How Does LTL Freight Classification Work? A Shipper Guide
Cloud-based FMS platforms are changing the way that shipping partners are communicating with each other. When you manage freight across multiple carriers, locations, and partners, how do you ensure everyone stays connected in real-time? This is where transportation management systems in the cloud make all the difference. In fact, if you were to ask 50 of the top shippers in the United States what their most frustrating shipping experience is, you'd likely hear the word communication brought up a few times.
Communication is the heart of all supply chain movements. Whether it is the shippers communicating with their suppliers, carriers, manufacturers, or customers, finding ways of improving or streamlining the communications network is always a good way to improve the overall shipping process.
It is this constant struggle that drives many shippers to look to cloud-based solutions. In this hunt for something to connect all parties seamlessly and in real-time, it becomes apparent early on that communication is more than just talking to one another. Actually, the most important form of communication is simply the ability to see all steps of the process at work in real-time. It is all about transparency and E2E visibility.
And this is where cloud-based FMS platforms really shine as they facilitate this often-overlooked need.
In this blog post, we'll explore what a freight management system is, how cloud-based FMS benefits shippers, and how you can get started with one.
Today's cloud is a virtual world, with software solutions and communications platforms stored, activated, and easily accessed from any device. Having instant access ability to customer relationship management software, shipping platforms such as transportation management software, or just being able to receive instant updates on shipping situations is a surefire way of keeping everyone in the supply chain in the loop.
Our ability to access information seamlessly and without restriction improves communication throughout the supply chain, which makes everybody happy.
In order to truly highlight the power of the cloud, it's important to outline a few of the best features and benefits of a cloud-based freight management system (FMS)...
What is a Freight Management System?
Shippers who constantly move product from one place to another depend on some sort of computer-based freight management system. A freight management system allows shippers to:
- Connect with carriers
- Receive rating and estimated services
- Schedule pickups and deliveries
- Optimize their logistics networks
Most of the older freight management systems are hard-wired within an individual computer, or software that is only accessible from one device. These older systems are quite reliable still, but require multiple licenses, and can restrict access based on individual user preferences.
The cloud-based freight management system, on the other hand, can be accessed from any computer, tablet, laptop, or even a mobile device. Each user has their own login, with features that help them utilize the FMS to its full potential, including:
- Customized access
- Personalized dashboard
- Reporting functions
- Specialized tools
For example, a shipping and receiving manager needs to have access to multiple reporting functions that one of their employees has no need to review. In the past, a shipper would have to create multiple software solutions for individual users that constantly required updates or security patches that cost the company money. Today's cloud-based system is automatically updated and can be configured with access to employees and other partners within the supply chain that are applicable to their job.
This type of platform offers several advantages:
- Reduces the amount of money needed to power and optimize the solution
- Removes the need for in-house technical support
- Provides easy access from multiple locations
Whether you are on the factory floor, at the airport, or visiting a vendor or customer, you can access the FMS from virtually anywhere.
How a Cloud-Based FMS is Beneficial to Shippersin General
One of the biggest misconceptions of cloud-based technology is that they are expensive to integrate. While in the past this may have been true (from a certain point of view) today's cloud-based FMS is scalable and easier than ever to integrate with shippers of any size.
Full Access Regardless of Location
Imagine having the ability to review a customer's shipping records while visiting them in their office. With this type of cloud-based FMS, a shipper can access vital records and can resolve conflict directly with their customers. Not only does this save time, but it increases the relationship between you and your customer through transparency.
Improved Security of Vital Records
A cloud-based system is backed up with redundant servers an improved security platform. They use several secure socket layers (or SSL) security certificates and mathematical algorithms that help to reduce the potential of cyberattacks, phishing scams, or other potential computer viruses.
Reduced Expenses on Maintenance
Most shippers understand the reality that comes with technology, specialists are always on the payroll to fix problems that come up. With a cloud-based FMS, a shipper can significantly reduce their dependence on technical experts, that usually spend more time waiting for work than actually providing a service. Cloud-based solutions are more dependable, less likely to have connectivity problems, and save companies a lot of money on routine maintenance and upgrades.
How Do You Get Started with a Cloud-Based FMS?
If you're looking to improve communication with your partners, integrating a cloud-based FMS through a Modern 4PL approach like Redwood's is a great first start. Working with Redwood's Modern 4PL approach, you can configure a solid FMS platform that fits your wants, needs, and budget.
Final Thoughts
Cloud-based FMS platforms offer shippers improved communication, enhanced security, and reduced maintenance costs—all while providing the flexibility to access critical information from anywhere. As supply chains become more complex, adopting a cloud-based approach positions your organization for greater transparency and efficiency. Contact Redwood today to learn how our Modern 4PL solutions can help you implement a cloud-based FMS tailored to your business needs.
FAQs
What is a cloud-based freight management system?
A cloud-based freight management system is a software platform that lets shippers manage logistics operations from any internet-connected device. It supports carrier communication, rating and estimated services, pickup and delivery scheduling, and logistics optimization. Because it is cloud-based, users can log in from different locations with customized access, dashboards, reporting tools, and specialized features.
How does a cloud-based FMS improve visibility across the supply chain?
A cloud-based FMS improves visibility by giving all parties real-time access to the same shipping information. That transparency helps shippers, carriers, suppliers, manufacturers, and customers see each step of the freight process as it happens, which reduces confusion and keeps communication aligned across the supply chain.
Why do shippers move from older freight management systems to cloud-based platforms?
Shippers move to cloud-based platforms because older freight management systems are often tied to one computer or require multiple licenses and device-specific updates. Cloud-based systems are easier to access, automatically updated, and can be configured for different users and partners without the same maintenance burden. That makes them more flexible for multi-location operations.
Is a cloud-based freight management system expensive to implement?
A cloud-based freight management system is generally not as expensive to implement as many people expect. The article notes that modern cloud solutions are scalable and easier to integrate for shippers of any size. They can also reduce costs by limiting the need for multiple software licenses, in-house technical support, and routine maintenance.
Can I access a cloud-based FMS from different locations and devices?
Yes, a cloud-based FMS can be accessed from virtually anywhere using a computer, tablet, laptop, or mobile device with internet access. That means users can check records, review shipments, and respond to issues while on the factory floor, at the airport, or visiting a vendor or customer.
How secure is a cloud-based freight management system?
A cloud-based freight management system uses security measures such as redundant servers, SSL security certificates, and mathematical algorithms to help protect data from cyberattacks, phishing scams, and computer viruses. The article presents these platforms as offering improved protection for vital records compared with traditional on-premise setups.
How do you get started with a cloud-based freight management system?
You get started by configuring a cloud-based FMS to fit your shipping needs, budget, and user access requirements. The article suggests using a Modern 4PL approach to help set up the platform and align it with your logistics network, partners, and reporting needs. That creates a more structured path to implementation.
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