Logistics Software is the Ultimate Transportation Management Program

It's difficult to think of an area of business that hasn'tsoftware effectively places the power of the
benefited from SaaS offerings. And if you own alogistics function in the hands of shipping companies
manufacturing company or plan on starting one, youby providing an easy to use customer interface,
may be familiar with truckload transportationmaking it an ideal transportation management
management software, a form of logistics softwareprogram.
that is available on both a SaaS model and as anCompanies Receive a Comprehensive Logistical
internal software solution. The value of logisticsApproach
software is typically discussed in relation to thirdThere are four types of 3PL providers: standard 3PL
party logistics (3PL), with its main benefits being thatproviders, service developers, customer adapters and
it offers logistics solutions at a significantly lower pricecustomer developers. But only customer developers
than 3PL while offering more shipping options.offer a comprehensive approach that results in new
Logistics software offers the same logistics expertiseshipping solutions. The problem? Cost wise, hiring a
as 3PL providers for a lower price because it's pricedcustomer developer is essentially like hiring your own
as a software service and not as a logistics consultingteam of logistics professionals. And if you can't
service. It offers a broader range of shippingafford that, then hiring a customer developer is a bad
solutions because it doesn't act as a business entitydecision as well. Companies hire standard 3PL
that prefers its own shipping solutions or the solutionsproviders and service developers when they have a
of its associates. But there are also other benefits ofspecific need, but not when they when they want
using logistics software instead of 3PL; below, wethe best systematic shipping process; and customer
take a look at three reasons why logistics softwareadapters are hired by companies that simply want
is the ultimate transportation management program.their shipping process "managed".
Companies Can Become Their Own LogisticsCompanies can Significantly Reduce their Annual
ProvidersShipping Costs
When shipping companies get large enough, theyResearch shows that companies that implement
usually purchase their own shipping fleet and hire alogistics software can reduce their annual shipping
team of logistics professionals to oversee it. But forcosts by 10 percent at the end of the first year.
small to midsize shipping companies, the financialWith the aid of logistics software, shippers typically
necessity of outsourcing logistics means that theypay more than they need to in freight transportation
have to maintain a relationship with a 3PL that 3PLand a variety other costs commonly associated with
clients regularly characterize as being distant andthe shipping process, including but not limited to: TMS
disconnected, and it's easy to see why. If you aren'tsoftware costs, annual software maintenance costs,
a logistics expert, it's difficult to maintain a businessgain shares, freight margins and common rate based
dialogue within someone who is. But logisticslicensing costs.