| There are two inherent challenges to running a | | | | logistics software is less expensive than 3PL is that |
| manufacturing business. The first is producing | | | | 3PL arrangements typically result in shippers being |
| products that will sell. The second is shipping those | | | | charged over and above the actual cost of shipping |
| products to retailers in a timely fashion at an | | | | solutions. When non-asset based 3PL providers |
| affordable price. If your company has mastered the | | | | secure shipping solutions for their clients, they |
| first challenge but is still searching for the ideal | | | | contract with carriers that offer a discounted rate, |
| shipping solutions, you may be on the brink of hiring a | | | | allowing the 3PL provider to profit from the |
| logistic. When companies hire a logistic expert, they | | | | differential between actual service cost and service |
| either hire an in house logistics professional or | | | | cost as charged. |
| outsource their logistics to a third party logistics | | | | In addition to being more cost effective than 3PL, |
| provider when their budget prohibits the former. If | | | | logistics software also allows companies greater |
| this describes your company, it's important to know | | | | control over their shipping process by providing more |
| that, while hiring a 3PL provider may be less | | | | shipping options. Most 3PL providers adhere to rigid |
| expensive than hiring an in house professional, there | | | | shipping heuristics to provide clients with shipping |
| is a logistics option that costs significantly less than | | | | options in the shortest amount of time. |
| 3PL, and it exists in truckload transportation | | | | Consequently, many 3PL clients end up with shipping |
| management software-also known as logistics | | | | options that meet their needs but don't offer the |
| software. | | | | best possible delivery time at the lowest possible |
| When companies hear about logistics software, they | | | | price. One example of how logistics software allows |
| often think that it requires logistics expertise. But it | | | | shippers to realize more shipping options can be seen |
| doesn't. Logistics experts tailor logistics software to | | | | in integrated shipping solutions. Whereas asset-based |
| meet a company's unique shipping needs and allow | | | | 3PL providers only offer as many shipping modes as |
| the company to meet and control those needs | | | | they have equipment to support them, |
| through a friendly user interface. There are several | | | | logistics-software allows shippers to integrate truck, |
| reasons why implementing logistics software is more | | | | boat and air shipping over the course of one |
| affordable than hiring a 3PL provider, beginning with | | | | transportation route. Whether your company's |
| the fact that logistics software is priced as a | | | | shipping needs are just emerging or have recently |
| software offering and not a consultancy offering. | | | | changed, don't pay more for freight shipping than |
| Although the companies that design logistics-software | | | | you need to. By implementing logistics software, you |
| are software companies, they employ freight logistics | | | | can become your own logistics provider and cut the |
| experts and are run by business veterans of the | | | | middleman out of the logistics function. |
| freight transportation industry. Another reason why | | | | |