IDII Software Newsletter

Transportation Software Selection

Looking for new TMS (Transportation Management System) software?   Word for the wise – be specific in what one is looking for!   TMS is a very wide & very broad category of software.   It breaks down into five types of software that one might be searching for.   The five categories are:

1. Parcel Manifesting
2. Domestic Freight Software
3. International Freight Software
4. Freight Optimization
5. Trucking Software

Parcel Manifesting aka Shipment Manifesting Systems (SMS) is for package shipments (in a carton normally).   This software is for designed to (1) lowest cost freight to ship a package, (2) interface to a scale and printers, (3) rate the parcel, (4) assign a carrier tracking number to the parcel, (5) print a shipping label according to carrier specifications, and (6) electronically send the manifest log of parcel shipments to the carrier.    

Domestic Freight Software is designed for the Less Than Truckload and Truck Load shipments.  This software will have multiple modules such as Freight Order, Tender, Freight Payment, and Freight Audit.   Most have a web portal for carrier interaction.   This type of TMS is for domestic freight and it will receive & send a number of EDI/EDIFACT transportation transactions between the shipper, carrier, and receipent.

International Freight Software is similar to domestic freight software, but is designed for international shipments.   Many of these software vendors also have an extensive web portal and are multi-modal.  International shipments have legs – multiple modes of transportation such as ship, air, and truck.   In addition, landed cost components (all those addon charges) must be tracked accurately, so that the resulting entity receiving the goods has this information in order to properly calculated the true inventory landed cost (inventory cost plus multiple freight charges).     Most international freight solutions do NOT handle domestic freight – just a very few do!

Freight Optimization is one of the costlier modules to license, but is well worth the cost, due to the reduction in freight costs to the company.   One must be able to schedule – therefore plan via the freight optimization software – an optimized carrier and services.   If one has a window of time – generally at least 24 hours of time, between the freight order and the time it must leave the warehouse, one should seriously analyze the cost savings that a freight optimization solution can bring.     If you have a large number of LTL shipments with a time window – these could be optimally combined together to get the lower TL rate – via the optimization software.

Trucking Software is to manage the fleet, pay fuel tax to government authorities, as well as have a module on driver settlement.   For some odd reason, a good number of software companies with trucking software offerings do not offer the other 4 categories.  If one is after “trucking software” only – then indicate such and avoid using the TMS phrase.

Which categories are needed in your software project?   Definitely define what is needed in the RFP and be very clear on this.   Indicate the modules that one is after, with your goals and expectations clearly outlined.   One MUST indicate much more than “I just need a TMS”!     Be detailed and be precise - in order to obtain what one wants!

Philip Obal, philobal@idii.com
President
IDII

White Papers

Technology & Software Product News

Accellos One Warehouse is a fully integrated suite of products aimed at increasing the productivity, efficiency, and visibility of activities that take place in a companys warehouse and distribution operations. Seamlessly integrated with Sage Accpac ERP and Sage Pro ERP, Accellos One Warehouse provides rapid ROI for companies with up to several hundred warehouse workers. Accellos and Sage Software Partnership Announcement

*** JDA and I2 Merger Deal is OFF.   IDII advises that - When you buy/aquire/merge with another software firm - it is smart to make sure it is DEBT FREE  and bringing in the revenue.  I2 was not that way, as it is showing a 81% long term debt and very poor book value per share..   So JDA is saved/redeemed for another day, even though it must cough up 20 million as a penalty for NOT aquiring i2.    JDA is still better off by NOT completing the deal. See MMH article.

*** Freight Rate Benchmarking Feature Added To FreightMaster TMS.  Next Generation Logistics, Inc. (NGL) announced that it has added real time transportation benchmarking functionality to its FreightMaster TMS® Suite transportation management system. The NGLRateComp™ enhancement allows companies to load internally generated or externally purchased benchmark rates by freight lane into FreightMaster TMS® and have the system automatically compare existing rates to the benchmark rates.

NGLRateComp will make it easier for users of FreightMaster TMS to understand and know how their rates compare to those in the market place and identify trends more frequently. This feature will also empower companies of where they stand before negotiating new contracts with carriers. Additionally, NGL extends this transportation benchmarking as a service to users and non users of FreightMaster TMS® that shippers can subscribe to.

This new enhancement to FreightMaster TMS® provides a real time visual freight rate comparison as well as a custom reporting solution to conducting adhoc over/under analysis without spending extensive time and money.  Benchmarking capabilities is another key component for companies in controlling costs and managing their freight spend. See Press Release

*** Infor Cuts 5 Percent of Workforce.   In our opinion - this is now becoming a common occurrence in times like now. View Work Force Cut Article

Scripture to Ponder

For unto us a child is born, to us a son is born, and the government shall be on his shoulders.   And He shall be called

• Wonderful,
• Counselor,
• Mighty God,
• Everlasting Father,
• Prince of Peace.   

 Of the increase of his government and peace
       there will be no end.
       He will reign on David's throne
       and over his kingdom,
       establishing and upholding it
       with justice and righteousness
       from that time on and forever.
       The zeal of the LORD Almighty
       will accomplish this.   Isaiah 9:6-7/

Jesus is much more than a baby in a manger!  MERRY CHRISTMAS and a HAPPY NEW YEAR!!!

Famous Quotes For Business & A Better Life!

Wisdom is the reward you get for a lifetime of listening when you'd have preferred to talk. - Doug Larson

I am still determined to be cheerful and happy, in whatever situation I may be; for I have also learned from experience that the greater part of our happiness or misery depends upon our dispositions, and not upon our circumstances. - Martha Washington