| Many companies start small and only deliver their | | | | charge shipping companies a service rate that is |
| goods locally for a number of years. But when a | | | | above the discounted rate, profiting from the price |
| company grows to the point that it becomes | | | | differential. In addition to resulting in unnecessary |
| interested in shipping its goods to remote locations, it | | | | expense, this arrangement also narrows the TL |
| must find a way to ship goods in a timely, cost | | | | shipping solutions that companies can pursue. Because |
| effective manner. In some cases, growing companies | | | | 3PL providers only work with carriers that offer a |
| try to negotiate their own truckload (TL) | | | | preferred discount, their clients could miss out on |
| transportation management solutions. But in order to | | | | shipping solutions that would be the best overall fit |
| arrive at the most favorable truckload transportation | | | | for their shipping needs. |
| management solutions, companies usually require the | | | | When companies choose logistics-software over 3PL, |
| aid of transportation logistics in the form of either full | | | | they remove a 3PL provider's business interest form |
| truckload logistics software-also known as freight | | | | the logistics process, allowing them to arrive at TL |
| transportation software-or by contracting with a third | | | | shipping solutions that make the most sense for their |
| party logistics (3PL) provider. In either case, | | | | company and not a 3PL provider's profit margins. |
| companies can expect to realize logistics solutions | | | | Although the financial benefits that come with |
| that are superior to solutions that they would arrive | | | | implementing logistics-software versus contracting |
| at on their own. However, when saving on shipping | | | | with a 3PL provider are well known, some companies |
| costs without compromising delivery time is the | | | | retain the misconception that implementing logistics |
| ultimate goal, many companies decide to implement | | | | software involves hiring logistics professionals to |
| full truckload logistics software. | | | | operate it. On the contrary, logistics software |
| To understand the superiority of truckload logistics | | | | features a user friendly interface that is customized |
| software to 3PL, it helps to understand how 3PL | | | | to reflect a company's shipping needs. Available as |
| providers conduct business. A management based | | | | either an online application or as an internal application, |
| 3PL provider essentially functions as a middleman | | | | full truckload logistics software allows growing |
| between a shipping company and a carrier company. | | | | companies to go from relying on 3PL to being their |
| In order to profit from their arrangement, 3PL | | | | own logistics provider. According to recent research, |
| providers search for carrier companies that offer | | | | companies that implement logistics software can |
| discounted freight shipping in return for 3PL providers | | | | reduce their total annual shipping costs by 10 percent |
| delivering a constant stream of business. With the | | | | after only one year. |
| discount in place, third party logistics providers then | | | | |