For most shipping companies, the cost of the shipping process is second only to the cost of payroll, which makes saving money on shipping an always present priority. In order to save the most money on the shipping process, a shipper usually chooses one of the following options; hiring an in house logistics expert to oversee the shipping process; outsourcing to a third party logistics (3PL) provider; or implementing freight optimization software. Although each option has its advantages, most shippers agree that freight optimization software-also known as logistics software-offers the most benefits, three of which we list below.

Removes the Middle Man from the Logistics Process

This benefit of logistics software is typically mentioned in relation to the cost of 3PL, which ranges significantly depending on the level of service (i.e. service developer, customer developer, customer adapter, etc.). But implementing the software also allows a company to avoid paying a logistics expert, who, with experience, can earn roughly $90,000 a year. Regardless of how much money is saved on the shipping process by employing experts or outsourcing to 3PLs, a company could always save more by implementing logistics software, which performs the work of a logistics expert and allows the customer to choose from among recommended shipping solutions.

Puts a Company in Control of its Shipping Process

While the value of a company being “in control” of its shipping process might seem semantic, the biggest complaint of 3PL customers is that they feel “distanced” from their 3PL provider, and feel as if they lack control over their shipping process. In many cases, the gulf between 3PL’s and their clients is the result of the client having little to no knowledge of shipping logistics. Freight optimization software, which requires no logistics expertise of its user, can ensure that a company never feels distanced from its shipping process again.

Greater Flexibility of Shipping Options

When a company opts for logistics software, it receives logistics solutions that are tailored to its shipping needs, and the same can be true when a company hires a 3PL provider. But the difference is this: because 3PL providers place their financial interest first, their clients seldom receive the same range of shipping options that they do with logistics software. For example, if a non-asset based 3PL provider funnels its business to particular carriers in the name of financial incentive, you can expect your shipping needs to be delegated to the same carriers.

In my research on truckload transportation management, I’ve studied the value of truckload logistics software versus other logistics solutions.