LTL Software Versus Other Logistics Resources

LTL Software is logistics software that is designed for shippers who need Less than Truck Load (LTL) shipping arrangements. Unlike a Full Truck Load (FTL) shipment, in which a semi trailer contains the freight of one shipper, an LTL shipment combines two or more shipments from different shippers into a semi trailer. This arrangement can benefit shippers that have a small to medium shipping volume in one of two ways:

  • It can be more cost effective than parcel shipping
  • It can be more cost effective than FTL shipping

A potential drawback of LTL shipping is that, depending on the number of times a shipment is sorted and routed during transit, it could take longer to reach its destination than is acceptable. When freight has a wide delivery window, this issue doesn’t pose a problem. When it has a narrow delivery window, delivering it via an LTL airfreight carrier, or combining into a full truckload and transporting it to a break-bulk facility located in the region of its delivery may be better options. After arriving at a break-bulk facility, LTL freight is separated and sent to its destinations.

LTL Softwareand Other Logistics Sources

LTL Software is an alternative to two sources of logistics that can also arrange LTL shipments: an in house logistics department and a freight broker, also known as a Third Party Logistics (3PL) provider. As small and midsized shippers know well, creating an in-house logistics department to oversee a small to medium volume shipping process can be cost prohibitive. But by the same token, not having a logistics resource can make the shipping process unaffordable. Faced with this dilemma, many shippers turn to 3PL providers for logistical expertise.

Today, there are four types of 3PL providers that offer different types of service. Standard 3PL providers offer the most basic shipping services; service developers offer value-added shipping services; Customer adapters manage an already existing shipping process; while customer developers manage an already existing shipping process and propose new shipping solutions.

How does logistics software compare to the services offered by these providers?

It does not manage the shipping process, but it allows shippers to manage it in the same capacity, and with the same resource-based effectiveness, as the 3PL providers above. By using logistics software instead contracting with a 3PL provider, shippers can pay less for shipping, gain control of the shipping process and realize more shipping options. Some 3PL providers arrange shipments using an electronic posting system, where available loads are matched up with available carriers. But logistics software can present options that aren’t available in a posting system.

Conclusion

LTL software is an ideal solution for companies that need an affordable alternative to 3PL or creating an in-house logistics department, one that doesn’t sacrifice the resourcefulness that these options provide. To learn more about how LTL software could benefit your shipping process, and how you can benefit from implementing it on a Software as a Service (SaaS) model, consult a provider of logistics software.