Why pay for a third party dispatch system rather than use one or more free carrier programmes.

 

What is a carrier dispatch system?

A carrier dispatch system is designed to transfer the carriers data entry cost to the client and make it very difficult to change to another carrier, in other words lock the client in, when a client want to change carriers they have to find new software to use and risk losing all their historical data.

Some carrier systems are offering other features such as account reconciliation but it has its own drawbacks as you can only check your account using the carrier’s data so there is little point.

Carrier systems can be web based or in some cases installed on the clients equipment on-site

 

Pluses

•Free

•Give the carriers what they need to process and track your freight properly

 

Negatives

•Lock the client into using the carrier, makes it very difficult to change

•Other software required from each carrier.

•Gives total control to the carrier

 

What is a third party dispatch system? 

Third party software is designed to be multi-carrier and aims to allow the client to take full control of their transport.

It does allow the use of as many carrier’s that the client requires.

 

Pluses

•Full multi-carrier

•Change carrier instantly (your main carrier may have issues on that day)

•Compare carrier prices for the destination and pick the most cost effective

•Account reconciliation clients are surprised on how many errors are on a carrier invoice that are not picked up by manual methods, the savings in time alone would more than pay for a system.

•The full features depend on the software been considered.

•No retraining required if you change carriers.

•One database for all your national or worldwide warehouses (depending on software selected)

 

Negatives

•There is a cost associated, it depends on how the client defines costs but if the client gets a ROI in under three months by increased efficiencies in all areas of a business then how can it be a cost?  

 

Things to look for when deciding on a third party dispatch system.

•If you only use one carrier a carriers system may be the solution for you.

•Is it modular (is there an extra charge for each feature required)

•Are you forced to buy the software providers stationary? Or can you source your own or use carrier supplied for nothing

•Do your potential provider charge carriers for uploading data? These charges can be passed back and can increase your cost considerably.

•Can you report on all your warehouses from one point or do they have separate databases and you have to log into each one.

•Does your charge include all your support?

•Is support available when you need it?

•Does you potential supplier use a ticket system to call you back when they are ready or is it fixed immediately?

 

 

Who We Blog: Third Party Despatch Programmes Versus Free Carrier Systems

 

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