Truckload vs Intermodal: How to Know When to Switch
The world of the supply chain is changing rapidly.
The logistics industry is probably one of the most innovative and inventive areas of business. It seems as if with every passing year, new technologies centered around improving the experience of shipping and receiving goods emerge. Of course, this really comes as no surprise as we live in an age in which online sales are beating out retail numbers left and right.
Can you guess what this means? That's right, it means that more businesses are looking for solutions to improve their shipping operations and get an edge over the competition. And the tech companies are more than happy to oblige!
Probably one of the most useful platforms out there for shippers right now is carrier management software (CMS).
The purpose of this software is to monitor the performance and quality of service of each carrier a shipper employs. However, the beauty of carrier management software is that it can be used for so much more. With a well-built CMS, shippers can perform some internal controls such as additional reporting tasks, and give a big-picture perspective on general operations.
In this blog post, we are going to look at the top 3 reasons why investing in carrier management software is a brilliant idea.
Why Carrier Management Software is a Smart Investment
Anytime you are able to begin a fiscal year with a bang, you do it! In the logistics industry, if you don't keep up with the Jones' so to speak, you will get left behind.
And one of the best ways to start off a new year is by reviewing your current logistics network. More importantly, you need to review the performance of your carriers. The people carrying your products from one location to the next are the lifeblood of your company. They are a large part of making or breaking that last-mile of the customer experience a memorable one. So, ensuring that they are consistently delivering the performance your company needs in order to thrive is absolutely critical.
Of course, this is a task that shouldn't only be relegated to yearly review. In fact, you need a way to monitor your carriers on a regular basis. Honestly, we recommend that shippers do this every 3 to 6 months, or anytime that an issue arises with a carrier.
Luckily, carrier management software does both, and then some!
Here are the top 3 reasons:
1. Allows You to Become Comfortable With Using Other Carrier Management Software
Anytime a company invests in software upgrades, it takes time. It must be installed (if not cloud-based) and then customized to meet specific needs. Finally, staff must be fully trained on how to use it.
It is no different with carrier management software.
Yes, this sounds tedious, we know. However, it is wildly beneficial for two reasons.
First, it allows you to get acclimated to this type of system. This is great because there may be times when you are working with a new partner and need to utilize their system instead. While not all CMS solutions are built the same, they do share a lot in common. Having installed your own and the time to play around with all the neat tools and features, you already have a pretty good understanding of how to navigate something similar. This in of itself can save you a lot of time when working with partners or upgrading your own platform to something different.
Secondly, if you are proactive and invest before the beginning of a new year, you have more time to train your employees. Not to mention that you can go into the new year with a complete annual carrier review.
2. Quick Performance Reviews
When configured correctly, a carrier management system can provide instant updates on delivery statuses.
For example, if a customer is asking about the status of their delivery, the CMS user can quickly review updated notifications. This even includes any delays that have been entered by the carrier on their end. Better yet, all of this happens in near-real time with most CMS platforms.
This information can also be automatically forwarded to the customer. This not only keeps them in the loop but provides a better experience for the customer and serves to build more resiliency into your supply chain.
3. Review Shipping Rates Quicker
When it comes time to review shipping rates offered by various carriers, it can get a little hectic.
The process involves several steps:
- Determine freight class: Identify what type of freight class your shipment falls into
- Generate carrier list: Create a list of competing carriers who offer that mode of transport within your budget
- Compare options: Review and compare carriers against your criteria
- Make your decision: Select the carrier that best meets your needs
Needless to say, this all so much easier when performed with the help a solid CMS platform at the ready. The faster you can get freight out the warehouse doors, the faster you can kick the year off in proper fashion.
Final Thoughts
Of course, the best resource for integrating a CMS solution is Redwood's Modern 4PL approach, which combines the technology, the experience, and the support of a powerful shipping network to get you up and running quickly. Ready to take your carrier management to the next level? Contact us today to learn how we can help optimize your logistics operations.
FAQs
What is carrier management software used for?
Carrier management software is used to monitor carrier performance and service quality across a shipper’s transportation network. A well-built system can also support internal controls, reporting, and a broader view of operations. In practice, it helps shippers track how carriers are performing, spot issues earlier, and make more informed decisions about service and costs.
How often should shippers review carrier performance?
Shippers should review carrier performance every 3 to 6 months, or any time an issue comes up with a carrier. Regular reviews help you stay ahead of service problems instead of waiting for a yearly assessment. Carrier management software makes that ongoing review much easier by giving you a consistent way to monitor results over time.
How does carrier management software help with customer delivery updates?
Carrier management software can provide near-real-time delivery status updates when it is configured correctly. A user can quickly check notifications, including carrier-entered delays, and share that information with customers automatically. That keeps customers informed and helps build more resiliency into the supply chain.
Why is carrier management software useful when reviewing shipping rates?
Carrier management software speeds up rate review by helping shippers organize the comparison process. The basic steps are to determine freight class, generate a list of competing carriers, compare options against your criteria, and then choose the best fit. Having that information in one system makes the decision process less hectic and faster to execute.
What steps are involved in comparing carrier shipping rates?
Comparing carrier shipping rates usually starts with determining the freight class for the shipment. From there, you generate a list of carriers that offer the needed mode of transport within your budget, compare the available options, and select the carrier that best meets your needs. Carrier management software helps streamline those steps.
Is carrier management software worth implementing before the start of a new year?
Yes, implementing carrier management software before the start of a new year can be worthwhile because it gives your team time to install, customize, and train on the system. It also lets you begin the year with a full annual carrier review already in hand, which is operationally useful for planning and accountability.
What is the difference between carrier management software and a carrier management system?
In practice, the terms carrier management software and carrier management system are often used to describe the same type of platform. Both are meant to help shippers track carrier performance, review delivery activity, and support rate comparisons and reporting. The specific features can vary by provider, but the core function is the same.
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