| Product transportation is an inevitable part of the | | | | provider is more expensive than using this software. |
| manufacturing business. Whether the goods are | | | | Just as logistics experts can act as transportation |
| shipped locally, nationally or internationally, they have | | | | brokers, determining the timeliest way to get |
| to reach retailers in order to produce business. | | | | products to retailers and save companies money by |
| However, as important as transportation is, | | | | eliminating MS software costs, 3PL costs, annual |
| companies often overlook the opportunity to reduce | | | | software maintenance costs, gain shares, freight |
| shipping costs. While the bulk of a manufacturer's | | | | margins and common rate base licensing costs, so |
| bottom line is predicated on the quality and price of | | | | can logistics software. The only difference is that |
| its products, reducing transportation costs can reduce | | | | logistics software is a more cost effective means of |
| a company's operating costs by thousands of dollars | | | | implementing logistics. |
| a year. Unfortunately, most companies lack the time | | | | One example of how large companies can profit |
| and resources to determine optimal shipping | | | | from logistics software involves choosing a more |
| procedures. That's why many companies now use | | | | "expensive" means of transport over a less |
| transportation logistics software to help reduce | | | | expensive means to reduce overall shipping cost. For |
| shipping costs. | | | | example, while air shipping rates are typically more |
| Also known as logistics management software, | | | | costly than ground rates, companies whose products |
| transportation software specializes in offering | | | | make various warehouse stops can actually end up |
| integrated shipping solutions that are tailored to a | | | | paying enough warehouse fees that shipping by air |
| company's specific needs. For small companies that | | | | becomes the less expensive option. In addition, by |
| have simple shipping procedures, the software can | | | | cutting out the warehouse stops, a company's |
| be used to improve delivery time by studying such | | | | shipping process becomes timelier. An example of |
| factors as road construction and highway traffic | | | | how logistics software can benefit small companies |
| patterns. But for larger companies whose shipping | | | | can be found in LTL shipping. Companies that |
| process is complicated by multiple assembly locations | | | | commonly ship less than one full truckload of |
| and warehouse needs, the software can combine | | | | products often ship by mail carrier. However, when a |
| disparate elements of the shipping process into a | | | | partial load is shipped LTL, multiple partial load shippers |
| single, integrated shipping solution that saves | | | | share the shipping cost, which can be significantly less |
| significant time and money. | | | | than shipping by mail. Whether or not to implement |
| In many cases, large manufacturers opt to hire a 3rd | | | | logistics software is not a debate about |
| party logistics provider to implement logistics solutions | | | | effectiveness, but about shipping management and |
| on their behalf. While studies show that companies | | | | cost savings. In terms of the latter, companies |
| can cut shipping costs by ten percent after one year | | | | always benefit from implementing logistics software |
| by either hiring a 3rd party logistics provider or | | | | versus hiring a 3rd party logistics expert. |
| implementing logistics software, hiring a logistics | | | | |