Freight Management Software: Frequently Asked Questions

For most shippers, the management of freight transportation is a significant operating expense. To minimize the expense, many shippers implement a management resource that eliminates the need for a traditional logistics department. One such resource is logistics software, which allows companies to perform the logistics function using an online or in-house software program. If you are considering implementing logistics software, but you have questions about its functionality, effectiveness, and benefits compared to other logistical resources, the answers below can help:

Are there different types of logistics software?

Yes. Logistics software is a general name for applications that serves as logistical resources. For example, one application may pertain to supply chain management; another one may pertain to inventory control; and yet another one may pertain to both disciplines. The software is built around the unique needs of a shipper, not implemented as a one size fits all solution.

Must users of the product possess logistical expertise?

Users need not be logistics experts, as the application performs the calculations that an expert would perform. However, a proficient understanding of the shipping process is necessary to understand the functions and scope of the application.

What are the goals of implementing the product?

Different shippers have different logistical goals. There are three reasons why every shipper implements Transportation Management Software (a.k.a. TMS): to identify shipping arrangements that offer the best delivery time, the best freight care, and the best shipping rates.

How does using the product compare to using a freight broker?

The greatest difference between logistics software and freight brokerage is that the former allows shippers to make their own shipping arrangements, whereas the latter requires a freight broker to make the arrangements. For this reason, using a freight broker is typically the more expensive option.

If you need to manage the shipping process without the assistance of a traditional logistics department, logistics software is the ideal option. If you prefer to outsource shipping management, freight brokerage is the ideal option.

How much money can a shipper save by implementing the product?

The amount a shipper saves by using logistics software depends on three things: the cost of maintaining the logistical resource that is replaced, the quality of logistics the previous resource provided, and the particular cost factors of the shipping process.

After one year of using the software, most shippers reduce their shipping expense by at least 10 percent.

How long does it take to implement the product?

Transportation Management Software that is tailored to the unique needs of a shipper can be implemented 30-45 days from the first consultation.

Conclusion

For most shippers, freight transportation management is a major expense, but implementing a TMS product can reduce the expense by at least 10 percent after one year. If you need a comprehensive logistical resource that lets you manage the shipping process, but creating an in house logistics department is not feasible, implementing logistics software may be the answer. To learn more about its benefits, contact a provider of SaaS logistical solutions today.