Projections show that the global freight management systems market will reach a size of $14.3 billion by 2026.
This is growing as many companies are becoming aware of the benefits of using freight management software. With it, you can better organize the transportation of inbound and outbound goods between all parties. This includes shippers, carriers, distributors, and vendors.
For a rundown of 4 of the key benefits of using freight management software, keep reading.
1. Cost Saving
Perhaps the main benefit of using freight forwarding software is that it can help reduce costs significantly. The costs of things like invoicing and manual work can add up throughout the year, but these are reduced when using an FMS (freight management system).
Through the use of analytics and optimization, an FMS can determine solutions for your business that will cut costs without causing any logistical issues. This ensures you’ll still be able to operate just as efficiently (if not more so) while saving money.
2. Customization and Scalability
Even within the same industry, every business has different needs. You can customize an FMS so that it better suits your own supply chain, making things more efficient. Constant data and analytics can show you how your company is performing, and from this, you can make better business decisions.
It’s also very easy to scale an FMS. As a freight company, you may experience changes in demand throughout the year. With an FMS, it will be easier to tackle boosts/dips in business, as well as returns to regular levels.
3. Better Customer Service
In all industries, good customer service is vital. These days, customers have very high expectations, and if they’re not happy, they’ll simply turn to your competitors.
With shipping software, you can provide online portals where customers can get updates about their orders. They’ll be able to track shipments and see where they are at any time, which will reassure them until their orders arrive.
4. Improved Inventory and Warehouse Efficiency
Another key benefit of a logistics software system is that it can make things more efficient, which is crucial when it comes to freight management. You can streamline various areas of your business so that things run smoothly at all times. By tracking inbound and outbound orders, you can maintain suitable inventory levels with ease, and less paperwork will be required, helping to save time.
Overall, improving transportation logistics will make all business operations more efficient, helping to maximize profits. You can look here for more information on how an FMS can improve efficiency.
Should Your Business Be Using Freight Management Software?
While freight management software isn’t 100% essential, it’s one of the best ways to ensure your business can keep up with the competition. Without it, you’ll fall behind and start to lose customers, so it may be worth investing when you can.
For more business articles check out some of our other blog posts.