What is Freight Management System? Features, Benefits, Cost Prismetric

Freight Management System: Features, Benefits, Cost

Freight Management System

According to the Global Market Insights (GMI) report, the freight management system (FMS) market is likely to observe a whopping growth between 2021 to 2027 due to the increasing on-time delivery and accurate freight tracking demands from customers.

Even further, with the advent of contemporary technologies such as GPS, the Internet of Things, and Augmented Reality the manual business operations in freight, transport, and logistics industries have become outdated and most business owners and young entrepreneurs now opt to build freight transport management system software.

Hiring expert software developers can help you build custom software that suits your freight management business processes and workflows.

What is a Freight Management System?

A freight management system refers to the automation of goods delivery from the point of origin to a particular destination. The whole process is complex and includes several departments and actions such as supply chain management, inventory control and management, warehouse-to-supplier relationship management, CRM, and many others.

Digitization, ever-growing data, and constant demand from customers worldwide have introduced a global freight management system a much-needed custom software tool for any logistic business today. You can revamp your logistics management system with GPS for vehicle live tracking and using IoT in supply chain and modern logistics operations] through wireless sensor devices. In fact, it has opened up a new horizon to assure security and accuracy of all kinds in the freight management system industry.

Type of Freight

The different types of freights are as listed below

  • Less than truckload freight
  • Full truckload freight
  • Intermodal rail freight
  • Air freight
  • Ocean freight
  • Expedited freight

Names of Freight Management

For decades, freight management has had different alias as logistic service providers (LSPs) put their best efforts to convey their exclusive services with a multidimensional approach. According to a US-based InTek Freight and Logistics Inc, Here are a few names of this marvelous service –

  • Outbound freight management
  • Inbound freight management
  • Managed TMS (transport management services)
  • Managed logistics services
  • Managed transport services
  • Supply chain management
  • Transport management services

What are the benefits of a Freight Management System?

Benefits of Freight Management Solution

A customized freight management system offers a collaborative approach to freight business owners so that they can be assured of smoother operations and increased efficiency from the resources available. Here are some benefits of having a freight management system –

Technological advancement

With a freight management system at the helm, you certainly walk the extra mile with technological advancements. The overall benefits of going digital include you being a frontrunner in the industry and offering your clients the best value for their money spent or invested in your services. From locating or searching for the best freight services to locating and tracking their shipment live, everything shall be on the tip of their fingers.

Flawless processes through automation

The transport management solutions can help simplify internal and external freight operations without affecting their flow. The complex process of freight listing, selection, and live freight tracking process of goods can be managed through a freight management tool.

Goods whereabouts

With the help of freight management software solutions, it is easier to track freight en route and know its whereabouts. Such tracking uses the accuracy of GPS and helps both the parties service providers and receivers about the goods’ location and estimated delivery time. In extreme weather and unforeseen conditions, the freight can be tracked and helped with.

Data and analysis

The best managed logistic services can get you a deep business insight through its analytical capacity. The transport management service solutions can be augmented with built-in supply chain analytics and other analytic tools that store, fetches, and evaluates crucial data from the past and uses it to build foolproof business strategies. Such business analytic tools showcase the strengths and weaknesses of business operations and suggest possible solutions to overcome them.

Documentation and legalization

When you hire freight management system developers, you can ask them to optimize your software for digitizing all paperwork and insurance management. You can also implement local and international regulatory standards to enable required compliances for freight management software solutions.

Cost savings

By suggesting the best routes and cost-efficient carrier services depending on the type of shipment and freight services, the freight management software solutions save a significant amount of money for the owners. Since it requires the least human interactions and inputs, there are fewer chances to have errors in booking and invoicing. Even further, minimized phone calling and physical observation also reduce the manhours required for various freight operations -internal and external.

How does the Freight Management process flow work?

Chiefly, the freight management process has three phases: freight planning, management, and accounting. These three important pillars that enable logistics management software to understand the entire process of freight business. Hence, customized software development is just to cater to the needs of these three processes.

freight management process flow

The freight management system market share has been increasing for the past several years because the transportation management software has grown manifold in the market with its awesome features and customized solutions.

The digital tool is built to smoothen the process of transportation and optimize the shipping as much as possible so that no paperwork is required and human intervention is minimized. Freight management logistics systems, keeping international regulatory standards in mind, can develop a smooth functioning between key stakeholders including freight owners, drivers, vehicles or carriers, and receivers.

And, this is how the freight management system acts on the orders –

Step 1: The buyer places an order and the items are stored in the ‘goods to be delivered’ section. The system triggers a pickup request immediately or with a time stamp depending on the order types.

Step 2: The freight management system lists out the availability of carriers based on the predefined criteria. The carrier can be selected manually or a customized freight management system can do it automatically. It is ensured that the deal with the most suitable and best for buyers’ wallets.

freight management system step

Step 3: The system notifies and shows the forwarders or shippers who are asked to verify the trip. Upon verifying, the loading a picking time is initiated and accepted by the buyers.

Step 4: The freight management system software provides the summary of cargo distribution, carrier allotment, vessel or vehicle information, and finally a digitally signed bill of loading and unloading.

Step 5: The shippers keep an eye on the freight throughout the route and make it available live for the clients to help them track and know their items whereabouts. The real-time tracking helps clients to know the EDT (expected delivery time).

Step 6: In this final step, the trucking agencies are invoiced for their services once the shipment has reached the destination safely.

Features of the Freight Management System

Key Features of the Freight Management System

Freight management software brings on several advantages for transportation and logistics companies as the tool can improve the whole freight business productivities. While some freight management system has general features that come by default from software development companies, While some freight management system has general features that come by default from software development companies, our logistic software solutions can be customized as per your need and market demands; here we list a few –

Automation and digitization of documents

Paperwork in freight management processes plays an important role without which the freight and cargo companies may face legal consequences in any unforeseen events. Hence, the freight management tool offers to upload documents and save data securely on clouds.

freight management tool

The transport management software solutions also assure that the system supports uploaded documents with different formats and file types. Even further, the freight management system can be customized and tailored further for government compliances for goods and transportation.

Shipment management

From placing an order to loading and unloading schedules, and emergencies -everything is handled through a shipment management feature integrated into a freight management system. This module assures that the end-to-end shipment process goes flawless; any disruption or issue in the shipment process shall trigger an immediate notification or warning to concerned departments or personnel.

Freight specific accounting

Logistics and freight accounting has a special approach and, therefore, you can hire freight management software developers and instruct them about accounting specifically. Domain experts suggest six freight accounting components mentioned below:

  • Freight payment: the payment gateway integration for various freight payable services
  • Freight quote and cost: the prices for shopping by various registered and qualified carriers
  • Freight invoice audits: involves verifying the process and validity of invoices after they are brought into accounting software
  • Freight invoice: the bill by carriers containing all information about the shipment and it is to be verified with the landing bill (though it’s quite similar to other invoices)
  • Consolidating freight invoices: the invoices are merged for making the payment frequency streamlined (say, once a week). It’s a useful freight accounting feature for freight brokers and forwarders
  • Freight in/out goods: the goods’ shipping costs that show their entry into the company and exit (to the receivers)

Real-time tracking of freights

To make cargo and good delivery clear and accurate, real-time tracking in the freight management software system enables everyone to trace the freight journey anytime from anywhere. The module also gets you better control over the information fetched and shared across the users and stakeholders. The transit carriers, goods, and materials can be monitored and kept eye on while en route. Using an accurate feature of GPS technology, all such vehicles, vessels, and cargos can be viewed and analyzed on interactive maps.

Every parcel, pallet, or container gets package tracking using barcodes and RFID chips. The latest technology in freight management software systems also allows scanning of the goods even when the codes are out of sight. The shipments or carriers are scanned through several points and the accurate data is sent to the centralized software station where it is securely saved for future reference.

Cargo and carrier management

The freight management system allows shippers to select from an array of facilitators and carriers as per their charges and availability. The freight management platform can optimize the best deal based on the total volume and delivery places of the shippers. Even further, the transportation management tool can suggest the best route to bring down freight costs through minimal or shortest transportation.

Reporting and analysis

Data analysis is the backbone of any business and the cargo and transportation industry is no exception. As the freight business includes a cluster of other service providers and is closely associated with transport, cargo, and logistics, the shippers need to have the freight management tool with built-in data reporting and analysis to build the best business strategies.

A reliable freight management software system shall have astounding analytical tools to help shippers in various ways mentioned below.

  • Analyze customers’ business behavior to suggest necessary service changes
  • Calculate time and cost for each shipment to get the best deal
  • Scan routes for their distances and traffic congestion plus tolls to suggest the most cost-efficient package
  • Careful analysis of carriers’ performances
  • Analysis of partners’ performances
  • Warehouse bay allocation
  • Availability and engagement details and analysis of cargo and transport vehicles
  • Auditing tool for each department and entity to suggest the most fruitful changes in business, if required

Must have Features in an On-demand Logistic Mobile App

The deployment of the Freight Management System in Logistics Company

Many confuse freight management systems with other systems developed for transportation, cargo, and tour management. Well, it is not uncommon to get confused with the terms and services such systems provide because many of them. So, here is the answer – freight management software could be a standalone solution (SaaS platform) or it could be an important part of the TMS (Transport Management System) itself.

Shippers generally refer to transport management software solutions to look for carriers, track their shipment in real-time, maintain documents digitally, and ultimately bank on analytical tools to smoothen their businesses and deals. Those in the freight business, including sea freight, with a big budget, could go for a dedicated freight management system (SaaS) and further customize it according to their business requirements and client demands.

A cloud-based freight management system as SaaS is deployed to assure flawless freight delivery operations using the latest technologies such as GPS, the Internet of Things, Augmented Reality, Machine Learning, and Artificial Intelligence.

Various setups can be generated through FMS such as Full Truckload Shipping (FTL), Less-than-Truckload (LTL), intermodal and multimodal optimization, and many more. While developing a full-fledged transport management system is indeed beneficial, entrepreneurs often prefer the SaaS option for the following features –

  • Freight planning and management
  • Flawless communication between stakeholders and users
  • Claims and account management
  • Seamless compliances and regulations of the transport system as per regional laws

How much does the Freight Management Service solution cost?

Freight management software solutions can help business owners save up to 10-15% of the total freight costs. It is important to note that the expenses on freight transport management software solution development are worth it in long run and the entrepreneurs shouldn’t expect the results and ROI from day one.

The logistic app development cost includes two phases. The cost to build freight software solutions and the cost to maintain and keep it up and running. The ongoing operational costs may vary as they depend on the size, type, and complexity of the freight management software tools.

Indispensable in contemporary freight and logistic software development services, management software solutions are in demand because they are almost mandatory for business owners to stay competitive and provide their users with the best user experience. Though depending on the complexity, the number of features, and the type of software, the development costs varies.

Based on these aspects the average or approximate cost to develop a scalable freight management software ranges from $15000 to $45,000 with some of the simple features; nevertheless, it is better to contact the expert logistic management software development company for accurate budget figures to build a software based on your business requirements.

Hire Dedicated Developers team to build Freight Management System

A professional app development company can do a wonderful job of making specialized logistic software that can add business value to your company. You can expand global trade through various freight and transportation models for profits.

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