, but it can be made far more effective.

Warehousing management software will help you know instantly how much inventory is in your warehouse, whether it be for specific parts or for everything.

You need to know how many orders are being shipped at the moment, this gives you an idea of how much product is being moved. The logistics software is going to help you get an instant picture of this as well.

At times your business is going to have pending orders. There are several processes involved in this, and you need to know what they are. Warehousing management software will easily alert you to the various stages of processing when it comes to pending orders.

Does your business hire staff? Odds are it probably does, and you need to make sure they are being as productive as possible. You cannot afford to pay people who are not being productive right?

Warehousing management software will allow you to set up a system so that you can monitor staff productivity details. This enables you to make sure your staff is performing the way they should and that your warehouse is operating the way it is supposed to.

You also can use the software to see how many goods have been shipped by the warehouse for a specified period of time. This information is going to be needed at times, and you can easily search for it for any time period you wish.

Businesses that are smaller and have not had the chance to automate their warehousing management process will definitely benefit from using warehousing management software.

Logistics software is a very simple way to automate your warehouse management process without having to interrupt the flow of your business. You can be up and running in no time and if you need help it is easily available.

Do not let the cost of warehousing management software deter you from deciding to make an investment in it. The longevity of your business is important to you right?

Having this type of inventory software at your disposal will benefit you in ways that will protect your business from the tough economy.

Your business needs to operate as efficiently as possible, and you definitely cannot rely on the old way of doing things. Make the investment in some good warehousing management software today and start realizing the benefits mentioned in this article.

Inventory Software Steps That Will Maximize Your Inventory Investment While Reducing Your Expenses

You might not think that your business needs to use inventory software, and maybe this is true if you are in the very beginning stages of running a business.

However, once you were truly up and running you would be doing yourself a terrible disservice if you were not putting in place a good inventory management system that would allow you to maximize the way you were doing things.

When a business first gets started or if it is still quite small the business is going to go through a lot of cash. This is usually the make or break time for a lot of businesses.

If they are unable to use cash the right way then they are not going to survive very long. It is getting tougher and tougher to stay in business if one is not able to have cash on hand when they need it.

Seeing as how you are going to need cash on hand all the time you cannot afford to have cash tied up at all. This is going to happen no matter what you do, but there are some areas where you can prevent such problems.

Inventory would be one of them. Using the right inventory management system is just the first step. Making sure you have the right software in place to run it efficiently is the next step.

Your goal is going to be carrying only as much inventory as needed based on customer demand. You might decide to carry a little bit extra for the purpose of bigger discounts from suppliers or to hedge against fluctuations in customer demand.

In any case the goal is going to be finding that sweet spot. You do not want too much, but you also will not want too little.

When things are done thins way it means you will not have to worry about having cash tied up in inventory. Now why is this important. You want to be able to use this money in other areas of the business.

This is really important for any business that is just getting started and having cash on hand will allow you to be prepared for unexpected things.

Inventory software also allows a business to reduce negative cash flow, because it is going to allow a business to keep down inventories.

At least it will allow a business to keep them right where they need to be. Excess inventories can mean doom for certain business, especially if they are not able to eventually move it.

What inventory software is really all about will surprise you because many businesses fail to understand how logistics software can really benefit their organization long term.

For instance, say you want to set up an inventory management system that is not going to consume a lot of your time right? Well if this is the case you cannot have a system that is overly dependent on other people.

You want to know that any and all information you need to ensure your system is effective can be quickly obtained by you.

Even if you have to rely on others you still want to know what information they will need in order to ensure they bring you back the information you need to input into the software.

Inventory software will help you along in this regard. It is designed to help you answer important questions and make needed changes.

It is made so that you are able to control your inventory the way it needs to be so you keep your costs down. In such a competitive business environment you need this.

The investment you might have to make in logistics software is nothing compared to the long term value you will get by using this program daily.