LTL Software: An Overview

LTL Software: An OverviewSmall and medium size shippers often need Less than Truck Load (LTL) shipping arrangements to move their freight. Unlike Truck Load (TL) shipping, in which cargo from a single shipper fills a semi trailer, LTL shipping fills a semi trailer with cargo from two or more shippers. After splitting the cost of the load, each shipper pays less for shipping than it would if it used TL shipping.

As with any shipping arrangement, maximizing the benefit of LTL shipping requires shippers to locate the best rates. To do so, many shippers use logistics software.

Logistics Software among Other Resources

Logistics can be defined as “The detailed coordination of a complex operation where a small or large group of people and facilities are involved in the movement of materiel, goods, or supplies.”

Logistics software is an application that helps shippers choose the best shipping solutions by supplying the logistics function. In the absence of the software, a traditional logistics department or a third party logistics (3PL) provider would supply the logistics function. For businesses that have a limited budget, hiring a team of logistics professionals, or paying a 3PL provider to manage the shipping process, is often unaffordable.

Logistics software is an affordable alternative to these options, as it allows shippers to manage the shipping process without investing significant capital in the management function. In addition to improving your bottom line by improving your Transportation Management System (TMS), logistics software can help you profit by replacing a logistics resource that costs more to maintain. If your company needs to cut shipping costs, implementing the software can help. According to research, using tailored logistics software reduces shipping cost by at least 10 percent in the first year.

Implementing the Right Program

To realize the most savings, shippers must implement TMS software that is tailored to their shipping process, and has the lowest collateral costs. Shippers that need LTL shipping would implement LTL software. To minimize collateral costs, they would implement the product on a Software as a Service (SaaS) model, which eliminates the following expenses that come with implementing it on an in-house model:

Product purchase
Installation fee
System maintenance fees
System update fees

Implementing logistics software on a SaaS model is similar to implementing other programs on the same model. The service provider performs a four-step process:

Analyzes your unique shipping process
Creates a program that reflects your wants and needs
Presents the program for your review
Implements the program when you approve it

The program is operable 30-45 days after you approve its implementation, and you can start to see savings within weeks. If your business needs a low cost solution for finding the best LTL arrangements, a SaaS logistics solution is an excellent option.

Conclusion

Now more than ever, companies improve their bottom line by cutting operating costs. For shippers, the shipping process and the logistics function are two areas where operating costs can be cut significantly, and implementing TMS software is an effective way to do it. If your business needs to reduce the cost of shipping and identify better LTL arrangements, implementing LTL software is an affordable way to accomplish both.


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