Get Better LTL Rates Through a Third Party Logistics

Are you looking for a better rate on your shipping? Have you been confused about the whole situation and don't really know who to ask what is best and want a third party to tell you what will work best. I will tell it is not easy to find a good logistics company. But there are things you need to look for in a good third party logistics company. Here they are in the best order of importance. First you want to find one with the best rates. Now I know that this sounds obvious but there is some companies that have a lot to offer besides rates. Now rates can vary carrier to carrier. The logistics companies will have different rates with each carrier. So I would say that it would be best to have a couple third party logistics companies and compare them on every shipment. There is no rhyme or reason to it, I honestly don't know why some are cheaper and some are more expensive. It is just best to compare and over time you will find out which third party logistic company is better for which area of the country.

Second thing in order of importance is ease of getting the quotes. If you are reading this article good chance you know how to use a computer and this is not an alien machine to you. So the third party logistics company must have an easy to use online software. If you have to call it in this is an adequated system. The best companies have a way to get a quote in less than 1 minute online. This is important for 2 reasons. First time is always of essence when trying to quote a number of different things on different third party logistics websites. And most important, if your sale depends on the shipping price of an item you don't want to have call your customer back because you have to get off the phone to get a quote. You could lose the sale with that couple minutes of time for your customer to think it over. You don't want them to occupy their time with something else. A sale can be lost in this short amount of time. Honestly they could not even answer the phone if they wanted to. So this is very important and make sure you can get the quote online.

The last important thing is service. You don't want to have to wait on hold for ever if you have an issue. This is not something that works into productive time in your day. Don't want to have a crick in your neck for holding the phone for too long. If the third party logistic company doesn't answer with a genuine person on the other end. They don't deserve your business. If you have to leave a message for them to get back to you, they are understaffed.

George Martins has been a working for a third party logistics company for over 15 years. Knows many things about the industry and has an extensive knowledge of how the current economic situation is affecting the freight shipping industry. To learn how to get better freight rates please come to [http://www.savemoneyonfreight.com]

The Disadvantages of Hiring a Third Party Logistics Service

Whether your company ships its products locally, nationally or globally, the price that it pays for shipping depends heavily on logistics. From fuel surcharges to warehouse fees, logistics management focuses on every aspect of the shipping process in an attempt to accomplish two things: the delivery of products in a shorter period of time and the delivery of products at the lowest cost of shipping. To accomplish these goals, many companies turn to a third party logistics service (3PL); a company that works with small to midsized companies to transport their freight by land, sea or air. In most cases, 3PL's make the majority of their profits by consolidating freight from different companies and receiving discounts from less than truckload carriers (LTL), airlines or expedited shipping companies, meaning that 3PL's essentially profit from not passing discounts on to their customers. Nevertheless, 3PL companies do provide an essential service for companies that can't afford their own shipping fleet or full truckload shipping (FTL). In fact, the only way that most small to midsized companies could do without 3PL is if they had the ability to conduct their own freight logistics.

Today, small to midsized companies have this ability when they choose freight logistics software over hiring a 3PL. Freight logistics software-also referred to as freight transportation software-has several advantages compared to 3PL, with the most obvious one being price difference. Freight transportation software is an online computer application and is priced accordingly, whereas 3PL providers serve as logistics experts and cost significantly more. Another financial advantage of freight transportation software is that you aren't dealing with a logistics provider that makes money off of the price differential between what you pay for logistics and the actual cost of shipping your goods; instead, you're dealing with a freight logistics software company that makes money by providing a software application for a monthly fee, which essentially means that you cut out the middle man and reap the full financial benefit of logistics.

Although 3PL providers do help companies ship their goods in a timelier, less expensive manner than if they shipped their goods using parcel carriers or FTL providers, 3PL nonetheless profits off of companies whose size necessitates that they look for the most affordable shipping options, including the price required to discover and secure those options. By using freight transportation software, small to midsized companies can realize the same logistical benefits provided by a third party logistics service at a significantly lower price, as well as exert more control over the logistics process. As an online software application, freight transportation software can be accessed from any online computer terminal, allowing each of company's departments to apply its expertise. Whether you ship your products locally, nationally or globally, freight transportation software puts the power of logistics in your hands in an easy to understand module, allowing your company to reduce its shipping costs by as much as 10 percent after the first year of use.

As the owner of a midsized furniture company in the Midwest, I once used a third party logistics service to handle my shipping needs. But then I found out about logistics software, which allows you to make your own educated shipping decisions and save money by cutting out the middleman. I'm telling you about logistics software because of how much money it can save you, money that has helped keep my business up and running in hard times.

TL Transportation Software - Is Management Based Third Party Logistics a Good Fit?

In the debate between whether it's better to use TL transportation software-also known as full truckload logistics software and truckload logistics software-or third party logistics to arrive at the best TL shipping solutions, cost effectiveness and range of shipping options are the two most mentioned factors in favor of TL transportation software. And it's true: because management based third party logistics providers charge their clients more than shipping arrangements actually cost in or to earn their profits and only work with shipping carriers that provide the best rate discounts to make those profits possible, logistics software is an easy to use money saver that presents companies with an increased rage of shipping options. But as if this weren't enough, there are some other critical reasons why you should choose truckload logistics software over third party logistics.

Range of Services

Because every company's ideal TL shipping solutions are different, you have to make sure that a third party logistics provider offers the range of services that you need; and considering that a company's shipping needs can significantly change as it grows or decides to produce new products, it's difficult to predict that you won't need certain services at some point in the future. In fact, you could even get stuck in the position of having to fulfill a contract when a provider can't meet all of your needs. With logistics software, on the other hand, the software provider re-customizing your software options can easily tend to your new shipping needs.

Financial Soundness

In the past two years, a significant number of third party logistics providers have gone out of business or been consolidated. What this meant for their customers is exactly what it sounds like: they had to rush to form new contracts with another provider in order to keep their shipping process on track, and choosing a logistics solution in a rush is contrary to the nature of logistics. When a down turned economy starts affecting the trucking industry, carriers aren't able to offer management based third party logistics providers the same level of discounts that they used to, which leads to providers raising their rates, losing customers and eventually being consolidated or folding. The financial health of logistics software isn't based on the carrier industry, but on the freight transportation software business, which is currently booming.

Range of Control

Regardless of which type of third party logistics provider you contract with-asset based, management based or an integrated provider-you're entering a situation where another company will control your transportation logistics. The value controlling your company's operations should be based on what you lose as a result of not controlling them and not on the mediocre notion that being "in control" is automatically better than letting another company help you with its expertise. But the one thing that you always loose by opting for third party logistics is the ability to continually optimize your shipping process and realize increased cost savings and, in many cases, improved delivery time. When companies switch to logistics software, research shows that they can reduce their overall shipping costs by 10 percent at the end of one year.

Full truckload logistics software has significantly cut my company's shipping costs. To see how truckload logistics software can help, visit RateLinx.com.

3PL Warehousing - What Is a Third Party Logistics Warehouse and How Can It Help Grow Your Business?

Every successful business has a core competency, and the best leaders within these businesses also recognize which areas are not core competencies and in the product business, this is often warehousing and transportation. In short, 'what you do' is not warehousing and distribution, you need someone that does it better than you.

Outsourcing warehousing and distribution of your products could be the right answer for any emerging business looking to realize efficiencies and cost savings. Business leaders make the same decisions in other functional areas - like payroll processing, advertising services, and computer maintenance. In this latter area, manager's ask, "Do I need an IT department of 20 people or of only 2 people, and contract out the rest - scaling up in times where special projects are being executed and down when demand is less.

Warehousing and Distribution - Leverage the Power of Scaling to Meet Business Needs

The 'build versus buy' question is one many executives contend with, and when it comes to warehousing and distribution, the capital requirements of securing warehousing space and or a distribution (often truck) fleet is astronomical. What if sales don't meet forecasts? What if supply is severely constrained? What if inventory is depleted too fast? In each of these scenarios, you will have some combination of under or over capacity on the warehousing and on the distribution-transportation size.

With an outsourced third party warehousing and distribution solution, that is, 'pulling' resources when you need them and in the quantity you need them, means you're always right sized. Yes, it is possible to have your capacity shift with your business needs. What happens when you do this is smart business and it helps align expenses with revenue curves - cost is incurred when business activity - principally revenue - generates it.

Third Party Warehousing and Logistics is for Big and Small Business Alike

If you believe a big company should own its own warehouse or if you think small business operating from a basement warehouse is too small to outsource anything - think again! Large corporations place big emphasis on capacity utilization - arguably a fundamental metric of any company. In small growing businesses, there comes a point where what started to make it successful diminished. Why? Not because the market opportunity has changed, but because the business owner who focused on marketing and sales no longer has the time for, you guessed it, marketing and sales. Outsourcing might seem like a cost addition compared to a home basement and garage warehouse situation, but 'bigger thinking' entrepreneurs know that their time has to be spent nearly entirely in places that add value and drive growth.

Whether you're a business manager in a large company or a start-up, outsourcing warehousing and distribution services to a third party provide can make good sense. The challenge? Investing the time to explore a cost-benefit scenario that accounts for the real (hard and soft) costs of warehousing and distributing your products in-house.

Service Freight Warehousing provides outsourced warehousing and distribution services. Free quotes are available to growing businesses seeking to leverage outsourced warehousing and fulfillment services. Warehouse services for local Canadian and U.S. business clients are provided for distribution from Greater Toronto, Ontario Canada warehouse distribution facilities. Visit http://www.servicefreightwarehousing.com

Logistics Software is Better Than a Third Party Logistics Service For Small Businesses

If you own a small business that you dream of making larger, one of the greatest things standing in the way of your expansion may be your inability to deliver your products to a larger customer base. For many small companies that have aspirations to go big, shipping their products through a parcel carrier becomes too expensive because too many products are being shipped, while freight shipping is too expensive because not enough products are being shipped to compose a full freight load. Consequently, many companies remain localized and never experience the incredible revenue that could come with running a national or international business.

However, when parcel shipping and freight shipping rates prove too expensive considering the amount of product involved, small businesses still have options. One option for overcoming the product/price aspect of shipping is to hire a third party logistics service to search for the best parcel and shipping rates. But since a third party logistics service uses logistics software to examine the shipping needs of a business in relation to what services are offered by numerous parcel companies, small businesses can save money and implementing user friendly logistics software on their own. Offering the same level of quality as a logistics provider, logistics software come with an easy to use interface that makes hiring a third party expert to examine parcel and shipping rates unnecessary.

One of the commonest reasons behind unaffordable parcel rates is that many parcel companies charge for services that a company doesn't need. For example, if you plan on shipping wedding stationary to outlet stores, you probably don't need for Hazmat or residential shipping services. Yet, parcel companies regularly include these unnecessary charges until petitioned otherwise. In addition to determining the necessity of particular services, logistics software also examines the fuel surcharge rates of parcel carriers and audits shipping fees in order to uncover breaches in service among parcel companies.

Because most business don't have the time or means to discover such information on their own, implementing logistics software almost always results in the discovery of parcel rates that are significantly lower than businesses are used to paying. Instead of judging parcel companies on the surface and concluding that parcel shipping isn't an option for your business, implementing logistics software could result in parcel rates that you never imagined existed. However, the software may also determine that your volume of shipping makes shipping by parcel uneconomical, regardless of the discounts that exist, and suggest that you pursue freight shipping. But if you think that you have to come up with a full freight load to making freight shipping worthwhile, think again. Since the deregulation of the trucking industry, trucking companies have been more at liberty to offer new kinds of shipping that draw in more customers, one of which is less than truckload (LTL) shipping. In LTL shipping, multiple partial loads are combined to make one full load, with each shipper paying a fraction of the full freight shipping cost.

Seeking out better parcel rates or using LTL shipping are two of many ways that your small business can expand its reach without having to pay unnecessary shipping changes. To discover more ways to ship your products economically, implementing logistics software is the best choice.

To extend your small business beyond its local setting, you'll have to find shipping options that make sense for the volume of products that you plan on shipping. While some companies consult with a third party logistics service to solve shipping dilemmas, implementing easy to use logistics software is a more economical solution.

Researching Third Party Logistics Providers

In today's fast paced business world it is increasingly important for companies large and small to examine their supply chain processes. More often than not, outsourcing logistics functions will produce optimal results. Third party logistics providers can be the most important service providers to any business. Contrary to making transportation decisions in the past, a manager has many choices which differ drastically. Competition is alive and well in the 3PL field. With so many emerging service providers and such a large variety of service 3PL's offer, it can be confusing to choose the right one for your needs. Rising fuel prices, industry regulation, and the customer's desire to receive orders rapidly are all reasons logistics decisions are vital to the health of a company. Due to the complexity of modern day logistics, a manager must have a clear understanding of the options. One key reason for outsourcing is to save managers time that should be utilized elsewhere. So what can a manger do to understand all their options and still save time? Much of the information a manager needs is located on third party logistics provider's websites or can be found with light internet research.

All reputable service companies should have an informative website. Sometimes a manager can feel like they are drowning in information that doesn't really pertain to them. It helps to know what particular information you hope to find from their website. Here are a few keys aspects to help guide your research.

Ensure that a company can fit your needs

Services offered would be the first thing a manager should examine. Larger 3PL's may offer everything you can imagine, but do they offer the flexibility you need? Well established companies tend to have a very strict process which may force you to adjust transportation strategies. Mid-sized to smaller 3PL's will often offer flexibility and problem solving solutions you appreciate, but only have limited service offerings. A service provider's websites should give you a good overview of all they have to offer.

Once a manager finds a company that offers the services their company needs, the next step is looking at the industries the 3PL already serves. Although many companies will venture into new industry in the name of growth, it is best to find a company that already works with your industry. Most 3PL's make this section of their site very easy to spot if it's not the first thing you notice.

When a manager finds a 3PL that services their industry with the services their company needs, they should look at the locations of that 3PL. Service providers with a large global network tend to make this very easy to find on their website. Smaller companies who target specific areas will focus on these areas throughout their website.

Look for Examples Provided by Company

Third party logistics providers often provide potential customers with examples of great work their companies have completed. Their websites tend to label this differently. Some examples of these labels might be white papers, case studies, or success stories. Other websites may just incorporate these examples into their opening or "about us" sections. This information is paramount to understanding a company's flexibility and contingencies plans. What they've done in the past is a good indicator of how they will handle issues in the future.

Check Companies Reputation

A company's reputation can be a good indicator as to what level of service you can expect to obtain from them. Managers will need to research slightly outside the company website to examine how well they have performed in your industry. Managers can be flooded with information when they begin to search for this information. Limiting your search to only the most reputable trade magazines and associations is essential.

Trade magazines and associations provide a good starting point for examining the reputation of a logistics company. Many magazines rank companies based on one metric or another. This list can be a useful tool to compare companies. This may be a good start but as one reads through this list the reader should notice the metric in which they are being ranked. Keep in mind that the company with the largest revenue may not always fit your needs best.

Using trade magazines, associations, and the company's website it is likely that you can also build a list of companies that do business with each 3PL. This is valuable information when investigating the reputation of a service provider. A manager can research those companies to see if they have delivery issues. This is easily done in today's world of complaint forums, news sites, and blogs. A quick email to the transportation manager of these companies may also yield valuable information. If they are not happy with the service they will let you know right away and usually give details as to why. Keep in mind that people are not as quick to tell you when a company has treated them well so weigh the information of 3PL's accordingly. Also if not provided by the 3PL's website a manager could call the service provider directly and ask for their historical error information.

TL Logistics Management Software - Is It Better Than Third Party Logistics?

For companies that ship their goods by ground, using truckload (TL) shipping arrangements is key to reducing the cost of the shipping process while improving delivery time. TL shipping occurs when a shipper contracts with a carrier to ship full semi trailer loads of goods to a specific destination-a scenario that represents the opposite of less than truckload (LTL) shipping, where companies that ship less than full semi loads combine their loads to form a full load and share the price. Unlike TL shipments, which are valued for their timeliness, LTL shipments are prone to numerous pick up and delivery stops, and can result in unwanted warehouse fees.

Even if your company qualifies for truckload shipping arrangements, it still needs a way to arrive at the best arrangements for its situation-a need that can be met through one of three scenarios: hiring in house logistics experts, outsourcing to third party logistics (3PL) providers, or implementing TL logistics management software. Traditionally, companies have pursued hiring their own logistics experts; or, if developing a logistics department proved unaffordable, outsourced their logistics to a 3PL provider. But today, more companies are choosing to implement logistics software, of which TL logistics management software is one type, to arrive at the best shipping arrangements.

Compared to hiring in house experts or outsourcing to 3PL providers, TL logistics management software brings two advantages: it costs less, and it results in more shipping solutions. By allowing companies to become their own logistics providers, logistics software cuts the middleman out of the shipping process-a move that can save larger companies six figures annually. But the software also cuts down on the cost of shipping by performing shipping route analysis and optimization and analysis of integrated shipping solutions to a degree unavailable through 3PL providers.

An example of how TL logistics management software can benefit the truckload shipping process is as follows: upon performing route analysis in relation to integrated shipping options, the software might determine that shipping a load by truck half way to its destination and shipping it rest of the way by air would provide the lowest shipping cost and best delivery time. If a company used a 3PL provider, this scenario would only occur under two circumstances: if a non-asset based 3PL provider had a financial relationship with a trucking carrier and an air carrier whose routes could intertwine, or if an asset based 3PL provider owned the right assets to make such a situation financially favorable.

In my research on truckload transportation management, I've studied the truckload logistics software versus other logistical solutions.