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.

ERP Software System Integration for Fast and Quick Decision

ERP (Enterprise Resource Planning) software system is mainly implemented to integrate the major functional units of an enterprise with the latest advancements of information technology. Integration of business units helps in better flow of information and collaboration within and outside the organization, irrespective of its geographical location. ERP mainly targets in integrating three important components of a business procedure like Practices in Business Management, Information Technology and the business targets. This integration has helped the big and medium organizations to streamline their business processes, through the optimized use of assets, ultimately producing multi benefits. The beneficial features of ERP coupled with its successful implementation, have encouraged small and medium sized enterprises to switch over to this software system, to face new challenges in this competitive market. As a result, there has been marked improvement in productivity and profit margins.

ERP software system involves huge software architecture to streamline the distribution of data and information throughout the enterprise scattered in different geographical locations. This streamlined flow of information and communication is managed through the well developed central repository, which forms the core of the ERP software system. The central repository gathers all the important information from the organization and supplies the same to the different units as per requirement, which enhances the speed, performance and the competence of the organization.

Integration is the main aspect of ERP software system. Present day’s ERP architecture supports the various major functions like customer relationship management, human resource management, asset management, Finance, Supply chain management including the logistics and manufacturing warehouse management. ERP system has enabled the integration of the operations of the standalone units in a single platform in a coordinated and unified manner. This integration has enabled fast decision making irrespective of the geographical location and synchronizes the workflow that contributed a lot in the business growth. ERP architecture also provides the flexibility to accommodate customized software modules according to the organizational requirement, which can be updated regularly.

ERP implementation is a daunting task that requires very careful planning by a team of experts. This implementation involves huge expenses and is time consuming. So it is necessary to judge the requirements of the organizations first, and then plan for the ERP implementation accordingly. This planning involves five crucial stages like Structured Planning, assessment of the business process, compilation of data, educating the staff and testing and finally the usage of ERP and its evaluation. Any flaw in one of the stages can cause a failure in ERP implementation resulting in heavy financial loss for the organization.

Logistics Software

Logistics software is a computer program which is used to make the process of logistics services more reliable and accurate. Logistics management is a science of planning, organizing, and executing activities for delivering the required goods or services in the right location at the right time. Modern technologies, communication links, and control systems are essential to manage materials, services, and financial goals. Logistics software helps companies or organizations in their overall performances of designing, developing, marketing, and financing.

This software ensures a consistency in the management and automation of a variety of activities in the logistics management. This also helps for precise event management, planning, transactions, and global trading. Data collection and evaluation of raw materials stored, finished goods, and other information about the supply chain can be accessed easily by using the logistics software. Perfection and pace of the operational processes are maintained to increase the performances of the companies or organisations as a whole.

Logistics software helps to retain a sequential order in the transportation of cargos. It gives all details about traffic routes and modes of transportation to satisfy customer requirements at a lower expense. This software also enables a customer to track and trace the status of an ordered product during transportation. Logistics software in distribution management aids in warehousing infrastructure, goods movement, quality assurance, and product labelling. Freight billing, payment, and auditing are made quicker and reliable with the introduction of this software. Other areas in which logistics software find its application are financial services, sales, marketing, human resource management, performance evaluation, order processing, and customer support.

Logistics software proves to be efficient in network planning, asset analysis, and inventory simulations for successful logistics management. It gives an up-to-date detail about the whole business process for the evaluation of progress in performance. It controls and manages industrial processes such as automation, manufacturing, management, and other operational procedures. Integration of computers to run the software, application selection, and maintenance are necessary to get a required result. Logistics softwares are designed, developed and supported by software developing companies according to the requirements of the logistics management of that company. Promptness, reliability, analytical ability, and defined planning outlook are some of the great concerns while designing logistics software.

TMS Software: Frequently Asked Questions

A shipper’s Transportation Management System (TMS) can have a major impact on its operating cost. With this in mind, shippers achieve transportation management in one of three ways: by creating an in house logistics department, by outsourcing to a Third Party Logistics (3PL) provider (a.k.a. freight broker), or by implementing logistics software. Most shippers are more familiar with the first two options than they are with the latter option. If you need a new logistics solution, but are unfamiliar with TMS software, the answers below can help you assess its value:

What capabilities does it offer?

TMS software is designed to supply shippers with a complete logistics function. To this end, it provides them with the following capabilities, among others:

  • Ability to define rules for carrier selection and shipping routes
  • Ability to mode switch for integrating shipping methods
  • Ability to implement strategies that improve warehouse management
  • Ability to print shipping labels automatically

Implementing TMS software allows shippers to function as their own logistics provider without incurring the cost of creating a logistics department, or outsourcing to a 3PL provider.

What costs are associated with implementing it?

Implementation involves two basic costs: the cost of purchasing the product, or paying for it on a Software as a Service (SaaS) model, and the cost of training how to use it. Overall, these costs are minimal compared to the expense of creating a logistics department or outsourcing to a full service 3PL provider.

Is it better to implement it in-house or on a SaaS model?

For many shippers, implementing TMS software on a SaaS model is the ideal option. In addition to reducing software investment, the SaaS model also eliminates the cost of buying new hardware for system support, system maintenance fees, and system upgrade costs. In house implementation is preferred when industry standards or company policies discourage or prohibit the use of SaaS solutions.

Can it provide as many shipping options as a 3PL provider?

TMS softwarecan provide at least as many shipping options as a 3PL provider and it often provides more. Some 3PL providers limit your shipping options to ones that are found in an electronic posting system, where carriers post available transportation for available loads. TMS software can break through this barrier, allowing you to form relationships with carriers that don’t use posting systems.

Are there different types of TMS software?

There are as many types of TMS software as shippers have shipping needs. For example, a shipper that needs Less than Truck Load (LTL) shipping solutions would implement LTL software.

Is it as viable for large shippers as it is for small ones?

Any shipper can benefit from using TMS software. It is typically used by small to medium size shippers who need an alternative to creating a logistics department or outsourcing to a 3PL provider that provides comprehensive solutions. Even if your company is large, and its shipping process is complex, TMS software can reduce its shipping cost compared to the options above.

Logistics Management: Which Option Is the Most Effective?

In shipping, logistics management refers to the management of the shipping process in three respects: transportation planning, transportation monitoring, and the measurement of Key Performance Indicators (KPIs). These disciplines form what is known as a Transportation Management System (TMS), which manages the shipping process from the planning phase to the quality assessment phase. With the exception of certain administrative functions of transportation monitoring, logistics informs each aspect of a TMS. But the best logistical resource for shipping management can be a matter of debate.

The Emergence of 3PL

In recent years, Third Party Logistics (3PL) has become a viable alternative for companies that don’t have – and often can’t afford – an in-house logistics department. Also known as freight brokers, 3PL providers offer different levels of logistics, from basic shipping services to comprehensive, innovative shipping management. For companies that need a singular shipping service (e.g. cross docking) instead of a comprehensive logistical approach, 3PL can be an economical alternative to creating a logistics department. But for companies that need the highest level of logistics (comprehensive, innovative shipping management), contracting with a 3PL provider and maintaining an in-house logistics department can be similarly expensive.

But there is an affordable alternative to creating an in-house department or using a high-level 3PL provider: logistics software, also known as TMS software. Featuring a user-friendly interface that allows non-experts to plan, monitor, and assess the value of shipping arrangements, TMS software occupies a unique niche in the shipping logistics industry, one that allows shippers to supply their own logistics without hiring in-house experts.

If your company is considering alternatives to entering another 3PL contract, the software’s benefits could provide exactly what you need.

The Benefits of TMS Software

For most shippers, TMS software has three primary benefits when compared to operating an in-house logistics department or contracting with a 3PL provider:

  • Low overall cost
  • Truly unlimited shipping options
  • Direct control of the shipping process

An in-house department can offer unlimited shipping options and control of the shipping process, but it doesn’t offer these benefits on a budget that is affordable for small and midsized companies. 3PL can offer an economical logistics function, but it doesn’t offer control of the shipping process. When a shipper wants the benefits listed above in a single solution, TMS software is the most effective option.

Conclusion

TMS software can be implemented on an in house model or on a Software as a Service (SaaS) model. Because it eliminates hardware costs, system maintenance fees, and system upgrade costs; the latter model offers the most economy and the least aggravation, making it the most popular option.

If your company doesn’t have the budget to support a logistics department, and it doesn’t wish to delegate its shipping process to a 3PL provider, TMS software could be the answer. To learn more about how TMS software could improve your company’s TMS while lowering its operating cost, consult with a provider of shipping logistics software today.

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