| Since the deregulation of the trucking industry in the | | | | pick up and delivery would benefit more from using |
| 1980's, trucking companies have offered an increasing | | | | logistics software than relying on the advice of an |
| range of shipping solutions that helps the | | | | LTL shipping company. |
| manufacturer minimize shipping costs; one of which is | | | | Most companies that utilize logistics software |
| less than truckload (LTL) shipping. In LTL shipping, | | | | consistently run a large number of products that are |
| companies that ship less than full truckloads of goods | | | | assembled at multiple locations before they arrive at |
| can save money by paying a fraction of full load | | | | retailers. At first glance, incurring the start up cost |
| shipping fees. For trucking companies, shipping | | | | and service fees of logistics software might seem |
| earnings remain the same. They create a full | | | | contrary to the goal of decreasing operating costs. |
| truckload out of partial load shipments and receive | | | | However, studies show that companies who |
| payment from each company. For manufacturers, | | | | implement logistics software regularly reduce their |
| arriving at the optimal LTL solution usually requires | | | | shipping costs by ten percent in the first year alone. |
| the implementation of logistics planning software, | | | | Exactly how is this savings created? In part, it results |
| which analyzes the cost of shipping and | | | | form the fact that logistics software eliminates costs |
| transportation needs in relation to product destination. | | | | associated with other logistical solutions, such as |
| The obvious advantage of LTL shipping is that it | | | | annual software maintenance costs, TMS software |
| allows companies to decrease shipping costs. But the | | | | costs, 3PL costs, freight margins, gain shares and |
| downside is that products often take longer to reach | | | | common rate base licensing costs. |
| their destination due to the multiple destinations | | | | While logistics software is popular among companies |
| implied by the shared load. In such cases, using | | | | whose yearly shipping costs can amount to more |
| logistics planning software to analyze a shipping | | | | than a small company's annual earnings, it can also |
| situation instead of opting for standard LTL is the | | | | offer solutions for smaller companies. For example, a |
| best way to integrate a solution that brings lower | | | | company that simply wants to improve delivery time |
| shipping costs while ensuring timely delivery. Whereas | | | | can use the software to analyze road construction |
| as LTL companies specialize in LTL, logistics software | | | | trends and highways traffic patterns. In either case, |
| specializes in developing solutions that combine each | | | | the software never fails to improve a manufacturer's |
| element of the shipping process into a streamlined, | | | | finances by making its system of delivery markedly |
| cost effective delivery system. A company that | | | | more efficient. |
| requires freight tracking services in addition to simple | | | | |