When a shipper doesn’t have a dedicated logistics department, they often handle their shipping requirements by deploying logistics software or outsourcing their logistics to a third party logistics (3PL) provider, either of which has benefits. Two benefits of using logistics software are that it enables businesses to take charge of their own shipping procedures by serving as their own logistics provider at a lower cost than engaging a third-party logistics provider (3PL). A firm doesn’t have to be involved in the logistics process thanks to 3PL, and some 3PL providers provide specialised, on-demand transportation services that are perfect for businesses.
Full truckload (FTL) shipping, sometimes referred to as TL shipping, takes place when a business generates enough goods to fill a full semi trailer. TL shipping has the advantage of delivering goods directly to their destination, providing better delivery times, and lowering shipping costs by avoiding expensive warehouse fees. This is in contrast to less than truckload (LTL) shipping, where businesses combine a full load of partial loads and split the shipping cost.
When a customer contracts with a 3PL provider for on-demand truckload shipping, the shipping arrangement is expedited and the client is relieved of any logistical worries over its TL shipment arrangement. The likelihood of receiving a shipping price that is substantially less than the provider’s quoted TL shipping rate, however, is the main benefit of on-demand transportation. Shippers have a good reason to prefer on-demand transportation to TL transportation software development in these circumstances. Although if TL transportation software continually negotiates reduced shipping rates by providing integrated shipping solutions and investigating the widest range of shipping solutions, an on-demand arrangement may occasionally be more advantageous.
In the end, such circumstances offer nothing to demonstrate the superiority of on-demand transportation over logistics software, especially for businesses that want an all-encompassing shipping process solution that, among 3PL providers, can only be achieved by paying a pricey customer developer. Shipping expenses like gain sharing, freight margins, and warehouse fees—which logistics software excels at removing but 3PL providers don’t—should also be taken into account. Contacting a knowledgeable logistics supplier is the best option if you want to find out more about how logistics software may improve your TL shipping procedure and your shipping process in general.
