| Although owning a small to midsize company can | | | | can also yield integrated shipping solutions or be used |
| allow you greater control over your business's daily | | | | to manage any form of transportation, including rail, |
| functions; if you own a small to midsize company | | | | air and sea. |
| that has shipping needs, chances are that you have | | | | To understand how TL logistics management |
| little control over the logistical aspects of your | | | | software saves you money compared hiring a 3PL |
| shipping process. Because most small to midsize | | | | firm, it helps to understand how a 3PL firm works. |
| companies don't have the payroll to hire logistics | | | | When small to midsize companies outsource their |
| professionals or construct an internal freight council, | | | | truckload logistics to a 3PL provider, the typical |
| they are left with two options for truckload | | | | truckload solution is less than truckload (LTL) shipping, |
| transportation management: relying on warehouse | | | | where two or more shippers ship partial loads that |
| management and/or purchasing personnel or hiring a | | | | create a full load and spilt the full load price. But 3PL |
| third party logistics (3PL) firm. Because truckload (TL) | | | | providers don't just go with the LTL carrier that |
| shipping solutions are a critical pricing element in the | | | | makes the most sense for their clients in terms of |
| freight shipping process, many companies prefer to | | | | LTL shipping concerns such as route length, |
| delegate transportation logistics to logistics experts | | | | warehouse fees, number of pick-ups and deliveries |
| and hire a 3PL provider. | | | | along the shipping route, etc. Instead, they begin by |
| When a company hires a 3PL provider, it almost | | | | identifying LTL carriers that will offer the best freight |
| always realizes TL shipping solutions that are more | | | | discount, which allows 3PL firms to make money on |
| cost effective than shipping solutions arrived at in the | | | | the price differential between what they charge their |
| absence of expert logistics. However, outsourcing | | | | customers and the discounted shipping price. |
| logistics is currently falling out of fashion, with the | | | | When companies use TL logistics management |
| main reason being that small to midsize companies | | | | software, they not only reduce the price of their |
| can become their own logistics provider by | | | | logistics solutions; they also realize a greater number |
| implementing TL logistics management software. | | | | of shipping options due to the removal of a 3PL |
| Unlike 3PL firms, TL logistics management software is | | | | firm's business interest from the logistics function. As |
| not priced as an expert logistics service, but as an | | | | an example of how much money companies can |
| online or internal software application (depending on a | | | | save from using TL logistics management software |
| company's preference) that can be customized to a | | | | instead of 3PL providers, research shows that |
| company's unique shipping needs. In addition to | | | | companies can reduce their total shipping costs by 10 |
| providing truckload management, logistics software | | | | percent after one year of using logistics software. |