| Shipping products without the aid of logistics is like | | | | their services. Service developers perform |
| journeying to an unfamiliar destination without the aid | | | | transportation logistics as their core competency, but |
| of a map; eventually, you get there, but it usually | | | | typically emphasize in "value-added" services, such as |
| takes more time and money than you anticipated. | | | | cross-docking and specific packaging. Customer |
| Just as an uninformed driver makes more stops and | | | | adapters oversee a company's logistics process, but |
| takes more roads than necessary to arrive at his | | | | don't specialize in innovative shipping solutions. |
| destination, an uninformed shipping process results in | | | | Customer developers oversee the logistics process |
| freight making more stops and taking longer routes | | | | and do specialize in innovation solutions. But the price |
| than necessary, increasing the cost of the shipping | | | | of hiring a customer developer is can be similar to |
| process. Realizing this, shipping companies that don't | | | | hiring your own logistics experts. |
| have an "in house" logistics department will seek the | | | | Moreover, 3PL often places small and midsize |
| advice of a logistic expert. But the type of logistic | | | | companies in the position of hiring logistics services |
| expertise that they retain can also have a significant | | | | that don't offer comprehensive, innovative solutions |
| impact on the cost of the shipping process. | | | | or attempting to hire unaffordable logistics services |
| When a company doesn't have its own logistic | | | | that do; a situation that makes companies realize the |
| expert, it has two options for implementing shipping | | | | value of logistics software, which allows them to |
| logistics: hiring a third-party logistics (3PL) provider, or | | | | realize comprehensive, innovative shipping solutions |
| implementing logistics software. Traditionally, shipping | | | | that increase the timeliness of the shipping process |
| companies have opted for 3PL. But today, shippers | | | | while reducing its price by eliminating the following |
| are increasingly choosing logistics software over 3PL | | | | costs: TMS software costs, 3PL costs, gain shares, |
| for two reasons: the software offers more shipping | | | | freight margins, common rate base licensing costs |
| options and it costs significantly less than hiring a 3PL | | | | and annual software maintenance costs. |
| provider that offers the same level of service. For | | | | Logistics software is available on either a software as |
| companies that are considering hiring a 3PL provider, | | | | a service (SaaS) model or as an onsite software |
| it's important to realize that not all 3PL providers are | | | | solution, with the former offering the advantage of |
| the same. Currently, there are three types of 3PL | | | | remote system access. But in either case, the |
| providers: standard 3PL providers, service developers, | | | | software allows its customers to make expert |
| customer adapters and customer developers. | | | | logistics decisions through an easy to use interface. |
| Stand 3PL providers offer transportation logistics, but | | | | Research shows that companies who implement |
| not as one of their core competencies, which ends | | | | logistics software can reduce their annual shipping |
| up making them attractive due to the low cost of | | | | costs by 10 percent after the first year. |