Transportation management is a subset of supply chain administration that is dedicated to overseeing shipping operations for companies that ship and receive goods. A transportation management system is responsible for finding routing solutions for inbound and outbound shipments. How the system operates depends on the logistics resource that is used to facilitate it. Most companies use one of the following resources to facilitate shipping administration:
- In-house logistics department
- Transportation management software
- A Third Party Logistics (3PL) provider
Each option is capable of rendering the necessary resources for overseeing the shipping process, including freight audit services. However, the second resource, logistics software, offers an ideal combination of low cost and control over the shipping process. If you are considering using a logistics program to facilitate your company’s shipping operations, but you need more information about the product, the answers below will help:
Can the product be implemented on a web-based model?
The product can be implemented on a web-based model or an in-house model. Because implementing it on an in-house model requires purchasing the product and paying to install it, implementing it on a web-based model is the most cost effective choice.
Can the product meet the needs of a unique shipping process?
The product is tailored to meet the needs of the customer’s shipping process. This means that the system for one company may not have the same options as the system for another company. For example, one company may need freight audit services, while another company may not.
What functions does the product facilitate?
Transportation management software can be programmed to facilitate any function associated with shipping management, including planning and decision making functions, transportation execution functions, transport follow-up functions, and measurement functions.
Does the product help reduce shipping cost?
According to research, the product can reduce shipping cost by roughly ten percent after the first year, and continuing to use the product will generate increased savings. The product also reduces the overall cost of shipping by offering a logistics solution that costs less than 3PL or an in house logistics department.
How does the product compare to 3PL?
It is superior to 3PL in at least three ways:
- The shipper has control over the shipping process
- It costs less to use than 3PL
- The shipper has a wider range of carrier options
3PL is the traditional alternative to operating an internal logistics department, but logistics software allows companies to become their own logistics providers without the cost of operating a conventional logistics department.
Logistics software is an excellent solution for shippers that need to save money on shipping operations. Shipping management can also be performed by an in-house logistics department, or by a 3PL provider, but neither option is as affordable as logistics software, and using a 3PL provider makes many shippers feel as if they do not control the shipping process. To learn more about using transportation management software for freight audit services and other logistical needs, contact a provider of web-based logistics solutions today.