What is Freight Management Software? The Swiss Army Knife of Logistics

Shipping stuff in Australia is complicated.

You have to navigate a jungle of supply chains, traffic conditions, regulations, long distances, shortages, oversupply, unpredictable demand and customer expectations. So managing these complex and changeable conditions requires process and tools that are efficient, accurate, user-friendly, and versatile.

Enter freight management systems.

Freight management software (FMS), or freight management system, are platforms designed to streamline the shipment of inward and outward goods.

It does this by providing a centralised platform for managing the shipment process: from order processing and carrier selection to documentation and tracking. In other words, an FMS helps businesses address their logistics challenges head-on.

In this post, we’ll take a look at what freight management software is, how it works and its benefits. We will also explore how this software can help businesses in Australia manage their logistics operations more efficiently.

What is Freight Management Software?

Freight management software (FMS) is a type of logistics software. It’s a game-changer for transport companies, offering robust and configurable tools for freight management.

Simply put, FMS software is the ultimate solution for optimising your freight operations and enhancing connectivity within your trade network.

Powerful freight management software can minimise your operating costs, improve customer experience via CX tools, and allow seamless collaboration with your business partners, whether they happen to be suppliers, carrier partners, or other operators involved in your logistics chain.

Let’s unfold some of the tools you can find in this Swiss Army knife of logistics.

Core Features of a Freight Management System (FMS)

There are several processes involved when running freight operations. An FMS streamlines the entire process by integrating various logistics functions such as:

• Carrier selection. Choosing third party carriers for your shipment is vital. Freight Management Software can assist logistics operators and ecommerce owners in selecting the best freight carriers based on factors such as cost, service level and transit time. It can also facilitate successful freight rates negotiation and contract management.

• Route planning and optimisation. An effective FMS, tailored to your company’s individual needs, will help you make informed decisions about your delivery routes by considering factors such as distance, traffic patterns, and delivery schedules.

  Modern freight management solutions also allow to adjust routes in real-time. Dynamic route optimization lets you quickly adapt to changing or unforeseen conditions such as traffic, weather, or new delivery requests.

• Documentation and Management of Regulations. Navigating complex regulations and documentation can be as tricky as finding a route through a busy city suburb. Freight logistics software can help efficiently manage all of the paperwork related to every consignment: whether dangerous goods or ugly freight.

  It ensures that you’re complying with local regulations like customs clearances and hazardous materials handling.

• Tracking Shipments. GPS systems have made tracking and tracing shipments so quick and easy for freight forwarders. Freight management software blends seamlessly with GPS technology to provide you with constant updates on the status of your shipments and their delivery times.

• Data Collection and Analysis. Knowledge is power in the logistics industry. And if you can use data collected by an FMS system to constantly tweak and improve your networks, you’re able to make sure that your logistics or ecommerce business leads the pack when it comes to reliability and customer service.

  Powerful freight management software is able to collect and analyse data on various aspects of your supply chain operations, from carrier performance to inventory levels. It provides real time analytics on key performance indicators like cost per kilometre and percentage of deliveries that are done on time.

Benefits of Freight Management Software for Logistics Operations

A freight management system can have a significant impact on your logistics operations or overall supply chain management. It helps you move away from the struggles of paper-based systems and replace them with razor-sharp digital freight processes.

Minimizing freight costs

A freight management system optimises shipping routes, negotiates rates with carriers, and help with inventory management. Studies have also shown that businesses using this software can make significant savings on their transportation costs.

Enhanced customer experience

Clients love to know where their stuff has got to. As a matter of fact, people demand constant updates about the progress of their orders. A freight management system allows you to provide accurate and timely updates on shipment status and delivery. 

And the best thing is…it’s automatic. No more juggling three phones to find out where a driver is while answering questions being fired at you by an upset customer. Freight software just sends out messages for you, letting the customer know where their shipment is and when it will be delivered.  

Improved connectivity within the trade network

A freight management system enhances connectivity by providing real-time visibility into transport operations. This fosters more effective collaboration between suppliers, multiple carriers, and other partners in your logistics chain.

Freight software solutions lets you check your supply chain from end to end: from raw materials to final delivery of finished products to happy customers.

How an FMS Benefits Logistics Service Providers in Australia

Businesses in Australia face unique challenges due to the country’s vast geography and strict regulations. A freight management system can be a game-changer for a logistics company that’s trying to cope with our unique landscape and relevant regulations.

Regulatory compliance

Australia has some pretty stringent regulations around areas such as customs clearance and handling hazardous materials. Freight management systems can help you stay on top of these regulations by collating and processing all of the documentation required by each shipment.

It’s like having a digital customs agent in your warehouse!

Enhancing the connections along your supply chain

With Australia’s unique conditions and vast supply chain, effective collaboration within your trade network is vital. Freight management software offers real-time visibility into supply chain operations, facilitating seamless collaboration with suppliers, transport carriers, and other partners in your network.

Last mile logistics

The vast distances between major Australian cities can sometimes pose a logistical puzzle, especially if you have time-critical interstate freight that needs to be delivered.

To keep your service levels at an all time high (and ensure customer satisfaction), it’s always a good idea to leverage freight software.

Logistics solutions such as an FMS and transportation management software are both critical when optimising last mile deliveries. Aside from route optimisation and visibility, you can also leverage real time data to improve your last mile delivery performance over time.

Freight Managers: Optimise Freight Management Today!

Freight management software is a robust platform that contains features indispensable to your business operations.

At TransVirtual, we’re working on a powerful FMS that you can leverage alongside our popular transportation management system.

In Australia, where logistics comes with its own set of challenges, this software can be as useful as a Swiss army knife! So if you’re in the business of moving goods in Australia, give us a call today.