| If you plan on starting a manufacturing business, one | | | | expand their business in an economic fashion. |
| of the primary influences on your bottom line will be | | | | In terms of 3PL, the best solution for innovative |
| the type of freight management solutions that you | | | | freight solutions would be to hire a customer |
| choose. However, choosing the right freight solutions | | | | developer 3PL provider. Customer developers |
| isn't just a matter for beginning businesses, as even | | | | integrate themselves with the customer and take |
| longstanding companies can find themselves with | | | | control of the logistics function, developing innovative |
| freight management solutions that aren't financially | | | | shipping solutions. But the drawback to a customer |
| effective. In the case of small and midsized shipping | | | | developer is cost. Where saving on shipping process |
| companies, one of the biggest reasons for | | | | is the goal, hiring a customer developer doesn't make |
| ineffective freight solutions is shipping with third-party | | | | sense. When companies realize that standard 3PL |
| logistics (3PL) providers. Companies that don't | | | | providers and service developers don't offer |
| operate their own shipping fleet naturally gravitate | | | | comprehensive solutions, and that customer |
| toward 3PL providers. But the type pf 3PL providers | | | | developers cost as much as hiring an in house |
| that they use-standard 3PL providers and service | | | | logistics expert, they often consider the benefits of |
| developers-rarely results in a thorough analysis of | | | | implementing freight management software, which |
| best freight solutions. | | | | allows a company to become its own logistics |
| The drawback to standard 3PL providers is that they | | | | provider. |
| don't perform 3PL as their main service, instead | | | | Using freight management software is similar to |
| focusing on shipping activities as pick and pack, | | | | working with a service developer, but at a fraction |
| warehousing and business distribution. However, due | | | | of the cost. The software results in either an |
| to their willingness to work with smaller companies on | | | | affordable monthly fee when offered on a SaaS |
| a limited service basis for 3PL, many companies end | | | | model or a one time purchase and installation cost |
| up with freight solutions that don't offer the best | | | | when implemented as an onsite solution. In either |
| pricing and best delivery time. A similar problem exits | | | | case, using freight management software instead of |
| with service developer 3PL providers. Like standard | | | | 3PL will improve your bottom line by eliminating the |
| providers, service developers focus on offering | | | | following shipping costs, among others: TMS software |
| specific services; particularly, tracking and tracing, | | | | costs, annual software maintenance costs, gain |
| cross-docking, specific packaging and unique security | | | | shares, freight margins and common rate base |
| systems. But they don't offer comprehensive | | | | licensing costs. |
| shipping solutions, which is what shippers need to | | | | |