Freight Broker Software

Buyers guide

While larger-scale logistics solutions (known as "integrated suites" of software) tend to cover a wide variety of supply chain functions, freight software programs—generally marketed as “freight forwarder” or “freight broker” software—are specialized logistics solutions that focus on the shipping phase of the supply chain.

System features will vary depending on the vendor, but some freight software packages offer inventory control functionality, such as order and invoice automation, and dispatch capabilities in addition to shipping functionality. Because these features can be specific to certain shipping needs, it’s important to find the freight software system that best suits your business.

To help you understand the market, we’ve put together this buyer’s guide. Here’s what we’ll cover:

What Is Freight Software?
Common Features of Freight Software
What Type of Buyer Are You?
Pricing: Web-Based vs. On-Premise

What Is Freight Software?

Freight software is a type of logistics software used primarily for tasks such as shipment quoting, carrier selection and route planning, tracking shipments, dispatching and inventory management. Many third-party logistics (3PL) businesses use freight software to facilitate their daily operations.

While some vendors offer freight software as part of a larger, integrated logistics platform, those systems may be too complex or cost-prohibitive for small to midsize shipping businesses that only need functionality related to their specific operations.

There is no uniform definition for these products, due to their variation in functionality. However, freight brokerage products are often geared towards specific types of businesses—for example, smaller 3PLs that only need to facilitate the shipment of goods between a manufacturer and customer. Freight forwarder software, on the other hand, may include added functionality, as freight forwarders generally offer storage options and may even ship goods themselves (more on this below).

Carrier selection feature in URoute frieght software

Common Features of Freight Software

Because the freight software category encompasses a variety of different products, it’s important to select the features specific to your business needs. Many freight software products offer some combination of the following features:

What Type of Buyer Are You?

Again, due to the variance in features that can be included in freight software products, it’s best to begin evaluating options based on the nature of your company’s operations:

Freight brokers. For companies that facilitate the bidding process between manufacturers, shippers and buyers, such as smaller or growing 3PL companies, freight broker software with a simple quoting feature may be the most functionality that is needed. These systems typically include additional tools such as invoicing or shipment tracking, though they may not be necessary for your business.

Freight forwarders. For businesses that do the above and offer additional storage or warehousing services for goods throughout the shipping process, freight software with added functionality may be required. This might include an inventory management component, which would help users keep track of the items coming in and out of their facility, or dispatching capabilities to assist with the shipment of goods.

Pricing: Web-Based vs. On-Premise

Pricing for these solutions is dependent on the functionality they offer and the deployment model that is chosen. Deployment models include:

• Web-based. This is software that is hosted online, on servers managed by the software vendor, and that can be accessed by users from anywhere via an Internet browser. These are generally subscription-based (“Software-as-a-Service”) systems that charge either a monthly or annual fee, usually based on the number of users who will need to access the system.
  
  Web-based deployment models are the most common freight software offerings on the market, particularly for small to midsize businesses. This is because these solutions often have a lower cost of entry than on-premise systems: There is no setup fee or additional hardware that needs to be purchased.
 
• On-premise. This software is hosted on the buyer’s own servers, typically at the business location. For this type of software, buyers typically must purchase an upfront, perpetual license for continued use of the software; there is no additional subscription fee. However, users might see additional fees for upgrades, customizations or maintenance, and hardware may need to be purchased.
  
  On-premise freight software solutions tend to be larger, more expensive systems that include a wide degree of functionality; they may actually be more similar to an integrated suite of transportation management or logistics software. However, these systems may be the right fit for certain businesses—particularly those with larger shipping operations.

Whichever deployment model you choose, there is one basic rule to keep in mind: the more functionality your freight software provides, the higher the price will be.