Shippers use software to replace 3PLs and saving big
Shippers increasingly use software to replace 3PLs with logistics software and saving the markup. One client with locations in Canada and the United States saved 13% by insourcing their logistics management and using our TMS to route their freight and provide reporting. This customer’s freight spend was in the high 8 figures. Another smaller company that makes specialized packaging materials with a more modest freight spend (less than $1MM) is installing our shipping software and is also saving substantial dollars.
The reason 3PLs flourished over the last decade is they had access to sophisticated logistics management software that previously was only affordable to the largest shippers. Now with a revolution in software underway, 3PLs and large manufactures no longer have a monopoly on transportation management system technology. All trends point to transportation management software entering the small to midsize business market. See this article: https://www.shippersedgetms.com/tms-adoption-among-small-to-mid-sized-companies/
Most people like their 3PL but the bottom line is that if the can save thousands with a modest technology spend, that can be the difference between a thin bottom line and bonuses for their employees. One CEO upon coming back from an industry conference instructed his operations department to begin sourcing a TMS for implementation in the next fiscal year. When they reported back the ease of integration and the overwhelming savings available he told the staff to begin implementation right away.
One of the factors to consider in selection of a TMS is whether integration with other internal software is important or not. ShippersEdge offers both standalone and integrated systems. Often customers come onboard without integration and add it in phase II. “We don’t care either way,” Tom Taylor, President of ShippersEdge, “we simply want them on with us and work with a client any way they choose” Taylor continued.
ShippersEdge has a long history in web-based, now cloud-based TMS applications having released the very first web-based TMS in 2002. Our staff has extensive direct hands on transportation experience, we’re here to assist clients in getting the very best out of their Shipping Software or proceeding to a full on integrated transportation management system. Oh, and we do help you get rates too.
Contact ShippersEdge at www.shippersedge.com/info or call 952-777-4421