The Disadvantages of Hiring a Third Party Logistics Service

Whether your company ships its products locally,financial advantage of freight transportation software
nationally or globally, the price that it pays foris that you aren't dealing with a logistics provider that
shipping depends heavily on logistics. From fuelmakes money off of the price differential between
surcharges to warehouse fees, logistics managementwhat you pay for logistics and the actual cost of
focuses on every aspect of the shipping process inshipping your goods; instead, you're dealing with a
an attempt to accomplish two things: the delivery offreight logistics software company that makes
products in a shorter period of time and the deliverymoney by providing a software application for a
of products at the lowest cost of shipping. Tomonthly fee, which essentially means that you cut
accomplish these goals, many companies turn to aout the middle man and reap the full financial benefit
third party logistics service (3PL); a company thatof logistics.
works with small to midsized companies to transportAlthough 3PL providers do help companies ship their
their freight by land, sea or air. In most cases, 3PL'sgoods in a timelier, less expensive manner than if
make the majority of their profits by consolidatingthey shipped their goods using parcel carriers or FTL
freight from different companies and receivingproviders, 3PL nonetheless profits off of companies
discounts from less than truckload carriers (LTL),whose size necessitates that they look for the most
airlines or expedited shipping companies, meaning thataffordable shipping options, including the price required
3PL's essentially profit from not passing discounts onto discover and secure those options. By using
to their customers. Nevertheless, 3PL companies dofreight transportation software, small to midsized
provide an essential service for companies that can'tcompanies can realize the same logistical benefits
afford their own shipping fleet or full truckloadprovided by a third party logistics service at a
shipping (FTL). In fact, the only way that most smallsignificantly lower price, as well as exert more control
to midsized companies could do without 3PL is if theyover the logistics process. As an online software
had the ability to conduct their own freight logistics.application, freight transportation software can be
Today, small to midsized companies have this abilityaccessed from any online computer terminal, allowing
when they choose freight logistics software overeach of company's departments to apply its
hiring a 3PL. Freight logistics software-also referred toexpertise. Whether you ship your products locally,
as freight transportation software-has severalnationally or globally, freight transportation software
advantages compared to 3PL, with the most obviousputs the power of logistics in your hands in an easy
one being price difference. Freight transportationto understand module, allowing your company to
software is an online computer application and isreduce its shipping costs by as much as 10 percent
priced accordingly, whereas 3PL providers serve asafter the first year of use.
logistics experts and cost significantly more. Another