| In the shipping industry, logistical solutions focus on | | | | address: finding the right combination of carriage, |
| stream lining the process of moving products through | | | | inventory and warehouse services and finding each |
| the supply chain. For large manufacturers, the shipping | | | | of them at the best price. Logistics software begins |
| process represents a significant expense, which | | | | by identifying the optimal combination of these |
| explains why such companies are now using logistics | | | | services and then analyzes them by price. In the |
| software-also known as freight transportation | | | | case of large companies whose shipping process is |
| software-to evaluate and improve the financials of | | | | complicated, the initial goal of logistics is to reduce |
| their shipping process. To benefit from logistics, some | | | | complexity by integration, while for smaller companies |
| companies choose to completely or partially | | | | whose shipping processes are simpler, a simple |
| outsource their logistical needs. In the first case, | | | | analysis of shipping rates and delivery routes may be |
| companies hire a third party logistics expert to | | | | sufficient. A complex shipping process is usually |
| oversee their shipping process. In the second case, | | | | defined by multiple warehouse stops and product |
| they hire logistics experts to manage particular | | | | assembly that occurs in various stages at different |
| stages in the delivery process. In each scenario, | | | | locations, while a simple delivery process amounts to |
| significantly minimizing the cost of the delivery | | | | products that travel nonstop to the buyer. |
| process and reducing delivery time is the ultimate | | | | Whether a company's shipping solution is simple or |
| goal. | | | | complex, freight transportation software offers |
| There are several factors that influence a | | | | solutions that benefit large companies and small |
| manufacturer's total delivery costs, including inventory | | | | companies alike. For example, logistics software can |
| fees, freight carriage fees and warehouse fees. But | | | | be used to analyze highway traffic patterns and the |
| instead of focusing one particular factor, logistics aims | | | | prevalence of construction zones along particular |
| to integrate each aspect of the shipping process into | | | | shipping routes. In addition, the software can be used |
| a single manageable solution. For example, in order to | | | | to analyze aspects of freight loading such as cube |
| make an impact in inventory, freight carriage, and | | | | optimization, best fit, vehicle loading and weight |
| warehouse fees, a company might decide to start | | | | distribution. Without the use of logistics, the smaller |
| shipping by air instead of by ground. While air shipping | | | | aspects of the shipping process often remain |
| is more expensive than ground shipping, it can | | | | unstudied and needlessly increase a company's |
| eliminate warehouse and inventory fees for | | | | shipping costs. Whether your company ships locally, |
| companies that ship long distance. Similarly, a | | | | nationally or internationally; according to recent |
| company might also switch from air shipping to | | | | research, hiring a third party logistics expert or |
| ground shipping where warehouse and inventory fees | | | | implementing logistics software can reduce your |
| are negligible. | | | | shipping costs by as much as 10 percent after the |
| In developing the best logistics solutions for your | | | | first year; and for most companies the percentage |
| shipping process, there are two chief issues to | | | | increases significantly thereafter. |