Logistics Software Allows Shippers to Conduct Their Own Freight Optimization

If you plan on starting a manufacturing business orCarrier selection commences with identifying and
currently own a manufacturing business that needsevaluating specific carrier companies.
new shipping solutions, a critical part of maximizingLogistics-software evaluates these companies
your bottom line will be arriving at shipping solutionsaccording to the price and delivery efficiency of their
that offer the best delivery result at the lowest cost.shipping options. Commonly realized shipping options
To arrive at such solutions, shipping companies haveinclude LTL shipping solutions, TL shipping solutions
three basic options: they can hire an in house logisticsand a combination of TL and LTL shipping solutions.
team; they can outsource their logistics to third partyCarrier selection also results in integrated shipping
logistics (3PL) providers; or they can implementsolutions between water, air and land carriers to
logistics software. For small to midsized companies,offer the best shipping price and delivery time.
the cost of hiring in house professionals is oftenTransportation Route Design
prohibitive, leading them to outsource their logistics.As a part of the carrier selection process, logistics
But before you outsource logistics, its important tosoftware allows companies to identify transportation
know that most 3PL providers adhere to rigidroutes that decrease shipping cost and improve
shipping heuristics, making them a poor choice fordelivery time. The transportation route design
companies that want innovative shipping solutions.process entails three basic steps: discovering the
Logistics software, on the other hand, allowsfastest routes, discovering carriers that match
companies to realize innovative shipping solutions onshipping volume and negotiating rates with carriers
their own. By accessing a user-friendly interface,and confirming shipping capacity.
companies can conduct freight optimization withoutRoute Execution and Management
possessing logistics expertise. When you implementAfter your company has chosen carriers based on
logistics software, the software acts as a logisticsshipping route analysis and carrier offerings,
expert and guides you through the phases of thelogistics-software allows you to perform route
freight optimization process, which we describeexecution and management. During the route
below.execution and management process, logistics
Channel Selection and Developmentsoftware offers two essential benefits: it allows you
Channel selection and development begins withto function as a shipping captain, monitoring your
identifying shipping channels that have strongoverall shipping network performance; and it allows
matching potential to your companies shipping needsyou to perform customer service and conduct billing
according to various criteria, including: freight volume,and reporting. If you currently outsource your freight
shape of freight and freight destination. Afteroptimization needs to a 3PL provider, consider
performing channel selection, logistics software aidsimplementing logistics software today. Research
shippers in identifying and enlisting carrier companiesshows that companies can reduce their annual
that carry a high volume within a company's idealshipping costs by 10 percent after the first year of
shipping channels.implementing logistics software.
Carrier Selection