| Truckload logistics software is increasingly becoming | | | | management based logistics providers only work with |
| the logistics solution of choice among small to midsize | | | | carriers that offer preferred discounts, they |
| companies that don't employ logistics professionals. In | | | | potentially exclude carriers that could offer their |
| most cases, companies that don't employ logistics | | | | clients the best overall shipping solutions. When |
| experts or use logistics software turn to third party | | | | companies choose logistics software instead of |
| logistics providers to handle their truckload (TL) | | | | renewing their contract with a third party logistics |
| shipping solutions. Companies may choose third party | | | | provider, they have the opportunity view a full rage |
| logistics providers for a variety of reasons, but two | | | | of shipping options and choose those that benefit |
| factors that generally influence this decision are | | | | them and not a third party's business interest. |
| companies' perception that they can't handle their | | | | When you consider the factors that go into |
| own logistics and the corollary perception that only | | | | determining the best TL shipping solutions, that |
| companies that specialize in transportation logistics | | | | management based third party logistics providers only |
| could yield the most optimal TL shipping solutions. | | | | consider carriers that offer a preferred discount is |
| Converse to these perceptions is the fact that many | | | | shocking. For example, freight optimization, shipping |
| companies that lack core competency in logistics are | | | | route optimization and the potential for integrated |
| now acting as their own TL logistics providers by | | | | shipping methods are three bargain basement factors |
| using truckload logistics software. With an easy to | | | | that significantly influence the overall cost and |
| use interface and customizable options that reflect a | | | | delivery viability of a TL shipping solution. Unlike third |
| company's particular shipping needs, TL shipping | | | | party logistics, TL shipping software examines these |
| software offers companies an increased range of | | | | and other factors simultaneously, eventually |
| shipping options at a lower price than third party | | | | identifying the best carrier in relation to each factor. |
| logistics. | | | | Third party logistics is an expense that never goes |
| Perhaps the greatest advantage of third party | | | | away. Companies have no insight into their own |
| logistics is that allows companies to be free of the | | | | logistics process and therefore remain trapped at the |
| logistics process. However, the price that companies | | | | hands of profiteering logistics experts. But when |
| can pay for this negligible freedom can be costly. | | | | companies switch to TL shipping software, they don't |
| Management based third party logistics providers | | | | just get rid of the cost that comes with paying a |
| make their money by acting as middlemen between | | | | middleman; the increased range of shipping solutions |
| shipping companies and carrier companies, securing | | | | that they experience allows them to drastically cut |
| rate discounts from carriers and charging clients a | | | | their shipping cost. Research shows that companies |
| significant amount above the actual shipping cost in | | | | that implement logistics software can decrease their |
| order to make a profit. But in additional to simply | | | | total shipping costs by 10 percent at the end of one |
| costing more money than using logistics software, | | | | year. |
| third party logistics poses another problem: because | | | | |