The logistics industry is getting more competitive and big players are using their digitalization abilities to increase their margins at the expense of the smaller players. These big players have enough funds to invest in in-house solutions and gain a competitive advantage. But what if you are a small or medium-sized logistics entrepreneur operating as a carrier or a freight forwarder and cannot afford to build your very own software solutions?
You have the opportunity to use some of the most advanced web-based software solutions on the market, which can optimize your operations and maintain or even improve your position in the market.
What is SaaS for a freight forwarder?
Let’s start with SaaS, “SaaS” stands for “software as a service”, this is a subscription based licensing agreement where a supplier provides a web-based software service to a customer as opposed to a customer purchasing software for the use on a specific computer.
For a freight forwarder, this is a technology solution that can digitise processes and automate some crucial daily operations.
What are the main reasons to use SaaS for freight forwarding?
Though the freight forwarding industry is considerably old and well established, it still runs largely on “old-school” methods of running a business. For example, using pen, paper and telephone, as a forwarder when contacting carrier companies to get prices for transportation.
While these old methods do work, they’re old and outdated, if you want your team to be efficient make the best decisions more often. You need to give them the tools to work their best.
This is why many forwarding companies are opting to replace this old method with digital tools like a Quotation Request Solution that enables a dispatcher to send out Quote Requests to multiple carriers and evaluate the best options side by side in a few clicks. These digital processes are faster and enable the user to be more efficient and make the best decision time and time again.
Now let’s evaluate the main reasons (benefits) for choosing SaaS over traditional on-premises software.
1. SaaS is accessible from any place with an internet connection
SaaS applications can be accessed from any device – computer, laptop, tablet, mobile. Users don’t need to install applications on their devices in order to use them.
2. Lower initial and operating costs
As SaaS are subscription-based that means the initial costs are lower. You don’t need to pay a small fortune upfront for having a traditional on-premises software. Additionally, SaaS providers are also managing the IT infrastructure so you don’t need to maintain it with your own IT staff, yet another cost saving.
3. Easy implementation and constant upgrades
You don’t need to care about upgrading your application as SaaS providers manage all updates and improvements. The updated application is usually instantly available to you in your web browser, no need to do anything but clear your cache to start using the latest versions.
4. Seamless integration and the possibility to customize and scale
SaaS applications can usually integrate with many tools like TMS’s or CRM’s. SaaS providers enable this through the use of API’s to access and transfer data between different applications. Additionally, you can customize your plan and increase your subscription level as you grow, this enables easier and smoother scalability.
Software as a service is innovation at the click of a button
When you’re a small business, software as a service is a very good choice. It is easy to deploy and test, usually every SaaS product comes with a free trial period between 1 – 3 months.
You also have the added benefit that you are not committing to a physical product that needs to be stored or maintained at your premises, simply pay a subscription fee for the software and leave the maintenance to the SaaS provider.
For Forwarders
Manage all of your supplier relationships efficiently and in one place. Save your company time and money, serve your clients better.
For Carriers
Give your dispatchers tools that boost productivity. Increase profits in existing markets and unlock revenue potential in new markets.
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2. Find suitable carriers or forwarders
3. Build stable and trusted relationships
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