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What is a Freight Management System?

As supply chains grow ever longer, the shipping industry is only becoming more complicated.

Because of the fast adoption and expansion of eCommerce models both in consumer-facing and B2B industries, people have grown accustomed to receiving shipments quickly and efficiently, even when products are coming from the other side of the world.

Both LTL and 3PL companies face several challenges in this environment, and many shipping and freight companies are actively searching for solutions to solve them.

The Challenges Facing LTL and 3PL Companies

Strong communication is essential for 3PL companies to deliver the shipments of multiple partners and to keep operations running smoothly. But perhaps more important is the issue of transparency.

3PL companies that don’t have real-time reporting on delivery statuses, ETAs, and other metrics can’t communicate that information to their partners and will struggle to scale their operations.

On the LTL side, the industry is already facing numerous challenges. A sustained driver shortage is having a ripple effect across the logistics industry. Government regulations, rising fuel costs, and the need to onboard new business processes are challenges that must be addressed by LTL companies moving forward.

To create a more FMS for shipping industryagile operational environment that can scale with global demands, both LTL and 3PL operators need to integrate new core technologies that will simplify management and make their processes more efficient.

One of the most integral technologies to the industry, and a key tool for facilitating growth, is the freight management system (FMS).

How Does a Freight Management System Work?

A freight management system is a solution that simplifies all the details, tasks, and processes that go into shipping freight, all while saving you on costs and making your operations more efficient. It enables you to leverage freight process outsourcing (FPO) and the digitization and processing of freight documents, to dramatically reduce the need for manual entry and other legacy operations.

On a practical level, a freight management system matches your freight with carriers and provides other freight management services to help you save time and money. You can pick carriers based on cost and delivery time, among other factors.

Furthermore, a freight management system provides transparency into all your operations through reporting, analytics, and other digital solutions. As a cloud-based system, you can even give your staff the ability to check the delivery status of specific jobs directly from their web browser. They can verify proof of delivery (POD) via uploaded images and clear details, making POD processing much easier.

An FMS also maintains the accuracy of freight billing and enables you to outsource finance and accounting tasks. Both LTLs and 3PLs can use an FMS to reduce the need to manually enter billing and financial information, and they can gain real-time visibility into their cash flows.

Get Your Custom Freight Solution

If your company is struggling to scale, or if your legacy shipping processes are holding you back, it may be time to invest in a new solution. An FMS can help you improve overall costs, onboard carriers more efficiently, and achieve pinpoint accuracy regarding billing and finance.

As your freight back office partner, DDC FPO can provide you with an FMS that will streamline your operations, as well as other services. Learn more about our custom freight solutions.

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DDC FPO is a trusted strategic partner for transportation and logistics companies worldwide. Contact us today to learn how we can help to improve your customer experience. 

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