How freight forwarding software increases the efficiency of the supply chain
Freight forwarders organize the shipping of goods and products for every step of the supply chain. This includes; the manufacturer or distributor to customers, the marketplace, or the final distribution point. Simply, freight forwarders connect manufacturers and distributors with shipping companies.
Freight forwarder software has three primary functions. The first is to coordinate less than truckload (LTL) shipments. The second function it serves is shipping route optimization. Finally, software for freight forwarders functions to integrate shipping methods.
Below is an explanation of each of the three primary functions of freight software.
Less than truckload (LTL) coordination
Businesses of all sizes commonly encounter situations in which they must ship products and/or goods. But, the quantity of the cargo they need to ship will not fill the entirety of a truck trailer. In such situations, it behooves the manufacturer or distributor to share the costs of the tractor-trailer with other companies in the same situation.
Freight forwarding systems are the tool by which companies can find a trailer with extra space. By shipping their goods and products LTL, companies eliminate the need to pay for an entire trailer while only using a portion of the space.
Using freight forwarder systems for shipping route optimization
To ship products and goods, companies often use third-party logistics providers (3PL). Third-party logistics providers often ship LTL cargo on indirect routes. This allows them to fill a trailer before arriving at final distribution destinations.
The problem is that a company that puts its cargo in a container shipping LTL cargo must pay for the mileage that the truck travels.
Companies can cut costs by selecting the 3PL traveling in the straightest line between the factory and the destination. Software for freight forwarders allows manufacturers to find the LTL shipping container that will be traveling the fewest miles between the factory and the destination.
Integrating shipping methods with a freight forwarder system
For companies shipping products and goods a long distance, internationally or overseas, it is typically necessary to use several shipping methods. Goods may need to travel via road, through the air, and over the ocean to arrive at their destination.
A freight forwarder system allows the manufacturers of products and goods to coordinate between the different shipping companies that will be handling their freight.
Freight forwarding software is a single tool that allows manufacturers to coordinate their shipping logistics. Without software for freight forwarding, companies are resigned to paying for an entire truckload, paying extra mileage costs, and coordinating shipping methods over the phone or via email.
Software for freight forwarding is an essential part of the distribution of products and goods. Using freight forwarding is a means of saving money by finding the best situation for shipping goods and services.