Transportation Management System Logistics: Evaluating Your Options

Research shows that a freight transportation management system can cut the cost of shipping by up to twenty-five percent in the first year, but for many shippers, implementing a system for managing freight transportation can impose financial hardships. Traditionally, such experts perform transportation management – an expense most small and midsize businesses can ill afford (hiring these experts can bring a six-figure payroll increase).

How can shippers manage freight distribution without hiring an expensive team of experts?

Traditionally, the answer has been to outsource to Third Party Logistics (3PL) providers-entities that set shipping arrangements between shippers and carriers. In theory, 3PL is a beneficial arrangement for shippers that do not staff experts because the logistics function is outsourced, and the need to hire experts is eliminated. However, for companies that need or prefer more control of the shipping process, using a 3PL provider can be frustrating.

When they opt for 3PL, shippers relinquish a degree of control over the shipping process. Depending on the quality of the 3PL provider’s logistics resources, the price of the relinquishment can be steep. Good 3PL providers leverage a variety of resources to identify the best carrier arrangements, but many 3PL providers use limited resources -a fact that their customers remain unaware of.

If you use a 3PL provider whose resources are limited, your ability to negotiate the best carrier arrangements is also limited.

Replacing 3PL

If your business needs to save money on transportation management, 3PL is a fair option, but it is not as affordable or empowering as logistics software-a class of applications that perform the logistical calculations traditionally performed by experts. By replacing 3PL with a program that provides this function for a Transportation Management System (TMS), you can resume control of the shipping process and reduce your costs in two ways:

  • By paying less for the program than you pay for 3PL
  • By negotiating better carrier arrangements via expanded shipping options

Research shows that TMS software can reduce the cost of freight transport by ten percent in the first year. For many businesses, such a cost savings can be a financial life raft, but receiving it requires a decisive step in a new direction-implementing a TMS application instead of renewing a 3PL contract. When they learn how painless the changeover can be, most shippers are ready to make the switch.

Easy Implementation

TMS applications are designed to support the existing shipping process. Before supplying an application, the provider analyzes a business’s shipping process in depth, creating a program that addresses each need. As the needs change, new options can be added to the existing options, creating a program that evolves with the shipping process.

TMS applications are available on a web-based model or an in-house model. To simplify the implementation process, acquire remote system access, and preserve investment capital, most businesses opt for the former. To learn how TMS software can improve the economy and efficiency of your business’s transportation management system, contact a provider of logistics software today.

3 Key Processes Of Transportation Management System

Transportation Management Systems are really meant to increase the ROI and efficiency of your logistics company and has become a mandatory element for an effective logistics management. The transportation management system or TMS helps your make your logistics management more organized and accurate.

Transportation Management software are aimed at bringing down the time, cost and improved profit. If the time and cost taken are decreased, then there is no doubt that your profit would sour high. All you need to do is to learn to manage this amazing tool in the right way. If you are not managing TMS in the proper way then you cannot expect your business to improve.

Here I would like to talk about the 3 key processes of a transport management system, which have an influential role towards the success of your logistics business.

1) Planning and Decision Making
Planning and Decision making are the most essential parts of any successful organization and cannot be ignored at any cost. If the planning and decision making are not up to the mark, the business is sure to suffer. There have been many instances when many companies have vanished due to lack of proper planning and decision.

A transportation management solutions helps you to plan your logistics business effectively and categorize your transport schemes accordingly based on the importance as per user policy. Some of the major things that plays vital role in proper planning and decision making are transport cost, shorter lead-time, fewer stops, flows regrouping coefficient etc.

The TMS systems is also known as logistics management system and helps you to calculate your transportation cost and adjust your routes so as to experience a decrease in the transportation cost. It helps you to find out which routes yields you better profit margin and which are the stops that needs to be avoided without harming your profit ratio.

In the end the report generating facility offered by this vehicle management system helps you to analyze your logistics management in a much better way. You can even change the scheduling and routing of your vehicles for better results. The report helps you to plan better and make decisions based on that.

2) Customer follow-up
TMS helps you to experience a better customer relationship and follow up due to its enhanced features. One of the advanced feature that makes the tool stand out is the GPS vehicle tracking facility, which helps you to track your vehicle with the help of satellites. With this you would be able to inform your customers as where the vehicle is and when their goods would be delivered. It also helps in effective billing, accurate report generation, documentation etc, which makes your customers happy and satisfied.

3) Measurement
A transportation management system offers you a detailed and customized analytics report which would help you to understand your business in a much better way. The report would help you to find out the areas that needs improvements and also help where you stand when compared with the previous months. Certain reports helps you to drill down more deeper so as to get a better assessment regarding your vehicle routing software.

LTL Software Versus Other Logistics Resources

LTL Software is logistics software that is designed for shippers who need Less than Truck Load (LTL) shipping arrangements. Unlike a Full Truck Load (FTL) shipment, in which a semi trailer contains the freight of one shipper, an LTL shipment combines two or more shipments from different shippers into a semi trailer. This arrangement can benefit shippers that have a small to medium shipping volume in one of two ways:

  • It can be more cost effective than parcel shipping
  • It can be more cost effective than FTL shipping

A potential drawback of LTL shipping is that, depending on the number of times a shipment is sorted and routed during transit, it could take longer to reach its destination than is acceptable. When freight has a wide delivery window, this issue doesn’t pose a problem. When it has a narrow delivery window, delivering it via an LTL airfreight carrier, or combining into a full truckload and transporting it to a break-bulk facility located in the region of its delivery may be better options. After arriving at a break-bulk facility, LTL freight is separated and sent to its destinations.

LTL Softwareand Other Logistics Sources

LTL Software is an alternative to two sources of logistics that can also arrange LTL shipments: an in house logistics department and a freight broker, also known as a Third Party Logistics (3PL) provider. As small and midsized shippers know well, creating an in-house logistics department to oversee a small to medium volume shipping process can be cost prohibitive. But by the same token, not having a logistics resource can make the shipping process unaffordable. Faced with this dilemma, many shippers turn to 3PL providers for logistical expertise.

Today, there are four types of 3PL providers that offer different types of service. Standard 3PL providers offer the most basic shipping services; service developers offer value-added shipping services; Customer adapters manage an already existing shipping process; while customer developers manage an already existing shipping process and propose new shipping solutions.

How does logistics software compare to the services offered by these providers?

It does not manage the shipping process, but it allows shippers to manage it in the same capacity, and with the same resource-based effectiveness, as the 3PL providers above. By using logistics software instead contracting with a 3PL provider, shippers can pay less for shipping, gain control of the shipping process and realize more shipping options. Some 3PL providers arrange shipments using an electronic posting system, where available loads are matched up with available carriers. But logistics software can present options that aren’t available in a posting system.

Conclusion

LTL software is an ideal solution for companies that need an affordable alternative to 3PL or creating an in-house logistics department, one that doesn’t sacrifice the resourcefulness that these options provide. To learn more about how LTL software could benefit your shipping process, and how you can benefit from implementing it on a Software as a Service (SaaS) model, consult a provider of logistics software.

MLM Systems For Leverage and Duplication

MLM systems are one of the most important factors in MLM marketing. Without quality logistical MLM systems in place there is no way to leverage and expand our marketing and your network. Everybody trying to devote all their resources in working with a hard to use lead system that requires them to re invent the wheel is not the answer. This way, while working with the system, we can watch our network grow and get greater returns for our business. The key to success is to develop a powerful system with leverage and duplication. MLM systems are highly productive and efficient and gives us the best possible return on our marketing investment by allowing us to maximize each lead to its full potential.

With proper planning of our MLM systems, we can sit back and watch after the inception as our business takes care of itself knowing proper follow up and action is being taken from not only us but all of our distributors.

The Internet provides ample opportunities by which our systems can work. This system can be working 24 hours a day and if correctly configured it will work without any supervision. Strong MLM systems are the key to growing your team quickly and easily and will help us to recruit more and more people into our network so that our network expands successfully. When our network is large it’s really easy to generate more revenue. MLM systems should help us to make our down line grow. There are many systems that we can signup for. These systems will provide us with leads to the number and quantity that is proportional to what we pay and will receive lists of leads from time to time depending upon the type of agreement that we strike with the companies. We can do as we feel fit with the leads once we have received the leads.

There are many companies that will give us further support than just dispatching us with the list. These companies will help us to develop these leads properly and professionally so that we can get the maximum value out of these leads. They will not only help us to gather possible leads to join our network but also they will advertise about our business and help us to train our leads so that we can get the best business builders working for us.

The system that we are using will determine whether the leads that we have purchased translate into earnings for our business or not. There are so many types of leads in the market. Some of these leads may need a lot of time and attention from our part. Having effective systems will allow you to automatically mentor your new business builders using technology and further leverage your time away from training so you can focus on getting more builders. The use of software MLM Systems on the internet is a vital way to succeed online.