Is Logistyx Parcel Shipping Software the Right Choice for your Company?
A Logistyx client is basically any retailer, e-commerce business, manufacturer, or logistics provider that ships products via parcel and/or LTL carrier services – including hazmat, inbound, and cross-border – and is looking to automate carrier compliance and shipment execution, track parcel delivery movements, decrease shipping spend, and optimize transportation strategies. While many of our customers primarily use UPS, FedEx, DHL, and the USPS, of late we’ve had a significant percentage expand their transportation networks to include regional carriers and couriers.
What Percentage of your Shipping Volume is Parcel?
Before a company embarks on a search for a multi-carrier shipping system, we like to stress that it’s important to first analyze shipping volumes by modality and then consider whether a traditional Transportation Management System (TMS), a multi-carrier shipping system, or both, solve the problems a shipper is looking to address. For example, if 20% of a shipper’s volume is FTL, and 60% is parcel, then with both systems in place, the business optimizes 80% of shipments. Of course, some shippers only want to invest in technology that addresses the largest percentage of their shipments, creating instances where a business uses only one or the other.
But for those businesses where parcel makes up the largest part of its shipping volume, foregoing a traditional TMS in favor of a multi-carrier shipping system is the obvious choice. The biggest differentiator: carrier compliance for a massive global carrier network. With a traditional TMS, the shipper is responsible for compliance with an ever-expanding field of parcel carriers; a multi-carrier shipping system takes care of this cumbersome process automatically.
Is Parcel Shipping your Core Competency?
To be honest, in our 2,500 years of collective experience, we’ve learned parcel shipping is rarely a core competency of most companies. For smaller companies, this isn’t surprising. Young companies undergoing rapid growth most often lack in-house expertise in logistics. However, we’ve found many large companies also lack the necessary expertise – through no fault of their own.
Whether you’re an experienced logistics manager, VP of Supply Chain, VP of E-Commerce, COO, or CFO, trying to understand the impact of carriers’ pricing models can send you down a rabbit hole. The variables within these pricing models are complex, and understanding carrier rate changes, which are happening with increasing frequency, is complicated.
For example, carriers tend to release generalizations about the percent increase in rates at the beginning of the year, but these are just an average of the increases levied to various portions of the calculation. Shippers tend to react quickly to carriers’ published “average rate increases” by simply budgeting an extra matching average percentage for each carrier, but this is the wrong approach. The devil is in the details about where those changes take effect and the percentage increase applied. Speed to delivery, weight, distance, and package count are just some of the factors shippers need to consider to understand their true rate increase. Without examining the details closely, shippers’ rates could exceed the “average rate increase” and end up with a budget shortfall.
We understand how this happens. Most logistics stakeholders already have their hands full running day-to-day operations and lack time and resources to calculate the true consequences of carrier rate increases and other market changes that impact their operating costs. So, when scaling shipping volumes, navigating a supply chain disruption, or pursuing an enterprise-wide digital transformation, it’s wise to turn to the experts.
Here at Logistyx, parcel shipping is all we do. Sure, our technology helps our clients streamline their parcel shipping execution – getting the right label on the right box, so to speak. But importantly, we help our clients access their parcel shipping data, analyze it to identify trends, run “what if” scenarios, and optimize their transportation strategies. We enable them to measure carrier performance and properly position themselves to negotiate with their carriers. Importantly, we highlight major opportunities to reduce transportation costs and improve customer service, of which companies were previously unaware.
Logistyx Simplifies the Complexity of Global, Omnichannel Parcel Shipping
Logistyx, at its core, is an innovative company, and we have always approached the market with a “the more complex your shipping landscape, the better” mindset. This means that Logistyx parcel shipping software is built for the future, with a cloud architecture and features such as a Control Tower and Business Intelligence that don’t just drive savings in multi-carrier parcel shipping execution, but in parcel shipping strategies. And innovation is what Logistyx’s employees primarily focus on, whether its onboarding new carriers, forging new integrations with our software partners, or developing advanced parcel shipping technology tools to address new shipping dynamics.
What does this mean for you? Working with Logistyx means you will deliver your products on time, in full, and at the lowest possible cost to your customers. It means you can expand and contract your shipping operations to dynamically respond to market conditions. It means you can on-board new carriers when necessary. It means you can seamlessly integrate to critical software in your supply chain technology stack and have not only good visibility over global inventory, but a way to quickly reposition it. It means you can execute ship-from-store. It means you can enjoy all the benefits of cloud technology: best-in-class security, connectivity, and scalability. And so much more…
This may not seem like a big deal, but you’d be surprised how many top companies consider Logistyx their “secret sauce” to successfully competing with industry giants like Amazon, Target, and Wal-Mart. Learn more about the breadth of our capabilities and why we’re the right fit for you in today’s same-day/next-day economy in our e-book: Logistyx Quadrant: Choosing a TMS for Parcel Shipping.