Logistics Software Solutions Can Benefit Your Company in Three Basic Ways

When companies present their transportation logistics solutions, they have tendency to either engage in corporate speak and not really say much about their solutions or speak with such expertise that they fail to give you a basic understanding of how logistics solutions can benefit your company in a daily way. For small to midsized companies, transportation logistics typically arrives in one of two forms: by a company outsourcing its logistics to a third party logistics (3PL) provider or by implementing logistics software solutions that are available as an online software application.

Given that logistics software offers an easy to use interface can be customized to a company’s particular shipping needs and costs far less than outsourcing to 3PL providers, it’s usually the logistics option of preference for small to midsized companies that don’t have the luxury of a shipping fleet or a large shipping budget. If you’ve heard of logistics software but are looking for a basic understanding of how it can aid your shipping process, we offer the following overview of how logistics-software solutions help companies in terms of freight optimization, shipping route optimization and shipping method integration.

Freight Optimization

For small to midsized companies that regularly ship less than a full freight load of products, freight optimization typically subsists on finding the best less than truckload (LTL) shipping options. LTL shipping is when a shipping carrier lets companies ship partial loads that combine to compose a full truckload. The cost value of LTL shipping comes from shippers splitting the cost of a full freight load. Although less than truck load shipping offers low shipping rates, due to numerous stops for delivery and pick up, it often takes goods longer to reach their destination than in other shipping arrangements. Nevertheless, logistics-software solutions can be used to find less than truckload carrier routes that offer the best delivery time. Because warehouse stops are a common feature of freight shipping, logistics software also offers warehouse optimization capabilities.

Shipping Route Optimization

If you use a 3PL provider, you probably won’t have any idea what shipping routes your carriers are using. But shipping routes are a major factor in determining overall shipping cost. Logistics-software can analyze shipping routes according to multiple criteria, including: length of route, traffic patterns, road quality and construction patterns. One example of how route optimization can decrease shipping cost and improve delivery time is by analyzing routes in terms of travel time. For example, a route that is shortest in distance may be longer than another route in terms of travel time due to traffic patterns.

Shipping Method Integration

Shipping method integration is an unofficial term that refers to the ability of logistics software to suggest integrated shipping methods for the sake of reducing shipping cost and improving delivery time. For example, even though air shipping is traditionally more expensive than ground shipping, logistics software might suggest shipping certain shipments by air due to expensive, unavoidable warehouse fees that would result from ground shipping. In addition, logistics software may make such suggestions as shipping products halfway to their destination by boat and the other half by freight truck.

Guidelines For Choosing the Right Shipping Software Solution

In the shipping industry, choosing a software solution is a crucial undertaking for long-term business growth and sustainability. It is therefore important for shipping companies to maneuver through the selection process with knowledge that not all shipping software vendors offer solutions that could address all their operational concerns.

In order to find the best software, shipping business leaders must always remember that acquiring new information technology should not just reduce costs but also assist the progress of processes to improve efficiency and gain significant business advantage. They must perform the following proactively when selecting the right shipping software solution:

Gather data. Choosing enterprise software solutions that do not meet a company’s operational requirements is a waste of time and resources. It is important to identify key issues prior to starting the selection process.

Develop a list of software requirements. This should be performed in order to find out which requirements solution providers respond to. Only then can a vendor short list be created to determine the candidates.

Request for information and prepare a proposal. Buying enterprise solutions demands scrutiny, piloting and comparison with other similar solutions. A collection of data from different departments of the company should be obtained. The information gathered should clearly define employee responsibilities, business processes, data and work flow for the vendors to identify which areas of operation the software solution is greatly and least advantageous to.

A proposal from the shipping company should be prepared to provide an orderly and sensible view of the business’ environment and ideals for automating vital business processes.

Create scripted scenarios. Conventional strategies for evaluating software have become insufficient for complex integrated systems. Scripted scenarios can be used by companies to help them with software selection. In a scripted scenario, businesses can present a unique challenge that they want to be addressed and resolved. Creating these scenarios provides the opportunity for the company to express their vision for their operational environment following the new software’s implementation.

Have the vendor perform a detailed demonstration. Companies should have vendors arrange a detailed product demonstration using the organization’s scenarios as basis. This should be done in order to avoid the vendor from running the demonstration freely and overlook vital issues that need to be addressed. Evaluating the software can be relatively simple if the software provider will perform a concise demonstration of their solution.

Choosing the most beneficial shipping software solution for liner businesses takes thorough analysis and proactive decision-making. Enterprise solutions can be extremely costly and companies do not want to waste both time and resources in implementing software applications that would fail. It helps businesses tremendously to utilize a system for evaluating and measuring software capabilities.

Overcome Shipping Obstacles With Reliable Shipping Software Solutions

The shipping industry is one of the most valuable and rapidly growing industries in the international business field today. without over-the-sea trading, economies will deteriorate because businesses will have very limited options to import and export goods to other countries.

Virtually all activities performed in the liner industry involve significant labor costs and time critical processes. As global trade rises, the pressure on shipping companies also increases. The demand for better customer service delivery and industry excellence keeps growing, and changes need to be made in order to sustain reliability of operations. This is the primary reason why shipping companies need to adopt modern sea freight technology and use cutting-edge shipping software solutions.

There are many areas of the shipping business that can be refined with the utilization of shipping software solutions. Principals, agents, feeder or short sea business, NVOCCs, and terminal and port operators – all parties involved in the shipping process can benefit from adopting modern shipping technology that offers software integrity and user-friendly features.

Software suites such as LIMA enables principals to combine full business functionality with a Windows-standard and easy-to-use interface for management and staff members. This line management software application addresses and resolves problems in schedule management, voyage management, CRM, cost management, equipment handling, accounting and data management.

Agents can take advantage of agency suites such as ALFA to streamline processes for sales and marketing, tariff/quotation/contract management, bookings, B/Ls, manifests, invoicing, dangerous goods handling, voyage account, Intermodal, and Electronic Data Interchange (EDI). With a software application such as ALFA, redundancies are eliminated and work flow is optimized.

For feeder and short sea business, applications such as FAST offer solutions for enhanced booking process, sophisticated invoicing, complex tariff and cost management, and direct linkage to customers and partners to accommodate short transit times and avoid delays in the communication chain.

Software application suites designed specifically for NVOCCs like LIMA NVO provides the vehicle for either regional or global non-vessel operating common carrier businesses to gain competitive edge. Companies have a flexible and scalable software solution to control and monitor all business activities with complete visibility which results in improved staff productivity, tighter rein over contribution margins and revenue, reduced expenses and built-in best practices for enhanced customer service level.

Most shipping software today include applications for improving terminal operations. Terminal management software was developed in order to simultaneously and efficiently handle containerized, RoRo and general cargo for multiple shipping firms. With the use of a reliable terminal management system, operators are rest assured to run their business free from irregularities and hassles, and be able to communicate with agents and shipping firms in an entirely organized manner.

Shipping software solutions were built to facilitate and enhance the effectiveness of all the intricate processes that shipping goods entail. No matter what task is assigned to you, shipping software enables you to do it effectively and competently.