Truckload (TL) shipping generally refers to the transportation of an amount of cargo that is enough to fill an entire semi-trailer. Unlike less than truckload (LTL) shipping, where carriers take partial loads from two or more shippers, combining them into a full load and dividing the load price, companies that perform TL shipping contract an entire load to a single shipper. While LTL shipping can present attractive pricing options for small to midsized companies that regularly ship less than a full truckload of products, the basic advantage TL shipping over LTL shipping is that the cargo truck freight is never touched en route to its destination. LTL shipments are commonly handled multiple times en route. While truck load shipping is a more simplistic shipping process than less than truckload shipping, companies that use LTL shipping can still benefit from using TL logistics software to arrive at the best shipping solutions.
TL logistics-software is a particular form of truckload logistics software that helps companies optimize their freight and shipping routes to realize the most cost effective TL shipping solutions. In lieu of logistics-software, companies that don’t have their own shipping fleet or employ logistics professionals usually hire third party logistics (3PL) providers. However, for companies that need to save as much as possible on the shipping process, logistics-software is a more cost effective logistics solution than outsourcing to a 3PL provider for two reasons: it allows companies greater leverage in the shipping process and it removes the need to pay a middleman to dialogue with carriers. When companies implement logistics software, they essentially go from outsourcing their logistics to being their own logistics provider, using an easy to use user interface that’s customized to their company’s particular shipping needs.
Logistics software can be customized in accordance with a variety of shipping concerns, but freight optimization and route optimization two aspects of truckload shipping that logistics software applies to in all cases. Freight optimization deals with a variety of freight concerns, including freight size and volume, packaging and composition, all of which affect the cost of shipping. To put it simply, truckload logistics-software is used to find a carrier that offers the best price in relation to the combined factors of freight optimization. Similarly, logistics-software gives companies the ability find the best shipping routes based on various criteria, including: shortest distance, construction patterns, traffic patterns and road surface quality. By performing freight optimization and route optimization, logistics-software presents companies significantly reduce their shipping costs while improving their delivery time. According to recent studies, companies that implement logistics-software can reduce their shipping costs by 10 percent at the end of one year.