Finding the Best Load to Load Logistics Firm

Modern business in a global economy relies on logistics, getting your transportation logistics organized in a way that is both transparent to your organization, and under decent cost control is a worthwhile goal for any technology firm.

One way to do this is to hire a load to load logistics firm; this is a firm that specializes in consolidating loads from different vendors to reduce costs and streamline delivery. Rather than pay the tare penalties for trucks that aren’t fully loaded (or paying, effectively, to move air), this allows you to get some significant cost savings, if you can have a day or so extra flexibility in your transportation logistics requirements.

A good load to load logistics firm will be anything but the usual view of a trucker; these will be firms that are technology companies in all but name, with the ability to coordinate multiple shipments and give you on the spot details on where your freight is.

Most are also effectively logistics integrators; they can also take over for your entire shipping operation, handling your points of contact with small parcel carriers and palletized cargo carriers, with detailed sorting algorithms that will help them find the best rates for you.

One important consideration when doing load to load transportation logistics is that it pays to be organized. One argument is that anytime anyone pays for overnight freight on a parcel, someone has messed up somewhere along the way ahead of time; this is even more true with load to load logistics. Use this for your routine operations, not your emergency runs.

Look into load to load logistics firms that have an established track record in the transportation logistics field, and ask for referrals from other companies with similar needs, such as your suppliers and product vendors – who do they use for large amounts of logistics traffic, and why? It’s also worthwhile to look into companies with multiple years of experience, or a history of innovation in this area. If they develop their own software solutions, it shows that they’re willing to invest resources to improve the overall efficiency of their operation.

In the end, picking the right load to load logistics operation stands to benefit your company, by putting your freight needs into a set of simple statements that can be verified and audited, and removing a great deal of the chaos involved in running a business with extensive shipping and transportation logistics needs.

Warehousing Logistics

Warehousing logistics are widely used in the complex commercial world for cost effective planning and exceptional working performance. Established methodologies, new technologies, network designing, and logistics software help to coordinate activities for client satisfaction. Warehousing logistics is used for planning and implementing various programs according to the requirements of companies or organisations.

Inbound and outbound distribution of materials to the right location at the right time is a solution for reliable performance in supply chain world wide. Warehousing logistics is the best option for distribution of materials from a manufacturing company or a wholesaler to customer requirement locations. Calculation of demand and requirements using warehousing logistics techniques give total control of materials management. This helps to determine the number of locations and outlets to meet the customer requirements. Up-to-date information about supply and requirements can also be analysed using modern networking technologies to check the distribution of materials.

Warehousing logistics helps to achieve a cost effective performance within the time limit. Manufactured materials are received, inspected, and arranged in a facility for distribution utilizing the art of warehousing logistics. Then these items are packed and labelled for sale through various outlets. Materials are also stored to meet the future requirement. Items are sorted and arranged for transportation according to the customer orders.

Modern packing and labelling systems for speedy sorting and refilling are some of the characteristics of warehousing logistics. Products are bar coded and labelled with the brand name. Special labels with customer information and destination facts are marked on the containers in which the products are placed to avoid damage. Warehousing logistics use tracking and tracing techniques for helping customers to understand the status of the ordered products.

Quality inspection and assurance is another field of service in warehousing logistics. Programs to analyse the quality of products are developed to satisfy customer requirements through a cost efficient process. Perfect packing and storage of items to satisfy future requirements improve business support performance. Warehousing logistics also offer an option to store raw materials for production. Reliability and efficiency of a company or manufacturer to gain customer satisfaction depends widely on their techniques of warehousing logistics.

What Is the Best Way to Perform Freight Audit?

If the cost of shipping is stretching your business’ Transportation Management System (TMS) budget to the limit, taking a renewed approach to auditing cargo invoices-a process that can be outsourced, performed manually, or performed with the help of TMS software-may be the answer. Regardless of which method you use, a freight audit has three primary functions:

Examining the accuracy of cargo invoices
Resolving any inaccuracies found
Verifying the resolution

What sounds like a simple process can be complex, especially when invoices are received for multiple services and from multiple cargo forwarders. Lacking the work force to check the accuracy of each invoice manually, some companies examine cargo invoices randomly-a scenario that can allow valuable cost cutting opportunities to slip through the cracks.

Small to midsize businesses that wish to examine each invoice often outsource the auditing function to a third party logistics (3PL) provider. Outsourcing to a 3PL provider can be more cost effective than hiring in-house staff to check invoices manually, but it can be less cost effective than using software to analyze invoices.

The Benefits of Logistics Software

The benefit of logistics software for invoice analysis is best understood when the software is compared to its natural competitor, the 3PL provider. Before the software was available commercially, outsourcing a freight audit to a 3PL provider was the sole alternative to performing it in-house. Shippers sent 3PL providers copies of cargo invoices and paid a fee to have them analyzed. Although this model is still practiced today, it is becoming less popular, because TMS software allows shippers to perform their own analysis and avoid paying a significant service fee to a 3PL provider.

Logistics software is available on a Software as a Service (SaaS) model and an in-house model, with the former being the most popular due to its flexibility and long-term cost effectiveness. Implementing the product on a SaaS model typically takes thirty to forty-five days. After the provider analyzes the needs of a shipper, it builds a system that meets the needs, and then puts the system online. In addition to facilitating basic auditing functions, the system can also include value added services such as rate analysis, rate negotiation, and invoice discrepancy recovery.

Conclusion

When they analyze cargo invoices, companies can save money by discovering and recovering unnecessary charges, but the amount of money they save also depends on the model of analysis they use: manual, outsourcing, or software based.

The manual model requires a staff of invoice analysts-a requirement that is difficult for small to midsize shippers to afford. Outsourcing can cost significantly less, although it still requires a significant service fee. Using TMS software to perform a freight audit is typically the most cost effective solution, as it allows shippers to analyze cargo invoices in-house without using the manual model. After training to use the program, users can take the place of a team of analysts.

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.