For companies that don’t have in house logistics experts, the question of how to handle the logistics of the shipping process often leads to contracting with a third party logistics (3PL) provider, a solution that rarely leads to a broad range of shipping solutions yet still costs more than implementing logistics software-also known as freight management software-which functions as a logistics expert and allows companies to choose from among recommended shipping options using a user friendly interface. While logistics solutions besides freight management software aren’t inherently bad, they’re usually more expensive and less thorough. Below, we take a look at some signs that indicate that your company could benefit from switching to a logistics software solution.
Feeling Disconnected From a 3PL Provider
The biggest complaint of 3PL customers about doing business with 3PLs is that the line of communication between provider and customer seems anything but fluid. While not having a talking business relationship with your 3PL provider isn’t necessarily a sign that your shipping process could be better, it is a symptom of how 3PLs do business: remaining at their position atop the logistics function by withholding logistical information. If you’d really like to know what your 3PL provider isn’t saying about your true range of shipping options, a logistics software solution will provide the answer.
Contracts With More Than One 3PL Provider
If you have a limited budget or are trying to save money on shipping logistics, you may have two or more contracts with standard 3PL providers and/or service developers, which means that you don’t have an integrated approach to your shipping process. Although specialized service oriented 3PLs can match your needs with carriers, they don’t integrate carriers for improved delivery time and decreased shipping cost. With freight management software, you have the opportunity to integrate all shipping methods (road, rail, air and sea) to improve delivery time and reduce cost of delivery.
Broken Freight on Arrival
While its rare to never experience broken freight, some companies experience it more than they should because they ship with a carrier that isn’t designed to handle it. Part of freight optimization is ensuring that freight is properly stacked right and shipped with other types of freight (especially in LTL shipping) that won’t cause damage. If you experience broken freight on a regular basis, chances are that there’s a problem with your shipping process that can easily be optimized with freight management software.
Feeling No Control Over Your Shipping Process
Because the cost of shipping is one the biggest expenses that shipping companies incur, every shipper should have as much control over its shipping process as possible. When shippers contract with 3PL providers, they relinquish control of the shipping process, putting themselves in the position to be overcharged and uninformed. Freight management software allows companies to become their own logistics providers, regaining control of their shipping process and saving money at the same time.