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.
