| If you are a small to midsize company that tries to | | | | online software application for an affordable monthly |
| ship your goods without the aid of transportation | | | | fee. In other words, when you opt for 3PL, you end |
| logistics, you'll likely end paying significantly more for | | | | up paying more because you pay for an expert to |
| shipping than you would if your hired a third party | | | | manage your account, whereas logistics software |
| logistics (3PL) provider or implemented online | | | | lets you manage your own freight logistics through |
| transportation and logistics software. Without the aid | | | | an easy to use interface. Essentially, 3PL providers |
| of freight logistics, the cost of the shipping process | | | | make their money by charging you for a logistics |
| can prohibitive for small to midsize companies for two | | | | service that you could easily perform on your own |
| main reasons: they either pay full truckload FTL | | | | with the aid of logistics software. It's as simple as |
| shipping (full truck load) rates to ship partial loads or, | | | | that. |
| realizing the economic disadvantage of FTL shipping | | | | Level of Control |
| for partial loads, they use parcel shipping, which is | | | | When you outsource a service that isn't one of your |
| also a disadvantage when shipping multiple parcels on | | | | company's core competencies, you're naturally at the |
| a regular basis. In response to these situations, 3PL | | | | mercy of the company that you outsource to. This is |
| and transportation and logistics software can | | | | not to say to that 3PL providers are out to profit on |
| revolutionize a company's sipping costs by providing | | | | their clients' lack of logistics expertise in an ulterior |
| them with options such as LTL shipping (less than | | | | way. But it does mean that 3PL providers are always |
| truckload), integrated transportation methods based | | | | looking for LTL shipping rates and other shipping |
| on competitive pricing and shorter shipping routes | | | | options that offer the greatest price differential |
| based on route analytics. | | | | between what the options actually cost and what |
| But while 3PL and logistics software function in the | | | | they charge their clients to secure those options. In |
| same capacity, the latter has two basic advantages | | | | some cases, the greatest price differential might |
| over the former, beginning with price differential. | | | | result from shipping your goods with a company that |
| Price Differential | | | | doesn't have the best reputation; a situation that you |
| Although 3PL and logistics software companies serve | | | | could easily avoid if you opt for logistics software. In |
| the same purpose, they are principally different in | | | | addition to allowing more control over what |
| their corporate make up. Third party logistics | | | | companies you ship with, logistics software also |
| providers are freight logistics experts that act as | | | | allows each of your company departments to |
| middlemen between manufacturers and shipping | | | | participate in the shipping decision process by |
| companies, while logistics-software providers are | | | | accessing the software online, which can prove |
| freight logistics experts that specialize in creating | | | | extremely valuable from an accounting and |
| freight logistics software, which they offer as an | | | | management perspective. |