For small to midsize companies that have full truckload shipping needs, full truckload logistics software-also referred to as TL logistics software-is quickly becoming the preferred method of transportation logistics. Traditionally, small to midsize companies that don’t employ logistics professionals have turned to third party logistics (3PL) providers to realize the optimal TL shipping solutions. But when companies learn how using TL logistics software can reduce the cost of the shipping process and offer more shipping options, they quickly see 3PL providers for what they are: logistics companies that act as middlemen in the shipping process. In other words, 3PL providers profit from charging their clients more for shipping options than they would pay if they chose the same shipping options through the use of TL logistics software.
Freight logistics software-also known as truckload logistics software-lets companies supreme control over the economy and timeliness of their shipping process by allowing them choose their own shipping options. When companies outsource to a third party logistics (3PL) provider, the provider develops shipping solutions that are in its best business interest, meaning that shipping companies can miss out on shipping options that would benefit them the most. Because logistics software is tailored to apply to a company’s unique shipping process and offers an easy to use interface, it does not require logistics expertise of its users. In addition, because logistics-software is offered on a SaaS model, it can easily be re-adapted to a company’s shipping needs as they change over time.
When a shipping company invests in logistics solutions, its main goal is to achieve shipping optimization, which focuses on expediting the shipping process while driving down its cost. But it’s important to realize that the cost of a logistics solution is also part of the cost of the shipping process. To achieve freight optimization, shipping companies have three choices: they can hire their own logistics experts; outsource their logistics needs to third party logistics (3PL) providers; or implement logistics software, which allows them to serve as their own logistics provider. For most companies, hiring their own logistics experts is the preferred solution, but not for the reasons that one might suspect. Compared to 3PL, which shippers regularly complain makes them feel distanced from their shipping process, an in house logistics department results in what every shipping company wants: total control over the shipping process. Yet, this is exactly what logistics software offers, and at a fraction of the price.