Thursday, December 21, 2017

Key Factors Driving Effective Freight Rate Management Software

What is the one decisive factor for any logistics provider? Being able to manage rates effectively. As an NVOCC or freight forwarder , it is imperative for you to track and keep up-to-date records of the frequently changing carrier rate contracts with applicable surcharges and other amendments. This information would allow you to quote the best and accurate rates at the quickest to help your clients make the most economical decisions for their business. An automated software package can control rate management and therefore increase accuracy and efficiencies. If your management team is not quite on board with freight rate management software, here are some important factors that should be considered in the decision making process.
Technology Platform
The multitude of options in technology is becoming a differentiator for selecting the most robust software for rate management . The need of the hour is a cloud-based, agile rate management system with multi-modular and multi-modal functionality, which covers the entire logistics network of ocean, air, and ground transportation. The front-end graphical interface should synchronize and allow for easy access to digital rates matrix repository. In today’s highly competitive environment, accuracy determines the service level of the NVOCC and freight forwarders and acts as a bridge between retaining and losing customers.
Quality and Ease of Managing Quotes
Quoting is the starting point for generating potential revenue. The software must be conducive and provide supportive features to aid in quote management, such as the ability to search for most efficient commodity specific rates, surcharges, vessel schedules , and transit times for multiple carriers.
The software should provide both specificities, as well as variability. The system needs to have specific modules for handling various haul types, such as Ocean FCL, Ocean LCL, air freight, LTL, and RO-RO . It should have the ability to offer quick rate solutions for a variety of container sizes linking with intermodal freight rates with details of validity and expiry of rate.
In addition, an efficient quoting system should also have the functionality to have an end to end view of buy and sell rates, profit margins, and all-in pricing to aid in quick quoting. The system should have the option to quote in multiple currencies and overseas surcharges in foreign currency.
The automated feature for profit margin would be time-saving and eventually provide peace of mind to the NVOCC and freight forwarders .
Finally, there should be a capability to send the quotes to the customer through an inbuilt emailing system for booking and also have the functionality to easily retrieve and use them in future.
Integration with Existing Management Systems
When considering any freight management software, the ultimate goal is to find a service that works with the existing software systems. The technology and the set up should be such as to be compatible with commonly used systems in your business domain. For instance, it should have the EDI integration with client operating system for creating rate quotes and connecting with web services to determine intermodal rates.
Value Proposition for Downstream Processes
An effective rate management software can bring in tremendous value proposition to the organization. It works as a central digital repository of vessel schedules , transit times, buy and sell rates, as well as applicable surcharges with an insight towards calculating bottom line. Investing in the rate management software reduces invoicing errors. This drastically reduces the time required downstream to correct the billing errors, which improves margins and service quality. An ideal rate management software should also feed the organization with business intelligence reporting for the sales team—giving them direction and a roadmap.
If you are ready to take the next step in freight rate management software or logistic BPO services, let us assist you. Contact Info-X Software Technology to request a quote. We offer innovative transportation software solutions and back-office services for last 16 years assisting NVOCC , freight forwarders , and shippers across continents.