TL Logistics Management Software – Frequently Asked Questions

What types of Shippers Use TL Logistics Management Software?

In most cases, shipping companies that regularly produce enough products to fill a full semi trailer use truckload logistics software, as “TL” refers to truckload, or full semi trailer. However, it’s important to note that TL logistics software actually refers to a service option within logistics software as a whole. In other words, companies that have less than truckload (LTL) shipping needs and use logistics software to meet them can have a TL logistics option added to their package at a later date, particularly if their software operates on a software as a service (SaaS) model.

Does it Make Sense to Combine LTL and TL Management in the Same Package?

A company can have as many logistics management options within a software package as it wants. But the fact that more options result in higher fees usually deters companies from adding more options than they presently need. However, if a company can benefit from having its LTL shipments combined into TL shipments and transported to a break station, then having LTL and TL shipping options within the same package could be beneficial.

Is it Better to Implement Logistics Software on a SaaS or an Internal Basis?

Although some companies have policies that require software solutions to be implemented on internal basis, most companies receive the greatest benefit from implementing logistics software on a SaaS model. To implement the software on an internal basis, you typically incur the following costs, which are eliminated by SaaS: software purchase, hardware purchase, system maintenance fees and system upgrade costs. In addition, implementing logistics software as a web-based application offers the advantage of letting system users access the system from any Internet terminal worldwide, whereas internal solutions function like an intranet.

Can TL Logistics Management Software Replace the need for a Logistics Expert?

Perhaps the greatest misconception about logistics software is that you need expertise in logistics to use it. On the contrary, logistics-software does the work of a logistics expert, presenting a shipper with optimized shipping options across the entire shipping process. One of the main selling points of logistics-software is the remarkable affordability that it brings to the logistics function, which comes from its replacing the need to hire in house logistics experts or high level third party logistics (3PL) providers.

Isn’t 3PL the Still Best Option If You’d like to Dialogue With a Logistics Expert?

The top complaint of 3PL customers is that they feel kept on the outside of the shipping process due to lack of contact with their 3PL provider. Furthermore, most providers of logistics-software allow their customers the option discussing logistics issues whenever necessary. With logistics software, you essentially become your own logistics provider, which is as close to the logistics function as you can get.

Logistics & Transportation Solutions Moving Into the 21st Century

Logistics solutions are steadily making improvements in their technology and abilities to enhance the businesses prospective for many companies. They are already certified with the small parcel carriers such as FedEx, UPS, Canpar, USPS, BAX and others. They are creating specialties in the area of less than truckload shipping by using integration. They are hiring professionals in the areas of software, computer engineering, electrical engineering, and former LTL carriers.

Companies are turning their attention to logistics software such as RateLinx LTL Analysis. This software provides businesses with a greater level of market visibility at a previously unrealized level of granularity. It is providing them with answers and giving them plans that are specific to the shipping characteristics of their company. It will help companies execute their plans for improvements and give them outstanding results in the area of LTL pricing.

The logistics software is reducing and eliminating the need to outsource. They are realizing market discounts on a continuous basis and the ability to be setup with LTL carriers that they personally choose and have developed a strong trustworthy relationship with. At the same time they are ending their reliance on the seemingly never ending software maintenance costs. They are, in essence, taking back the control and making decisions regarding their freight on their own.

With the new technologies that are becoming so popular, companies are realizing savings that they have been looking for some time now. Many of the companies are saving, at the minimum, ten percent in only the first year of using the new software.

When a company decides to move their business to the next level, there are four simple steps that are necessary to get them started. They need to have an analysis run on their business needs. Once the analysis is complete they will begin putting the pieces together. They will determine what tools are needed, which specific carriers are desired by the company, what integration needs are necessary to get the project moving, and what auditing and payment needs are necessary.

By taking business to the next level and taking advantage of the state of the art technologies that are available, businesses are making their freight management and pricing extremely simple. Because the plan for improvements is made specific to a particular company, the cost reduction of the LTL costs will be at ten percent before they know it. They have trusted advisors for all of their LTL, TL, small parcel, international, ocean, and hazardous needs.

The process of moving to this new system will be very smooth and integrated. They will ensure that overpaying for freight is something from the past and that the savings will continue as long as the new technologies are being used.

Logistics Planning Software and Freight Shipping

Since the deregulation of the trucking industry in the 1980’s, trucking companies have offered an increasing range of shipping solutions that helps the manufacturer minimize shipping costs; one of which is less than truckload (LTL) shipping. In LTL shipping, companies that ship less than full truckloads of goods can save money by paying a fraction of full load shipping fees. For trucking companies, shipping earnings remain the same. They create a full truckload out of partial load shipments and receive payment from each company. For manufacturers, arriving at the optimal LTL solution usually requires the implementation of logistics planning software, which analyzes the cost of shipping and transportation needs in relation to product destination.

The obvious advantage of LTL shipping is that it allows companies to decrease shipping costs. But the downside is that products often take longer to reach their destination due to the multiple destinations implied by the shared load. In such cases, using logistics planning software to analyze a shipping situation instead of opting for standard LTL is the best way to integrate a solution that brings lower shipping costs while ensuring timely delivery. Whereas as LTL companies specialize in LTL, logistics software specializes in developing solutions that combine each element of the shipping process into a streamlined, cost effective delivery system. A company that requires freight tracking services in addition to simple pick up and delivery would benefit more from using logistics software than relying on the advice of an LTL shipping company.

Most companies that utilize logistics software consistently run a large number of products that are assembled at multiple locations before they arrive at retailers. At first glance, incurring the start up cost and service fees of logistics software might seem contrary to the goal of decreasing operating costs. However, studies show that companies who implement logistics software regularly reduce their shipping costs by ten percent in the first year alone. Exactly how is this savings created? In part, it results form the fact that logistics software eliminates costs associated with other logistical solutions, such as annual software maintenance costs, TMS software costs, 3PL costs, freight margins, gain shares and common rate base licensing costs.

While logistics software is popular among companies whose yearly shipping costs can amount to more than a small company’s annual earnings, it can also offer solutions for smaller companies. For example, a company that simply wants to improve delivery time can use the software to analyze road construction trends and highways traffic patterns. In either case, the software never fails to improve a manufacturer’s finances by making its system of delivery markedly more efficient.