Freight Management Solutions - Which Solution is Best For Your Company?

For those who have never owned a manufacturinghouse, you have them at a remote location when
business, the shipping process can seem as simple asyou opt for 3PL. There are four types of 3PL
choosing a carrier to transport goods from oneproviders: standard 3PL providers, service developers,
location to another. But those who have owned orcustomer adapters and customer developers.
are planning to own a manufacturing business knowStandard 3PL providers and service developers
that the shipping process can be anything but simple,specialize in offering particular shipping services but
particularly in terms of choosing a carrier that offersnot comprehensive shipping solutions. Similarly,
the best rates while delivering goods in the timeliestcustomer adapters fulfill a more managerial role than
manner. If you plan on opening a manufacturingstandard 3PL providers and service developers, but
business, one of the first hurdles to your success willthey don't specialize in innovative shipping solutions.
be finding the best freight management solution.Customer developers specialize in innovative shipping
There are numerous freight management solutionssolutions. But the level of service that you receive
for managing and executing the shipping process.results in a cost that is equivalent to hiring your own
Below, we look at the four most common freightlogistics expert.
management solutions in terms of how they apply toImplementing Logistics Software
small to midsize manufacturing companies.Logistics software-also known as truckload
Hiring a Team of Logistics Professionalstransportation management software-allows
To adequately address your transportation logistics,companies to become their own logistics provider by
you'll have to apply logistics expertise to the shippingaccessing an easy to use interface to choose the
process; and for many companies, the answer lies inbest shipping options for their company's needs.
hiring a team of in house logistics professionals. FromLogistics software is available on a SaaS model and
a business standpoint, the first consideration ofas an internal software solution. In both cases, the
whether or not to hire fulltime logistics experts issoftware is designed to reflect a company's unique
always payroll expense. Although large companiesshipping needs based on a careful logistical analysis.
that own their own shipping fleet regularly employ aLogistics software doesn't require logistics to
team of logistics experts, the salaries that logisticsoperate, and it's less expensive than outsourcing to a
experts command can be prohibitive to smaller3PL because it's priced as a software service and not
companies. If you find yourself in the position ofas a consulting service. Logistics software is ideal for
having to compromise on other aspects of yoursmall companies due to the costs that it removes
operation in order to hire logistics professionals, it'sfrom the traditional shipping process, including: TMS
probably best to seek an alternative and wait untilsoftware costs, annual software maintenance costs,
you get large enough to afford increased payroll.3PL costs, gain shares, freight margins and common
Hiring a Third Party Logistics (3PL) Providerrate base licensing costs. Research shows that
Outsourcing transportation logistics to a 3PL providercompanies can reduce their annual shipping costs by
is a common practice among small and large10 percent after the first year of implementing
companies alike. Instead of having logistics experts inlogistics software.