In today’s economy, many businesses are looking for ways to save money and increase efficiency. One way to do this is by leveraging 3PL freight software. It’s likely that if you need to move freight, you’re going to need a 3PL.
Third-party logistics providers consolidate inventory, organize shipping documents, and use systems to manage the transportation of freight from origin to destination.
But what if you could do all of that yourself?
With 3PL freight software, you can. 3PL software provides users with the ability to quote, book, and track shipments in real-time. It also offers features like route optimization and visibility into your supply chain.
Best of all, 3PL software is designed to be user-friendly, so you don’t need any prior experience in logistics to get started. If you’re looking for a way to save money on your shipping costs, freight software is the way to go.
How Can 3PL Software Benefit Your Shipping Operations?
A 3PL solution that assists with moving goods is a transportation management system or TMS. Businesses need to be able to move products quickly and efficiently. That’s where a 3PL TMS solution can help. 3PL software provides businesses with the ability to automate and streamline their shipping operations.
There are four ways third-party logistics companies leverage a transportation management system to help: visibility, management, connectivity, and flexibility. Let’s review these in more detail.
Clearer visibility through exception-driven workflows
With the real-time visibility a TMS provides, you can gather data from internal and external sources, manage by exception, make decisions faster, and keep all parties informed.
More efficient carrier management
Improve efficiencies on all aspects of carrier onboarding, contract management, carrier assignment & shipment execution, including carrier qualification, spot quoting, broadcast and waterfall tendering, and status tracking.
Easier connectivity via portals
The right software is fully configurable and has customizable portals to break down visibility barriers and enable communication with vendors, carriers, and customers.
Customers can be supplied with a customer portal to allow them greater access and visibility. The interface of the customer portal might provide them with critical information related to the support of their clients, their documents, product invoices, and accounting needs.
Users can easily create a routing request, view routing instructions, get a freight quote and convert to a shipment, accept tenders, post available capacity, enter and review status tracking, and submit and review invoices.
Flexible billing capabilities
A TMS provides the most comprehensive rating and pricing management on the market, giving you ultimate pricing flexibility. You can pass through or markup costs or be aggressive in your spot or contract pricing to win new contracts. Billing activities can be fully automated allowing your team to only deal with the exceptions.
What are the Benefits of Using Freight Software?
Not sure whether or not third-party logistics will work for your company? Here are a few of the benefits of 3PL solutions to consider:
Electronic or web services-based order capture
Give customers a better experience by allowing multiple ordering avenues and providing reliable service and deliveries at the same time. You will always have all the order information you need at your fingertips because the web services-based order capture keeps track of details and order history. This will be useful when creating repeat orders or handling complaints.
Vendor and customer collaboration
Freight software prioritizes relationships between vendors and customers. This is to help businesses become more resilient and adapt to the changing climate of customer needs.
Customer and carrier contract management
3PL freight software provides general transport and last-mile delivery service solutions for a business through effective utilization of customer and carrier contract management in order to ensure on-time delivery, damage-free delivery, on-time reporting, and loss-free delivery.
Electronic routing guide management
With more packages to deliver, especially around the holidays, route optimizations add up to significant time saved for 3PL providers and their clients. This optimization-focused approach allows businesses to continually deliver a high level of consistency and satisfaction to their customers.
Mode and service level selection
There are many aspects of 3PL freight software, and one that can help is mode and service level selection. By using 3PL freight solutions your services are better managed, reducing mistakes, and giving you the ability to solve issues that would otherwise require more time to fix.
Optimal carrier selection
New technologies and systems are modern and allow for more efficient and optimal carrier selection. Manual entry and record keeping are eliminated and carrier selection and sourcing becomes data driven by nature.
Status tracking and automated alerts
Third-party logistics freight software completes the routine and repetitive work of status tracking, leaving you free to focus on the more creative and strategic aspects of your business.
Freight audit
The data outputs help you measure the success of your business. Some key metrics to think about include deliveries, staff, time, and accomplishments.
Operational and scorecard reporting
A 3PL freight solution offers delivery services and key performance indicators (KPIs) that you can use to track your progress. In the delivery world, these are called metrics. Using these metrics will assist you in saving money if and when necessary.
3PL freight software guarantees on-time transportation services and focuses primarily on logistics solutions for business essential products such as pharmaceutical, grocery, industrial materials, household goods, building materials, machinery, liquid/gases, garbage, plastics, chemicals, paper products, utility, farm supplies, and various consumer goods.
3PL freight software should exemplify the latest in cutting-edge transportation and logistics. It should provide seamless integration with internal systems and operations as a whole.
There are four major factors that make our 3G 3PL freight software different than others.
Quality Delivery Standards
Using our 3PL freight software ensures timely delivery of goods to the final destination without any damage or loss of value. The goal is that the goods will be delivered on time, every time.
Route Optimization
This benefits both the driver and the customers. Couriers save time spent on the road and mileage placed on vehicles. This increases productivity and fuel efficiency. Faster, on-time, reliable deliveries mean happier customers.
It’s a win-win situation when companies invest in technology that makes their business run smoother. With so many parcels to keep track of, our route optimization is a vital tool for any driver to get deliveries fulfilled on time.
Preparation
While nobody can predict the future, that doesn’t mean we can’t plan for it. One strategy is to minimize risk. Ensuring preparedness across all systems and having a configurable solution allows clients to incorporate the features that will best prepare them now and long term.
Route Volume
In the world of transportation, route volume is constantly changing. One week could have 19 routes, and another could have over 30, depending on the rate of orders. This can put a strain on order management and inventory control.
The ability to successfully manage inventory all along the supply chain process is essential and will always be challenging for any organization. The right software can assist in all aspects of warehouse operations, transportation management, and ensuring route volume is nothing more than a process the system needs to be accountable for.
Clearer Visibility Through Exception-Driven Workflows
With TMS visibility, you can gather data from internal and external sources, manage by exception, make decisions faster and keep all parties informed.
3PL freight software allows you to build your business through strategic partnerships, and customer relationships, and by providing services to your customers and clients alike in meaningful ways. Workflows are the backbone to ensuring your operations, inventory, and system needs are satisfied and that any user can get meaningful insights in real time.
More Efficient Carrier Management
Improve efficiencies on all aspects of carrier onboarding, contract management, carrier assignment & shipment execution, including carrier qualification, spot quoting, broadcast and waterfall tendering, and status tracking.
Automate Freight Audit & Payment
3PL freight system audit & payment tools fully automate the process so you can manage by exception. You configure your match & audit rules and the system does the rest. Freight bills that fall outside your established thresholds are flagged as exceptions for rejection or investigation.
Achieve Higher Productivity Without Adding Headcount
The freight TMS system is also user-configurable, enabling you to tailor your screens to match your specific operations, and easily adapt to support continuous improvement.
Flexible Billing Capabilities
Freight TMS software provides the most comprehensive rating and pricing management on the market, giving you ultimate pricing flexibility. You can pass through or markup costs or be aggressive in your spot or contract pricing to win new business.
Billing activities can be fully automated allowing your team to only deal with the exceptions. Seamless operations across all business processes allowing full integration with accounting systems.
How Businesses Maximize Profits Using 3PL Freight Software
Using third-party logistics is the easiest way to expand internationally while maintaining good delivery service. The cost of doing business decreases as your processes get tighter and more refined.
3PL companies may be able to offer better rates than you expect because of their size and buying power. Ensuring a streamlined process to manage inventory will support all warehousing needs and integration of systems and processes along the chain.
Because third-party logistics providers will pick up a range of activities, you may save in a number of areas, including admin time, warehousing fees, packing expenses, and customer return management – weigh these diverse savings against the cost of third-party partners and you’ll clearly see that not all systems are created equal.
How to Get Started with Freight Software
Typically, onboarding a 3PL solution comes with significant capital investment. One needs to lease or buy warehouse or storage space, plus infrastructure and plan for integrations with other technologies.
Warehouses need significant amounts of technology to process orders, run automation, scan barcodes, connect to customer and carrier software, and ensure order accuracy. On average, using a 3PL can reduce fixed, variable, and inventory costs.
A 3PL software should be both a solutions provider and an adviser that you can trust. They should be thinking of creative ways to make sure that your products are brought to market faster and cheaper. To do so, they will need a complete understanding of all your present and future fulfillment needs.
Final Thoughts
3PLs rely on sound infrastructure and a solidified process to be a successful supplier to both clients and customers. The need for 3PL freight software and the functionality benefits a system provide is paramount to growing profitability and revenue streams beyond a handful of client accounts.
If a technology-assisted solution can provide current customers and new customers levels of service and support that exceed their daily challenges, they likely will revel in the partnership with the 3PL both now and long term.