Freight Management Software and How It Works?

The transportation sector is having a difficult year like many others. Trucking volumes rose by 30 percent at the beginning of the pandemic as a result of panic shopping, then plummeted, and only recently began to rise again. Delivery rates by rail, ocean and last mile are down at least 20%. These strange times already have an impact on operations due to rising labor costs and falling freight rates, the demand for faster shipping with fewer orders, and overall higher carrier margins.

What Is Freight Management?

Freight management software is a tool used by businesses to streamline and optimize the shipping and logistics process. It helps manage and track shipments, plan routes, negotiate rates with carriers, and monitor delivery performance. The software provides a centralized platform for managing freight operations and helps reduce costs and improve efficiency. 

How  Freight Management Software Works?

Freight management software typically works by providing a centralized platform for businesses to manage and track their shipping and logistics operations. The software integrates with a company's supply chain system and carrier networks to gather data on shipments, carriers, routes, and delivery performance. This data is then analyzed and used to optimize shipping processes, reduce costs, and improve delivery times.

Some common features of freight management software include:

• Route planning and optimization
• Carrier selection and rate negotiation
• Shipment tracking and delivery performance monitoring
• Document management and storage (e.g. invoices, bills of lading)
• Data analysis and reporting

Freight Management Software Benefits

By automating and streamlining these processes, freight management software helps businesses to make informed decisions, improve their supply chain operations, and increase overall efficiency.

1. Cost savings: The software helps to optimize shipping routes and negotiate rates with carriers, reducing shipping costs and improving the bottom line.
2. Improved efficiency: Freight management software automates many manual processes and provides real-time visibility into shipments, reducing the risk of delays or lost shipments.
3. Better decision-making: The software provides access to data and analytics, giving businesses the information they need to make informed decisions about their shipping operations.
4. Increased visibility: Freight management software provides real-time visibility into shipments, allowing businesses to track deliveries and monitor performance.
5. Streamlined operations: The software integrates with a company's existing systems, reducing manual data entry and increasing efficiency across the supply chain.
6. Enhanced customer service: By improving delivery times and reducing the risk of lost shipments, freight management software helps businesses to enhance customer satisfaction and build strong relationships with their customers.

Freight Management Usage

Freight management software is used by a variety of industries, including:

1. Transportation and logistics: Companies that ship goods and manage deliveries can use the software to optimize their shipping processes, reduce costs, and improve delivery times.
2. Manufacturing: Manufacturers can use the software to manage the shipment of raw materials and finished goods, improving their supply chain operations and reducing costs.
3. Retail: Retail businesses can use the software to manage the shipment of products to stores and customers, improving delivery times and customer satisfaction.
4. Wholesale: Wholesale companies can use the software to manage the shipment of goods to retailers and other customers, improving efficiency and reducing costs.
5. E-commerce: E-commerce businesses can use the software to manage the shipment of products to customers, improving delivery times and customer satisfaction.
6. Healthcare: Healthcare companies can use the software to manage the shipment of medical supplies and equipment, ensuring timely delivery and reducing the risk of supply chain disruptions.

In general, any business that ships goods and needs to manage the logistics of deliveries can benefit from using freight management software.