Logistics Software Removes the Need For 3rd Party Logistics Providers

The more products a company ships, the more shipping costs become subject to cost saving strategies. For most companies, realizing the most economical shipping solutions depends on the implementation of the most popular form of supply chain software (SCS): logistics planning software. On the most basic level, the solutions offered by logistics software improve a company’s phased planning measures, product sales forecasts and scientific safety stock. Some companies hire 3rd party logistics providers, but more and more companies are turning to logistics software in place of 3rd party logistics providers for two reasons: logistics software offers the same level of quality as 3rd party logistics providers and it offers it a much lower price.

When companies use logistics planning software, they can centralize and integrate their product delivery system by allowing drivers at different sites to connect using the most efficient travel routes, which increases product delivery time and decreases fuel costs by reducing empty running. Regardless of which style of logistical planning a company needs to implement-inbound logistics, contract logistics, LCL/FCL, LTL/FTL, etc.-logistics planning software allows companies to arrive at advanced planning and scheduling solutions that can significantly increase their bottom line. By implementing this software, companies can improve the cost effectiveness of the following product distribution arrangements, among others: container planning and empty container repositioning, intermodal transport, multi-hub and multi-leg transport, cross docking, multi-compartment trailer planning and inventory management.

One example of how logistics software helps companies reduce their shipping costs can be seen in less than truckload (LTL) shipping arrangements. Especially beneficial for companies that don’t ship a high volume of goods, LTL shipping allows companies to pay a fraction of full truckload (FTL) shipping costs. LTL shipping combines multiple partial truckloads into a full truckload and splits the full load price between the shippers. For trucking companies, LTL is beneficial because it draws in customers who would traditionally ship their good by parcel carrier. Another example of how logistics software can save companies money is by examining the characteristics of shipping routes. For example, while the shortest route might seem to be the fastest route, this software can reveal that a longer route would be faster due the traffic characteristics of the shorter route.

Without this software, most companies continue to pay more for logistical solutions than they need to. While research shows that both logistics software and 3rd Party logistics providers can help companies reduce their annual shipping costs by 10 percent at the end of one year, opting for this software adds to the savings. When companies use logistics software, they increase their bottom line in basic two ways: by delivering their products to the sales floor faster and by reducing the cost of getting them there.

Advantages of Logistics Software Over Third Party Logistics

For manufacturers who ship a steady supply of cargo, the cost of shipping can rival the cost of payroll. Consequently, reducing shipping costs is a full-time task for most shipping managers. Today, most shippers manage the logistical side of shipping (the part of the shipping process where costs can be cut) with one of the following resources:

  • In-house Logistics – A model of shipping logistics in which the shipping process is managed by a shipper’s own staff of experts.

  • Third Party Logistics (3PL) – A model of shipping logistics in which a third party manages one or more aspects of the shipping process.

  • Logistics software – A web-based or in-house program that allows shippers to choose its own shipping arrangements and perform important tasks such as a freight audit.

Most shippers prefer the first option, but paying a team of experts can be unaffordable. Left to choose between the second and third options, many shippers choose the latter based on the following considerations:

Cost

The cost of 3PL is based on the services a shipper receives. When a shipper receives only a few services through a standard 3PL provider or a service developer, 3PL can be affordable. However, when a shipper uses the comprehensive services of a customer adapter or customer developer, the cost of 3PL can be significant. A software-based resource can facilitate comprehensive shipping management for a fraction of the cost of high-level 3PL services.

Shipping Options

Some 3PL providers make carries arrangements using a narrow range of carrier options, such as those found in an electronic posting system. Conversely, logistics software allows shippers to choose from a limitless range of shipping options based on the appropriate shipping model (e.g. less than load or truckload), and perform a freight audit to monitor shipping costs.

Control

Shippers who use 3PL commonly complain that the shipping process feels too removed-a complaint that often results from the failure of a 3PL provider to provide ongoing, in-depth communication to the customer. Using a software-based resource eliminates this issue by placing the shipper in full control of the shipping process.

Permanence

When shippers use 3PL, they often go through multiple 3PL providers as their shipping process evolves, beginning with a standard 3PL provider and eventually using the services of a customer adapter or customer developer. In addition to being more expensive than using a software-based resource, switching from one 3PL provider to another requires forming new business contracts, continuously delegating more shipping tasks to a third party, and implementing new standards for quality control.

Most shippers wish to implement a permanent logistical solution as soon as possible, and implementing a software-based solution is the best way to do it. After the solution is implemented, it options can be changed as the shipping process changes, providing a seamless transition that does not require the customer to look for a new service provider.

Conclusion

For many shippers, logistics software is the most cost effective logistical resource. In addition to allowing shippers to choose from the broadest range of carrier options, it allows them to perform important tasks (e.g. freight audit) without the assistance of a third party. To learn more about the benefits of software-based logistics, contact a provider of transportation software.

Offshore Software Development

Offshore software development plays an important role in engrossing the requirement of technological solutions. In this modern world, there is a constant and ongoing requirement of technology. And to meet this constant requirement or demand of technology software solutions acts as an important aspect. Almost in all the industries including oil & gas, shipping & logistics, manufacturing, steel, insurance & banking, retail and many others, there is a must requirement of software solutions to manage their entire business process more efficiently and to get the favorable result. However, ready-made software’s does not work always as a perfect solution; as a result there is a requirement of customized or tailored made solutions. Hence, there are numerous software companies around the world offering customized software solutions.

Every business enterprise or entrepreneur, or even an individual would opt for a services which is more reliable and cost-effective. Companies providing software solutions in India has a blend of providing state-of-the-art services and in-budget solutions. This has opened the doors of offshore software development, for the industries around the world. Outsource is the concept, prevailing in India since over a decade, and Indian companies has always proved and served as the best outsourcing partner for their clients.

Advantages of Offshore software development in India

• India has a vast talent pool of expertise on various software technologies and platforms, as the development team in India are thorough with complete knowledge and accredited with various certifications such as Bachelors/ Masters and Engineer’s in Computer Applications. Indian software companies are enriched with this talent pool, which led them to offer the utmost services and solutions to their clients.

• In addition, there are significant numbers of software companies in India who are certified gold partner of Microsoft. This spotlights their knowledge on Microsoft technology. However Microsoft is not the end, these companies also contains in-depth knowledge on open source platform, and this combined knowledge enables them to craft the best solutions.

• Furthermore, they are many software development companies in India who are ISO certified and are a 100% EOU (Export Oriented Unit). This is the add-on advantage.

• Major and prime benefit could be the cost-effective advantage, as the stakeholder or clients don’t need invest on hiring resources or buying infrastructure at his end and moreover, the services offered to them are always in-budget with on-time delivery. This gives a complete composure to the stakeholder.

• Companies’ providing offshore software development in India offers prominent software services and solutions in various fields. This services includes:

-> Custom Software Development
-> Custom Application Development
-> Game Development
-> Custom CMS Development
-> Custom CRM Development
-> Web design and Development
-> Mobile Application Development
-> Industry specific software development
-> And many more…

Offshore software development in India covers a blend benefit of technological expertise and cost-effectiveness along with on-time delivery of project. This blend has made Indian software companies a preferred choice for the industries around the world.