Six Benefits of Implementing a Software-Based Logistics Management Program

A logistics management program-also referred to as a transportation management program-is a comprehensive approach to managing every aspect of the logistics process while developing innovative shipping solutions that save time and money wherever possible. A logistics management program is achieved in one of three ways: hiring a team of in house logistics experts, hiring a third party logistics (3PL) provider or implementing third party logistics software.

Hiring a team of experts is usually too costly for small to midsized companies, and hiring the type of 3PL provider that would implement a comprehensive, innovative logistics management program is usually too costly as well. But implementing logistics software allows companies to develop a comprehensive, innovative management program without the aid of paid professionals. Logistics software does the work of a logistics expert, meaning that its users don’t need to possess logistics expertise. Instead, they use a user-friendly interface to choose from among recommended shipping solutions for every area of the shipping process. Below, we list six benefits that shippers experience after implementing logistics software.

Reduction of Expedited Order Costs

Expedited shipments can significantly drive up the cost of shipping if they occur on a regular basis; and without a comprehensive logistics solution, they typically do. Logistics-software allows shippers to reduce expedited shipments through better shipment planning and system directed exceptions handling, which resolves exceptions before they necessitate an expedited shipment.

Increase of Load Consolidation

Upon implementing logistics-software, shippers immediately realize the ability to consolidate parcel shipments into less than truckload (LTL) shipments, as well the ability to consolidate LTL shipments into truckload (TL) shipments, each of which significantly lessens annual shipping costs.

Automation of Carrier and Mode Selection

When companies automate the selection of the best carrier and the best shipping mode, they save money in terms of both saved time and saved manpower, especially considering that logistics software immediately pairs optimal carrier and optimal mode selection.

Identification of Invoice Discrepancies

Searching for discrepancies in invoices on your own can be tedious and time consuming. But logistics software can instantly compare the audit of a freight invoice against the shipping contract, allowing you to never pay for services that weren’t rendered as promised or that were rendered in violation of the shipping contract.

Tracking of Carrier Performance

Tracking a carrier’s performance can help you negotiate better rates. Logistics software provides information on a carrier prior to your forming a contract with them, which can allow you to receive a lower rate if, for example, a carrier’s promised delivery times average a few minutes or more less than the promised times.

Reduction of Product Breakage

Regardless of the cost effectiveness of shipping routes and load arrangements, a company doesn’t profit from an economical shipping process if its products regularly break en route. Logistics software solves this problem by connecting shippers with carriers that offer the right mixing and stacking strategies for a particular type of freight.

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.

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.

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.