Logistics Software Removes the Need For 3rd Party Logistics Providers

The more products a company ships, the more shipping costs become subject to cost saving strategies. For most companies, realizing the most economical shipping solutions depends on the implementation of the most popular form of supply chain software (SCS): logistics planning software. On the most basic level, the solutions offered by logistics software improve a company’s phased planning measures, product sales forecasts and scientific safety stock. Some companies hire 3rd party logistics providers, but more and more companies are turning to logistics software in place of 3rd party logistics providers for two reasons: logistics software offers the same level of quality as 3rd party logistics providers and it offers it a much lower price.

When companies use logistics planning software, they can centralize and integrate their product delivery system by allowing drivers at different sites to connect using the most efficient travel routes, which increases product delivery time and decreases fuel costs by reducing empty running. Regardless of which style of logistical planning a company needs to implement-inbound logistics, contract logistics, LCL/FCL, LTL/FTL, etc.-logistics planning software allows companies to arrive at advanced planning and scheduling solutions that can significantly increase their bottom line. By implementing this software, companies can improve the cost effectiveness of the following product distribution arrangements, among others: container planning and empty container repositioning, intermodal transport, multi-hub and multi-leg transport, cross docking, multi-compartment trailer planning and inventory management.

One example of how logistics software helps companies reduce their shipping costs can be seen in less than truckload (LTL) shipping arrangements. Especially beneficial for companies that don’t ship a high volume of goods, LTL shipping allows companies to pay a fraction of full truckload (FTL) shipping costs. LTL shipping combines multiple partial truckloads into a full truckload and splits the full load price between the shippers. For trucking companies, LTL is beneficial because it draws in customers who would traditionally ship their good by parcel carrier. Another example of how logistics software can save companies money is by examining the characteristics of shipping routes. For example, while the shortest route might seem to be the fastest route, this software can reveal that a longer route would be faster due the traffic characteristics of the shorter route.

Without this software, most companies continue to pay more for logistical solutions than they need to. While research shows that both logistics software and 3rd Party logistics providers can help companies reduce their annual shipping costs by 10 percent at the end of one year, opting for this software adds to the savings. When companies use logistics software, they increase their bottom line in basic two ways: by delivering their products to the sales floor faster and by reducing the cost of getting them there.

Logistics Software Provides Companies With Freight Optimization

In the manufacturing industry, the discipline of logistics focuses on efficiently moving products from the manufacturer to the buyer. For large manufacturers, logistical operations can represent a large expense, especially when logistical elements are managed separately instead of being integrated into one solution. In an attempt to take the time and guesswork of out executing logistics, many companies totally or partially outsource their freight optimization needs to third parties. A complete outsourcing amounts to hiring a company to move products throughout the entire supply chain, while a partial outsourcing involves letting a third party manage the transportation of goods through the “stages” of the supply chain. However, implementing logistics software is a more cost effective way to achieve freight optimization that offers the same level of quality as a third party logistics provider.

There are several factors that contribute to a manufacturer’s total shipping costs, including warehouse fees, inventory fees and freight carriage fees. To minimize these fees, a manufacturer might choose to ship by air carrier instead of in tandem with freight carriage, significantly reducing warehouse fees by moving the goods from manufacturer to buyer in a matter of hours. However, to save the most money, companies have to examine all three cost areas with an eye toward developing an integrated cost savings solution. In developing such a solution, there are two basic issues that manufacturers must address: finding the right mix of freight carriage, inventory and warehouse services and finding the best price for each one.

Logistics software can help by providing an analysis of service combinations in relation to individual service cost. For small to midsize companies that deliver goods from the assembly line directly to retail outlets, logistics software can offer a basic analysis of routing options and freight rates. But companies that use multiple warehouses and multiple supply chain locations may require more, such as production scheduling analysis that develops manufacturing plans with regard to multiple supply chain locations (i.e. company’s whose products are assembled at more than one location before reaching the retailer).

The basic advantage of logistics software is that offers refined shipping solutions that meet the needs of a variety of manufacturing situations (and does so at a lower cost than hiring a third party logistics provider). For example, some solutions may focus on a particular freight carriage issue, such as analyzing how to increase delivery time by studying construction schedules and highway traffic data, while other solutions may focus on offering an integrated solution for all logistical concerns, including carrier loading, weight distribution, cube optimization and shortest path to destination. Studies show that manufacturer’s who implement logistics software regularly realize a 10 percent decrease in shipping costs after the first year.

Whether your company has its own trucking system or uses a third party, logistics software can help reduce your delivery costs without compromising punctuality, efficiency or freight safety. If you need to simplify your delivery process and reduce your cost of shipping, consulting with a logistics software provider is the best way to arrive at a solution that accomplishes both at the same time.

Logistics Software on Freight Load Boards: An Overview

Freight matching load boards are one of the ways the Internet has transformed the auto transport business. Instead of labor-intensive pre-digital systems that rely on phone communication and physical record-keeping, online load boards allow truck operators, brokers and shippers to instantly deliver quotes and bid for jobs. Another major advantage of online boards is the ability to integrate logistics software, allowing carriers to plot routes and track all kinds of useful statistics automatically, right through the online interface. This article is a basic introduction to integrated load board logistics software.

Load boards aren’t just for freight carriers – shippers who have freight to transport can create accounts to post their job on the board, though they will see a different interface than either brokers or carriers. Advanced boards have the ability to provide quote estimates that they compile based on past transactions conducted on the board, to help the shipper anticipate and budget costs. When shippers post jobs, brokers and carriers can view them to optimize truck loads and bid on the contracts.

As we mentioned earlier, implementing load boards online also makes it possible to implement advanced computerized logistics solutions, and this is exactly what the industry has done.

If you ever wondered how auto transport carriers pick the best routes, they do it by using truck mapping, routing and mileage software that selects the optimal path automatically. For a modern business that relies on transportation – not just trucking companies, but supermarket chains and many others – logistics software is a necessity. Large companies often have heavily-customized in house solutions; however, most auto transport carriers are relatively small businesses, so as an extra service, most online auto transport boards provide truckers access to logistics software as part of their membership.

While there is a variety of logistics programs on the market, most boards active today incorporate the PC*MILER software by ALK Technologies. Other route planning and mileage tracker software includes Viamente Route Planner, Telogis logistics suite, TruckMiles by ProMiles software and a number of others.

Integrated logistics software allows a board member to plan routes, estimate gas usage and track mileage – all important steps in giving the customer an accurate quote that reflects current fuel prices and won’t obliterate the carrier’s profit margin.

Moreover, logistics programs, including load board integrated ones, aren’t limited to calculating routes – with GPS tracking, they can also pinpoint the location of a vehicle and calculate the number of miles actually traveled, average speeds, fuel efficiency and much more. These features are great for carrier financial calculations, bookkeeping and efficiency improvements.

Routing software can contain helpful features for the carrier operator as well – while in transit, the driver can connect to the app and check traffic and road condition information from the 511 service in states and localities where it’s available.

These are only some of the great benefits that integrated logistics software can provide to transport carriers and truck operators. Learning to use this software to save gas and money, and improve workflow efficiency is crucial to your company’s success as a freight carrier.