Replace third-party logistics provider with software

Can I save money on freight if I replace third-party logistics provider with software?

Third party logistics providers [3PL] became mainstream in the 1990’s by implementing then expensive transportation management systems [TMS] and spreading the cost by using those systems for multiple shippers. By economies of scale, the could justify high six figure spends on software. Today shipment management software is available at a very small fraction of the price of the legacy large scale systems.

What about the LTL rates, will I get to keep my LTL rates? In a nutshell, yes. LTL carriers have gotten away from blanket discounts and have moved to shipper specific rates so through talking to your LTL carriers you should be able to keep your rates or decrease your freight rates and eliminate 3PL freight markup your 3PL charges over and above the actual freight carrier’s rates.

How much can I save by using software to replace my third-party logistics provider? 7% to 20% is the typical savings by replacing your 3PL with transportation management software. But my 3PL provides automated tracking and tracing can a TMS provide automated tracking and tracing? Yes, a ShippersEdge transportation management system has automated tracking and tracing and can even feed that data to your CSR or directly to your web similar to when you track your order through Amazon.

I use a freight bill payment company can a TMS provide freight bill auditing? ShippersEdge TMS provides its own freight bill auditing and can feed freight payment information directly to your ERP. Alternatively, ShippersEdge can send shipment data to a freight bill payment company of a freight bill auditing company.

If I replace my third-party logistics provider can I compare LTL rates and select lowest freight rate.  Yes, ShippersEdge TMS will find the lowest LTL rate in one place. You will not have to log into multiple carrier websites to retrieve rates simply to find the lowest cost freight charges.  Electronically tender shipments and electronically track freight. To save money on freight our shipment management software is the way to go.

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TMS Buyers Guide Insource my Third Party Logistics