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.

Transportation Management System Logistics: Evaluating Your Options

Research shows that a freight transportation management system can cut the cost of shipping by up to twenty-five percent in the first year, but for many shippers, implementing a system for managing freight transportation can impose financial hardships. Traditionally, such experts perform transportation management – an expense most small and midsize businesses can ill afford (hiring these experts can bring a six-figure payroll increase).

How can shippers manage freight distribution without hiring an expensive team of experts?

Traditionally, the answer has been to outsource to Third Party Logistics (3PL) providers-entities that set shipping arrangements between shippers and carriers. In theory, 3PL is a beneficial arrangement for shippers that do not staff experts because the logistics function is outsourced, and the need to hire experts is eliminated. However, for companies that need or prefer more control of the shipping process, using a 3PL provider can be frustrating.

When they opt for 3PL, shippers relinquish a degree of control over the shipping process. Depending on the quality of the 3PL provider’s logistics resources, the price of the relinquishment can be steep. Good 3PL providers leverage a variety of resources to identify the best carrier arrangements, but many 3PL providers use limited resources -a fact that their customers remain unaware of.

If you use a 3PL provider whose resources are limited, your ability to negotiate the best carrier arrangements is also limited.

Replacing 3PL

If your business needs to save money on transportation management, 3PL is a fair option, but it is not as affordable or empowering as logistics software-a class of applications that perform the logistical calculations traditionally performed by experts. By replacing 3PL with a program that provides this function for a Transportation Management System (TMS), you can resume control of the shipping process and reduce your costs in two ways:

  • By paying less for the program than you pay for 3PL
  • By negotiating better carrier arrangements via expanded shipping options

Research shows that TMS software can reduce the cost of freight transport by ten percent in the first year. For many businesses, such a cost savings can be a financial life raft, but receiving it requires a decisive step in a new direction-implementing a TMS application instead of renewing a 3PL contract. When they learn how painless the changeover can be, most shippers are ready to make the switch.

Easy Implementation

TMS applications are designed to support the existing shipping process. Before supplying an application, the provider analyzes a business’s shipping process in depth, creating a program that addresses each need. As the needs change, new options can be added to the existing options, creating a program that evolves with the shipping process.

TMS applications are available on a web-based model or an in-house model. To simplify the implementation process, acquire remote system access, and preserve investment capital, most businesses opt for the former. To learn how TMS software can improve the economy and efficiency of your business’s transportation management system, contact a provider of logistics software today.

LTL Software: A Short Overview

In the absence of good logistics resource, small shippers often overpay to ship small loads. The conventional mode of freight shipping, truckload (TL) shipping, is geared toward shippers that can fill a whole semi trailer with cargo. Although small shippers can use TL shipping, they do so at a loss: the trailer is partially filled with freight, but the shipper still pays to ship a full load. In search of an alternative to TL shipping, many shippers resort to one of two resources: LTL software – a type of logistics software that allows a small shipper to select its own carrier options and perform its own freight audit; or Third Party Logistics (3PL) – a model of transportation logistics in which one or more shipping functions are outsourced to a third party.

Logistics Software Versus 3PL

The problem over which is better, logistics software or 3PL, is not new, or easily resolved. Depending on the needs of a shipper, and how it prefers to handle the shipping process, either option can be sensible. However, logistics software offers important advantages for small shippers that need an economic, comprehensive approach to freight logistics. Below are four of these advantages:

Potential to Ship With Any LTL Carrier

Many 3PL providers select carrier arrangements using an electronic posting system, in which available loads are paired with available carriers. Electronic posting systems can reveal cost-effective carrier options, but they should not be the only resource for selecting a carrier, as not all carriers use them.

When a shipper uses LTL software, it can realize a greater number of shipping options than it can realize through a 3PL provider.

Cost Effective

Using a 3PL provider to perform a freight audit and other logistical tasks is not as economical as performing them with logistics software. The software allows the shipper to become its own logistics provider and avoid paying high fees to third party logistics experts.

No Need to Form New Contracts

Shippers that use 3PL providers often move from provider to provider as their shipping needs change. For example, a shipper may initially contract with a service developer to receive one or more specific services, and later contract with a customer developer when it needs comprehensive shipping management.

Moving from one 3PL provider to another can be administratively burdensome, as the changeover can involve altering how the shipping process is managed internally. When shippers use logistics software, they can accommodate evolving shipping needs by adding new options to the system, ensuring a smooth transition between changes in the shipping process.

More Control Over the Shipping Process

Using logistics software gives shippers more control over the shipping process than outsourcing to a 3PL provider does. In fact, one of the main complaints of shippers that use 3PL is a lack of control over the shipping process.


LTL softwarehelps shippers find economical shipping solutions, and perform crucial logistical tasks such as a freight audit. To learn more about the benefits of the software, contact a provider of logistics software today.

Affordable Supply Chain Solutions for Logistic Companies

Logistic companies always remain on the lookout for latest software solutions to streamline their operations in a cost effective manner. Feature rich logistic software available in the market today help to meet the desired standards of services as well as complies with the visibility requirements of shippers by automating the entire process.

Small or large shippers today not only demand efficient and timely service but also need updated status of their goods and shipments. Hence it is really crucial for logistic or freight forwarding companies to develop a robust supply chain visibility system that offers the best software solutions to clients and meets all operational needs. Accurate and up-to-date visibility of shipment status right from the booking of shipment to custom clearing and delivery is of utmost importance for shippers.

Freight forwarding companies need to upgrade their services with innovative software solutions to offer unmatched client services. Entire logistics operations including management of inventory, goods flow, asset management, warehousing and supply chain activities are better managed through state-of-the-art logistic software. In fact, logistics is an integral cost control area of supply chain and a comprehensive overview of the entire supply chain facilitates in better synchronization of logistics process that proves beneficial for logistics companies.

Management of logistics requires competence and expert knowledge. Logistics software solutions play a significant role in determining the success or failure of any logistic or freight forwarding company. The logistics management software provides options for strategy and planning as well as order management, procurement and return management and offers the perfect supply chain solutions to meet all issues with improved methodology and advanced technology.

Logistics companies understand that customer satisfaction is at the core of supply chain solutions and hence they take extreme care in satisfying customer needs by developing analytical process driven approach that focuses on customer value creation. These freight forwarding or logistic companies use logistics management software for rendering customized solutions. Supply chain management software is ideal for streamlining, systemizing, managing product distribution and inventory as well as keeping track of channels. Complete accounting and integration is important to meet every requirement and in managing minute details of logistic operations. The supply chain management software offers end-to-end solutions such as:

Integration of Operations

EDI integration with agencies and customers

Business analysis and intelligence

Supplier management


Messages and alerts of shipment

Back to back management or direct dispatch.

With high end, state-of-the-art technology and innovative software solutions, logistic
companies can easily handle various operations with greater efficiency and control. Separate software for each of logistics services like freight forwarding, transport, customs clearing, warehousing etc that are interconnected yet fragmented with little communication between them are obsolete. Today logistics and freight forwarding companies use integrated system that acts as a positive catalyst in enhancing the business growth and in improving its performances.

The Logi-sys software is one such software that integrates the entire logistic enterprise under a single platform. This web based modular software application with fleet management, accounting and inventory management modules is customizable with freight forwarding, customer service, PO management, supply chain integration and more. Right from quotation, inquiry, to booking, shipment and billing, all functions are integrated by this enterprise level application Logi-Sys. The system with different modules uses one unified database that facilitates various departments to communicate access and share information. It improves control and productivity within the logistic company and manages the business of 3PL companies, NVOCCs as well as international freight forwarders.