Vendor Compliance and Truckload Shipping: How Logistics Software Can Help

Is the cost of meeting the vendor compliance standards of large retailers and corporations worth the resulting sales? Perhaps not in the short-term, but in the long-term, complying with complex vendor standards is one of the few ways to turn mediocre product sales into phenomenal sales. Even so, small to midsized manufacturers that aim to meet the standards of large corporations and retailers cam immediately find what seem like insurmountable obstacles in their path, especially concerning standards that regard the shipping process, such as the requirement that companies ship full truckloads-as opposed to less than full truckloads-to a business’s receiving docks.

Vendor Compliance and Truckload Shipping: Can Shipping Logistics Help?

The problem with full truckload shipping-also known as TL shipping-for small to midsized vendors isn’t that they can’t ship less than a full truckload of their products in a full semi trailer; it’s that doing so is cost prohibitive. As a result, small to midsized companies typically turn to less than truckload shipping-also known LTL shipping-in which two or more shippers of partial loads combine their shipments to form a full truckload and split the cost. The general advantage of LTL shipping is its cost effectiveness, while its general disadvantage is its slower delivery time, resulting from numerous pick ups and drop offs.

But LTL can have a more specific drawback concerning vendor compliance and truckload shipping: it could throw a wrench in a business’s well-oiled receiving system, where a full truckload of products comes from a single source and is therefore brings less risk of error during the receiving process. Traditionally, only companies that produce enough goods to fill a full truckload on a regular basis use TL shipping. But today, transportation logistics allows shippers the option of shipping full loads on a schedule more suited to their production output, allowing participation with large buyers of goods.

Method of shipping is one of numerous concerns within a complex set of vendor compliance standards. But it remains one of the toughest standards to meet if you don’t have shipping logistics on your side, a service that companies can secure in one of three ways: by implementing their own logistic department; by contracting with third party logistics (3PL) providers; and by implementing logistics software, which allows you to become your own logistics provider without possessing logistical expertise. Out of the three options, the latter is the least expensive, while still supplying the broad, in-depth approach to logistics a company would receive if it had its own logistic department. To find out more about how logistics software can help your company meet the compliance standards of large corporations and retailers, contact an online provider of logistics software today.

Freight Logistics Software: Frequently Asked Questions

Shippers have three options for managing the shipping process: maintaining an in-house logistics department, outsourcing to a Third Party Logistics (3PL) provider, or implementing freight logistics software. When the objective is to choose the most economical option, most shippers choose the third option for the following reasons:

  • It gives them more control over the shipping process
  • It does not require a staff of transportation management experts
  • It allows them to choose from a broad range of carriers
  • It allows them to perform a freight audit without the help of a third party
  • It allows them to avoid paying high service fees to a third party

If you are considering making logistics software a part of your shipping process, but you need more information, the answers below can help.

How does the product compare to 3PL?

The product compares favorably to Third Party Logistics (3PL). Unlike 3PL, it does not place the logistics function in the hands of a third party. Instead, it allows the shipper to become its own logistics provider by providing resources for executing and managing the shipping process. Consequently, using the product is typically more affordable than outsourcing to a 3PL provider.

Does the product come in different configurations?

The product can be configured to meet the needs of the shipper. For example, while one shipper may need a configuration for Less Than Load (LTL) shipping, another shipper may need a configuration for transportation management. All configurations can facilitate administrative tasks such as a freight audit.

Is the product available on a SaaS model?

Freight logistics software is available on a Software as a Service (SaaS) model. It is also available on an in-house model. Because it eliminates the need to purchase software and perform system maintenance, the SaaS model is typically more affordable than the in-house model.

How long does it take to implement the product?

When the product is configured to accommodate a unique shipping process, it is typically implemented thirty to forty-five days after the initial service request. In most cases, the system is up and running within forty-five days.

How much money can a company save by using the product?

The amount of money a company saves depends on two things: what the product replaces, and how much it lowers shipping cost. Using the product to replace a department of freight auditors can yield a six-figure payroll saving. A similar saving can result from using the product to replace the services of a high-level 3PL provider (e.g. customer developer or customer adapter). In terms of shipping cost, most companies report a ten percent reduction in shipping cost after using the product for one year.

Conclusion

Freight logistics software is an economical solution for shippers who need to save money on shipping logistics and reduce the cost of shipping. In addition to accommodating the needs of unique shipping processes, it also allows shippers to perform ubiquitous administrative tasks such as a freight audit. To learn more about benefits of the product, contact a provider of logistics software today.

Warehousing Management Software And Getting This Software For Your Warehouse Operations

Any business owner that has to operate a warehouse knows that the process cannot operate efficiently if there isn’t a solid system in place. A solid system enables for every phase of the warehouse operations to be solid as possible.

So all of these warehouses are going to have a system they are using. The only issue is some of them choose not to make upgrades by means of implementing warehousing management software.

Now for smaller businesses, these types of businesses are usually put off by the high cost of having warehousing management software. A lot of them feel it is simply not a wise investment to make.

That might have been the case a long time ago, but now this type of software has been made affordable and easily accessible. Incorporating it into your warehouse management process would not be difficult at all.

Computer technology has advanced greatly over the course of the past few years. This means advanced warehousing management software is available to those who otherwise would not have had access to it before.

Smaller businesses can decide to utilize it by means of very affordable subscription plans. The amount you pay would be dependent on the features you need and or how long you plan on using the software.

Now what would this mean to the average business owner, particularly those who are smaller? This would mean the upfront cost of implementing warehousing management software would be greatly reduced.

This also means a business would not have to worry about hiring someone to help them decipher or implement the software. There will be no need to purchase additional equipment such as computer servers.

And in most cases the warehousing management software you would be utilizing would be completely hosted and maintained by means of the Internet. No need to worry about security or reliability problems either.

The software that is available these days is going to be extremely reliable and is going to be very secure. After all, you would not want to put your warehouse operations in the hands of any product you felt didn’t offer both to the highest degree.

Some of the key advantages to using warehousing management software would include the ability to reduce problems with shipping. Shipping errors cost a lot of money to correct and that can greatly impact the businesses bottom line. The software will give you the ability to greatly increase inventory visibility as well as accuracy.

Whatever carrying costs you have at the moment can be reduced as well. This is going to definitely help you in the long run, particularly in tough economic times.

Warehousing software will also allow you to increase order fulfillment capacity without having to hire additional staff. There are other benefits as well that you can learn about easily since the program can be taught in a relatively short time frame.

This type of logistics software is beneficial, because as a business is trying to grow the software will enable you to make adjustments so that you can scale it to fit your business as it grows.

Whatever requirements you have you do not have to worry about being locked into a specific way of doing things. You can customize certain things in order to meet specific requirements your warehouse operations are going to have moving forward.

Your process for warehousing management might very well be effective, and you can maintain that system. It is just that with using warehousing management software you can integrate the two so things run far more effectively.

If you intend for your business to grow you will need a way to do this no matter what. Start out now and start getting yourself acclimated to using this software for your business.

Does Achieving the Best Shipping Solutions Require Hiring a Logistic Expert?

Shipping products without the aid of logistics is like journeying to an unfamiliar destination without the aid of a map; eventually, you get there, but it usually takes more time and money than you anticipated. Just as an uninformed driver makes more stops and takes more roads than necessary to arrive at his destination, an uninformed shipping process results in freight making more stops and taking longer routes than necessary, increasing the cost of the shipping process. Realizing this, shipping companies that don’t have an “in house” logistics department will seek the advice of a logistic expert. But the type of logistic expertise that they retain can also have a significant impact on the cost of the shipping process.

When a company doesn’t have its own logistic expert, it has two options for implementing shipping logistics: hiring a third-party logistics (3PL) provider, or implementing logistics software. Traditionally, shipping companies have opted for 3PL. But today, shippers are increasingly choosing logistics software over 3PL for two reasons: the software offers more shipping options and it costs significantly less than hiring a 3PL provider that offers the same level of service. For companies that are considering hiring a 3PL provider, it’s important to realize that not all 3PL providers are the same. Currently, there are three types of 3PL providers: standard 3PL providers, service developers, customer adapters and customer developers.

Stand 3PL providers offer transportation logistics, but not as one of their core competencies, which ends up making them attractive due to the low cost of their services. Service developers perform transportation logistics as their core competency, but typically emphasize in “value-added” services, such as cross-docking and specific packaging. Customer adapters oversee a company’s logistics process, but don’t specialize in innovative shipping solutions. Customer developers oversee the logistics process and do specialize in innovation solutions. But the price of hiring a customer developer is can be similar to hiring your own logistics experts.

Moreover, 3PL often places small and midsize companies in the position of hiring logistics services that don’t offer comprehensive, innovative solutions or attempting to hire unaffordable logistics services that do; a situation that makes companies realize the value of logistics software, which allows them to realize comprehensive, innovative shipping solutions that increase the timeliness of the shipping process while reducing its price by eliminating the following costs: TMS software costs, 3PL costs, gain shares, freight margins, common rate base licensing costs and annual software maintenance costs.

Logistics software is available on either a software as a service (SaaS) model or as an onsite software solution, with the former offering the advantage of remote system access. But in either case, the software allows its customers to make expert logistics decisions through an easy to use interface. Research shows that companies who implement logistics software can reduce their annual shipping costs by 10 percent after the first year.

How to Find the Right Supply Chain Software System for Your Business

As you grow your business to reach customers beyond your immediate base of operations, you will find it necessary to delve more into the logistics side – inventory, shipping, and returns. If you believe your business has the potential to sell products and services to customers in other cities, states, and even internationally, it’s important to make sure your software programs are up to the job of handling all the pertinent data. Customized suites can assist you in keeping track of everything from bills to invoices, but not every brand you see may suit your company’s needs. Know what to look for when consulting with a software programmer.

Knowing How to Operate Your Supply Chain and Software

What works in supply chain management for one corporation or retailer may not necessary guarantee success for you. As you handle your business, you come to know the supply and demand that best suits for your potential for profit. You know which vendors to contact, which shipping companies to employ, and how to mark-up prices where applicable. You keep record of your wholesale and retail contacts who buy from you as well. Therefore, you need software that is intuitive and adaptable to your needs. Some of the features you may want to look for in your search include:

1) Compatibility with other programs. If you use a specific word processor or accounting software and have occasion to transfer or merge files, your supply chain program should be able to work with your existing programs.

2) User-friendly interface. Anybody in your company should have no problems figuring out how to use your business software. Files should be accessible quickly, as should customizable reports for your records.

3) Internet integration. When you need to upload reports to the cloud or e-mail invoices and bills to third parties, your software suite needs to manage it all with no difficulties.

Consultation with an ERP professional will start you on the proper path to installing a business suite that works for you. Once you have received training, you can take control of your inventory and accounting, and manage all sales and profits through your computer. Additional features may be set up should the need arise to open satellite offices, or if employees need to manipulate data remotely. How much you will spend on installation, maintenance and training will correspond with what you require to work. A reputable software consultant can help you there.

To grow your business, your computer systems must work with you to achieve your supply chain management goals.

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