Benefits of Using Packaged Shipping Software

It’s hard to imagine a shipping business without an IT department nowadays. As technology becomes more and more advanced, carriers keep up by taking advantage of the latest innovations and best practices in the industry in order to remain competitive. Forward thinking operators have taken advantage of the rapidly changing technology by using advanced shipping software solutions to enhance their competitive advantage. However, when it comes to choosing the right software solution, the shipping industry is divided between in-house and packaged solutions. Shipping companies need to analyze their unique requirements to determine the type of business solution that will bring more advantage to their daily operations.

Global operators seem to have conflicting views with regard to the cost-effectiveness of building in-house IT systems compared with buying ready-made, customizable platforms. Both have their own advantage when it comes to streamlining operations that have direct effect on the cost-efficiency of a shipping business. Understanding the specific differences between these two systems can help operators make more informed decisions in using their resources.

Bespoke System

Many operators prefer hiring programmers and software developers, and build customized software to fit their specific business requirements. Doing this gives them full control of software development. However, bespoke or in-house systems will require time until they are working live, which will delay the positive impact of automation sometimes up to 3-4 years as seen for bigger implementations. It will also consume resources on the carrier side not only from the IT but also from the involved departments.

In addition, the fact that technology evolves rapidly, software solutions that have been custom-tailored to support a specific function may date quickly and not work on newer platforms, necessitating a painful upgrade that may include an expensive migration process. For the same reason, in-house systems require skilled IT staff which results in increased operational expenses – something that does not sound interesting in a slumping economy.

Packaged System

Generally, ready-made shipping software are a lot cheaper and easier to implement when compared with in-house systems. In fact, buying off-the-shelf solution can be 10 to 50 times cheaper than developing a bespoke system. In addition, modern packaged software incorporates a switching capability, which allows the user to customize each application to handle specific requirements without any expensive re-programming. Once customized, packaged software have the capability to automate time-consuming and resource-intrusive business processes.

Modern packages solutions are flexible enough to work for almost any carrier, regardless of size, specialization, or local requirements. This capability makes it even more appealing for vessel operators to buy off-the-shelf instead of commissioning expensive in-house solutions.

Packaged software solutions are widely available in the software market and can be purchased at very reasonable prices. In addition, many software companies offer excellent guarantee periods for their products during which any software issues are fixed without extra cost.

Change can be Painful

Despite the impressive features of packaged shipping software solutions, many carriers are still stuck with bespoke systems because of perceived difficulties that accompany a change in IT infrastructure. In most cases, these difficulties have something to do with legacy systems which often control key areas of a shipping business. Change in this case must be managed properly using correct methodologies avoid common problems that usually come with the process of implementing a new business system.

Shipping goods involves too many complicated processes that require focus and expertise in all aspects. To be more productive, operators must focus on their core business which is operating ships. They should not divert large amounts of resources to other activities outside their expertise to avoid uncontrolled expenses that can hurt their business in the long run.

Truckload Logistics Software – Shipping Advantages Gained By Companies

Companies that use full truckload shipping often believe that they already have the absolute best. Even with the best shipping method possible, there is always room for improvement. Truckload shipping provides two very noticeable benefits to companies. Products go to their destination on a direct route and do not have to be transferred or temporarily stored in a warehouse. The total shipping cost for these services includes the cost of logistics. A question that should be asked by every company is whether or not the logistics provider being used is truly working for their benefit. The common trend for this type of freight management is to either hire someone to handle the process internally or rely on a third party to perform the task. These options are sometimes too expensive for companies just beginning to take advantage of full truckload shipping. Truckload logistics software is a new alternative to these higher priced methods. It eliminates the additional cost of hiring for the task and lowers shipping costs.

Benefits Companies Receive By Using Truckload Logistics Software

Truckload logistics software is meant for companies that use full semi-trailers to ship freight regularly. The software presents multiple shipping solutions through an easy to use interface. Implementing this management tool allows companies to take charge of their own logistics decisions and become their own provider. Broader shipping options, integrated shipping results, and the elimination of third party services are all advantages received by using this type of software. Many studies have been performed to determine the impact of logistics on freight handling and have averagely shown a ten percent reduction in shipping costs for the first year of use. Third party providers often work with specific carriers and this limits the choices available to your company for each shipment. These limitations increase costs because more sensible options are ignored by the provider. By taking logistics over, you have endless possibilities for shipping solutions and are not limited to specific routes or carriers.

Truckload Logistics Software: How Shipping Costs Are Reduced

Companies all over the country pay out too much when they hire an internal expert or contract logistics to a third party. Experienced experts that work within the company can cost up to ninety grand a year. They may do very well at researching shipping options, but are not able to come up with or go over all the possibilities. Truckload logistics software can come up with every possible option in only a few minutes. Third party contracts also involve additional upfront costs that are avoidable and increase overall shipping costs for companies. While third party providers have been a common choice for companies that do not have their own logistics division, this software is beginning to take its place. Logistics applications provide better results for shipping decisions and eliminate all costs associated with third party contracts and company experts. Costs are also decreased by better freight optimization and shipping route choices. The applications are easy to use and can make shipping a synch for any company. Initial application costs are very minimal and the possible savings are phenomenal.

Why Choose Outsourced Over In-House Shipping Software Solution

Over the past two decades, automation of business processes has significantly increased in many industries including aviation, telecommunications, and banking. In shipping, automation has improved business efficiency by simplifying critical operations that require time and expertise. Nowadays, with increasing access to modern technology, it’s not unusual to find a small carrier using cheap off-the-shelf shipping software solutions to streamline and manage its core operations more efficiently. However, there are still quite a number of carriers who prefer bespoke IT systems despite the availability of much cheaper packaged solutions.

There are certain factors that motivate shipping business operators to develop their own IT systems in-house instead of buying cheaper off-the-shelf solutions. One of these is the advantage of having full control of the development processes which allows users to make specific improvements to the original platform as necessary. In addition, In-house platforms have been tailored to exact specifications, which is believed to deliver competitive advantage.

However, while bespoke systems offer full control of operation-specific features, they also require skilled IT staff and programmers to implement necessary upgrades. The fact that technology is rapidly changing means that IT platforms date and become unsupportable after a while. If a shipping business cannot keep up with the pace of change, it will find itself stuck with an obsolete technology which cannot support newer IT platforms. In addition, investing in a customized platform to automate only a single segment of shipping operation (e.g. a single segment of a terminal), is not worth the cost of the investment, which is significantly higher than buying off-the-shelf shipping software which can be customized to carry out various functions.

The following are some of the most prominent benefits of using off-the-shelf or packaged shipping software:

1. Price. Buying packaged software is calculated to be 10 to 50 times cheaper compared to developing an in-house IT system.

2. Flexibility. Modern packaged shipping software incorporate built-in switching options which allows operators to customize application to perform various tasks without doing any expensive reprogramming.

3. Upgrade options – Packaged software provides upgrade solutions to keep pace with fast changes in technology to make sure that users are always working from tried and tested, up-to-date, and well-supported platforms.

4. Guarantee. Customized or in-house systems do not offer test-runs prior to installation, and the end-product is not revealed until it has been delivered. Off-the-shelf solution allows you to use a system for a certain period to see if it delivers what you expect before you actually buy and install it into your existing IT infrastructure.

5. Efficiency. Packaged solutions are more cost-effective, require less resources, and deliver long-term solutions that can be customized to handle specific requirements of a shipping business.

While off-the-shelf shipping software offer a lot more benefits both in cost of investment and scope of features, accessibility to technology has significantly increased the number of software developers in the marketplace, many of which are not reputable. Carriers should be careful in choosing a supplier by checking their capability, reliability, and financial stability. After all, it’s not wise to buy from a company who’s not going to be around after two or three years, leaving you without support in a case of system failure.