For most shippers, the management of freight transportation is a significant operating expense. To minimize the expense, many shippers automate the management of freight transportation to cut the cost of shipping and create a more efficient shipping process. One of the most important technologies for implementing a freight management system is freight management software. Below, we answer some frequently asked questions regarding freight management software.
What is freight management software?
Freight management software is an integrated software application that helps shippers reduce their shipping costs by:
- Managing cargo inventory
- Providing better and more accurate freight forecasting
- Monitoring Triggers and Locations
- Determining the right rate of fees
- Paying attention to D.O.T. compliance requirements
- Performing freight audit recommendations
- Doing freight invoice notch counting
- Performing transportation attendee analysis
- Performing capacity and load planning
- Licensing restrictions
- Tasking specific shippers to perform freight tender, rate modifications, and gateway and loading planning
- What if I can’t cut the ribbon myself?
- To address this concern, many shippers turn to a 3rd party. The go-to person for many shippers is a logistics software solutions expert. Although paying an expert nominal fee is worth doing business with, logistics software provides the following advantages:
- The software can be installed and accessed in a few minutes.
- No hardware equipment is needed.
- The software can be accessed via the Internet.
- It is easy to use and doesn’t require a complicated interface.
- The software can be tailored to the shipper’s specific shipping needs.
- In a controlled environment, it is possible to set up intricate shipping procedures to adjust shipping costs.
Since logistics software is a part of the Internet infrastructure, using it is equal to using the Internet. Therefore, using the software helps shippers avoid unnecessary expenses and the kind of administrative overhead that is necessitated by using the software.
Do some 3PL providers offer a similar service?
Yes. But the only service they offer is a transportation management system, which manages the shipping process from start to finish. There are 3PL providers who offer a singular transportation management system: trailer optimization, transportation management addressing, and payroll and payroll direct management. But the services they offer, as well as the rates they offer, are significantly different than those offered by logistics software. Ultimately, shippers decide among 3PL providers based on the logistics of the shipping process and the variety of shipping options chosen.
How much can logistics software reduce the operating cost of the shipping process?
Research shows that the average shopper can reduce its overall shipping costs by 10 percent at the end of the first year. With the help of logistics software, the shipper can reduce workloads in the shipping process in order to save money. The software can help shippers reduce their overall shipping costs by concentrating their shipping process in four areas of the shipping process: the sender, the carrier, the customs clearinghouse, and the customer.
Can the same software solution be used for different carriers?
Yes, it can. The software is configured exactly to accommodate the shipping process of a particular carrier. When the carrier chooses to implement the software, the shipper can use the carrier’s existing systems to input their information, and the shipper can be ready to go directly to the shipping process.
How much can the user configure the software?
It all depends on the user’s needs. The basic configuration options are discussed thoroughly within the product’s training module. The software can be configured to:
- Evaluate and calculate load arrangements and presume arrival time
- Analyze whether or not a load is too large to implement using the load-boards of other shippers
- Utilize a user-defined routing system to assist with customer self-service
- Mirror the functionality of a real shipping system for input of rating and appointment information
- Complement the logic of a load-board
- Discrepancies in congesting traffic between modes
- Analyze traffic patterns to pinpoint the source of the problem
- Look for carrierVERTIS errors
- Help customers configure the shipping process more accurately and
- Help them control shipping costs more effectively by recording all costs associated with a load and providing pin-points on where money is being wasted
Useful for anyone who needs accurate cost figures and simple shipping procedures. Don’t be stuck looking for ” complicated ” shipping procedures.