Logistics Management Program: The right solution for your company
Are you looking for a new solution to your shipping process? In shipping, logistics management is an aspect of supply chain management (SCM) that encapsulates planning and executing the flow of goods from the distributor to the retailer or the customer. Usually, for small businesses, it’s costly to hire a team of experts or a third-party logistics provider to implement an innovative and comprehensive logistics management program.
Nonetheless, both big and small businesses need personnel who can efficiently manage accounts receivable and inventory, because they are an integral part of supply chain management. This is because vendors need a reliable channel that increases not only revenue but also ensures efficient control. A logistics management program, also known as freight management software or logistics software, allows you to analyze your shipping without having to hire a team of logistics experts or third-party logistics providers.
Most shippers don’t believe they can have an official logistics management program because their shipping process is either pretty simple or their logistics providers handle their entire shipping processes. Regardless of how you perceive your shipping process, logistics analysis can help your shipping process adhere to all logistics concerns, e.g., delivery time, the condition of freight on delivery and route quality.
Moreover, some shippers tend to think that only logistics experts can understand how logistics management program function. As such, they tend to know very little about how the program works and resort to outsourcing their logistics needs to third-party logistics companies.
There are four different types of third-party logistics companies:
• Standard 3PL providers: offer essential services and don’t practice third-party logistics as the primary function
• Service developer: provide advanced services although there are no comprehensive shipping solutions
• Customer developer: oversees an existing shipping process
• Customer adaptor: proposes innovative shipping solutions as well as overseeing the shipping process
Hiring a logistics expert or a third-party provider can be very costly since an experienced logistics expert usually earns about $90,000 per year. Due to the high price, most shippers only contact standard third-party providers or service developers. However, such choices result in shipping processes that aren’t integrated due to the low range of options. This might also become costly as a result of the numerous contracts involved.
This is why logistics management software stands out. It removes the middleman from the logistics function, thus reducing the expenses that come with outsourcing. In the long run, your company will register increased revenue through the use of shipping options that are only tailored to your shipping concerns hence improved delivery time and lower costs of shipping. Studies show that logistics management software decreases the annual cost of shipping by up to 10%.
Besides, freight management software has a user-friendly interface that ensures you make informed shipping decisions even without possessing any logistics expertise. The software is also easy to modify to your company’s shipping needs.