Logistics Software Solutions – How Do They Compare to Third Party Logistics?

Third party logistics (3PL) is the most popular choice for freight logistics among small to midsized companies. In order to help companies that regularly make shipments that are too large to financially benefit from parcel shipping and too small to financially benefit from full truckload (FTL) shipping, companies turn to third party logistics providers to get them the best deals on less than truckload (LTL) shipping, integrated shipping methods and to reduce the delivery of products to retailers. To these ends, 3PL providers significantly reduce their clients’ shipping costs compared to what they would spend on shipping without the aid of freight logistics. But they obviously do so by charging their clients for freight logistics services.

So, what’s not to like about hiring a 3PL provider to reduce your company’s shipping costs and ensure that your goods are delivered in a timelier manner? After all, is there really such a thing as realizing freight transportation solutions without seeking the help of freight logistics experts? Yes and no. If freight logistics isn’t one of your company’s core competencies, you’ll certainly need to get logistics solutions from those that specialize in providing them. But you don’t have to turn to a 3PL provider and pay a middleman to provide you with shipping solutions when you can instead use online logistics software.

The difference between 3PL and logistics software solutions-also referred to as logistics management software-typically doesn’t lie in one having more logistics expertise than the other; rather, it has to do with how the logistics information is supplied, how much it costs and how much control companies have over their shipping process. Essentially, a third party logistics provider uses logistics management software to provide you with shipping solutions, whereas online logistics software lets you act as your own logistics provider for an affordable monthly fee. In no case will you find a 3PL provider that offers their services for the low price that you pay for logistics software solutions, nor will hiring a 3PL provider offer you as much control over your shipping options.

Having complete control over your shipping process has two main benefits: you can research the companies that you’re considering hiring and you never have to deal with a middleman’s business policies affecting the price or availability of certain shipping options. Aside of the financial and shipping management benefits offered by logistics management software, its greatest strength is its extreme ease of use. Although the term logistics software implies computer expertise, logistics software comes with an easy to use interface that neither requires expert computer knowledge or expertise in logistics, meaning that each of your company’s departments can be involved in its shipping process.

Facilitate Greater Productivity With Custom Software Solutions

While building and deploying an advanced application, executives and managers need to decide between purchasing or developing a software. The turnkey software applications come with a series of standard features for performing a set of standard functions. Thus, if you are somewhat struggling to meet the business requirements with the existing software application, then a custom software solution can serve you the best.

Having a dynamic software architectural approach helps in increasing the efficiency level throughout the entire organization, thereby saving your company’s money. Thus, shifting your focus to deploy intuitive applications acts as the ideal choice that hosts the following benefits.

Improving Collaboration and Communication

It offers solutions which, ensure prompt communication at every phase of the organization. It means the employees will be able to share ideas faster and interact with multiple clients and vendors via a unified platform. Furthermore, it helps the management to track the workflows better, share strategies, financial data, presentations and business forecasts effectively and assign work to employees systematically.

Improving Efficiency and Productivity

This software architectural approach helps in encountering the unique problems and fix them through deployment of technology. These solutions help in improving the productivity including automation of the company’s shipping process, proper management of the human resource and payroll issues and allowing clients to make quick purchases via an eCommerce platform.

Implementing Newer Customization

These solutions help in transforming through customization as because it’s better to use a software which, fits the business goals and requirements instead of modifying the business goals to suit a turnkey solution. New customization helps the business to grow rapidly.

Facilitating Greater Integration

Organizations mostly deploy different programs for performing different tasks. But, with custom software solutions, you will be able to integrate with the multiple processes. As a result, it helps in performing the tasks easier which, needed the usage of a set of different programs earlier, thereby helping in simplifying the amount of data.

Improving Scalability

With the progress of a company, turnkey solutions are able to cope with the expansive business operations. However, these solutions help the company to deploy the programs effectively which, scale to support growth of the organisation.

Different businesses need different solutions to meet different requirements. On the contrary, turnkey solutions do not come with ability of meeting the diverse and demanding requirements of companies across all industrial domains. Thus, developing and deploying a custom software will help you to meet the specific business needs and streamline your business efficiently.

TL Shipping Software – What Can It Offer Growing Businesses?

If you own a small manufacturing business, there may come a time when you need to ship full semi trailer loads of goods-a process known as truckload (TL) shipping. Compared to less than truckload (LTL) shipping, where two or more companies that have partial loads combine them into a full load and share the price, TL shipping has two advantages: because products are shipped directly to their destination, delivery improves and the absence of warehouse stops reduces shipping cost. But to realize the TL shipping arrangement that best meets your needs, you’ll need to incorporate TL transportation logistics into your shipping process.

When companies need new shipping solutions, they typically secure logistics expertise in one of the following ways: hiring an in house logistics expert; outsourcing logistics needs to a third party logistics (3PL) provider; or implementing TL-shipping software, a specific type of logistics software that allows companies to arrive at TL-shipping solutions. Upon evaluating these options, you’ll discover that each of them has its advantages. But when it comes to improving delivery time while reducing shipping cost as much as possible, TL-shipping software is the superior choice. To understand why, its helps to understand the basic drawbacks of hiring in house experts or outsourcing to 3PL providers.

Having your own logistic expert isn’t a bad decision. In fact, it’s far preferable to outsourcing your shipping process to a 3PL provider that you rarely contact. Yet, hiring even one experienced logistics expert could set you back $90,000 a year-an unnecessary cost considering that TL-shipping software ensures that every potential TL shipping solution is analyzed prior to the recommendation of a best solution. Although having its own shipping fleet and logistics department may be your company’s final destination, there’s no need to pay for in house logistics before you need to when logistics software can do the same work at a fraction of the cost.

Unlike hiring a logistics expert, outsourcing to 3PL providers can cost you less than $80,000, but only if you hire a provider that offers individual shipping solutions and not a comprehensive, innovative approach to the shipping process. The types of 3PL providers that offer individual shipping solutions are two: standard 3PL providers, which offer basic shipping solutions; and service developers, which offer more specialized shipping solutions. Depending on your company’s needs, hiring a specialized 3PL provider could make sense. But if you want your shipping process, TL shipping included, to fall within the same logistics function, simplifying your shipping process with logistics software is the best option.