| The more products a company ships, the more | | | | multi-leg transport, cross docking, multi-compartment |
| shipping costs become subject to cost saving | | | | trailer planning and inventory management. |
| strategies. For most companies, realizing the most | | | | One example of how logistics software helps |
| economical shipping solutions depends on the | | | | companies reduce their shipping costs can be seen in |
| implementation of the most popular form of supply | | | | less than truckload (LTL) shipping arrangements. |
| chain software (SCS): logistics planning software. On | | | | Especially beneficial for companies that don't ship a |
| the most basic level, the solutions offered by logistics | | | | high volume of goods, LTL shipping allows companies |
| software improve a company's phased planning | | | | to pay a fraction of full truckload (FTL) shipping |
| measures, product sales forecasts and scientific | | | | costs. LTL shipping combines multiple partial |
| safety stock. Some companies hire 3rd party logistics | | | | truckloads into a full truckload and splits the full load |
| providers, but more and more companies are turning | | | | price between the shippers. For trucking companies, |
| to logistics software in place of 3rd party logistics | | | | LTL is beneficial because it draws in customers who |
| providers for two reasons: logistics software offers | | | | would traditionally ship their good by parcel carrier. |
| the same level of quality as 3rd party logistics | | | | Another example of how logistics software can save |
| providers and it offers it a much lower price. | | | | companies money is by examining the characteristics |
| When companies use logistics planning software, they | | | | of shipping routes. For example, while the shortest |
| can centralize and integrate their product delivery | | | | route might seem to be the fastest route, this |
| system by allowing drivers at different sites to | | | | software can reveal that a longer route would be |
| connect using the most efficient travel routes, which | | | | faster due the traffic characteristics of the shorter |
| increases product delivery time and decreases fuel | | | | route. |
| costs by reducing empty running. Regardless of which | | | | Without this software, most companies continue to |
| style of logistical planning a company needs to | | | | pay more for logistical solutions than they need to. |
| implement-inbound logistics, contract logistics, LCL | | | | While research shows that both logistics software |
| FCL, LTL/FTL, etc.-logistics planning software allows | | | | and 3rd Party logistics providers can help companies |
| companies to arrive at advanced planning and | | | | reduce their annual shipping costs by 10 percent at |
| scheduling solutions that can significantly increase their | | | | the end of one year, opting for this software adds |
| bottom line. By implementing this software, | | | | to the savings. When companies use logistics |
| companies can improve the cost effectiveness of | | | | software, they increase their bottom line in basic two |
| the following product distribution arrangements, | | | | ways: by delivering their products to the sales floor |
| among others: container planning and empty container | | | | faster and by reducing the cost of getting them |
| repositioning, intermodal transport, multi-hub and | | | | there. |