Larry Smith

Some carriers won’t even pick your freight up unless their ‘Inhouse Designed’ label is used to address the consignment. Different divisions from the same multinational group demand their label format-specific download protocol, and still require a printed consignment note.

So most shippers simply give up and use the ‘free’ dispatcher system supplied by the major carriers – providing they have room for the three or four systems and associated hardware on each packing bench.

And yes, for the carrier that has no IT requirements and still needs a ‘simple’ connote, the sender, who ships with 3-4 (or more) carriers’ sophisticated dispatcher systems, has to find a pen to complete the connote because the carrier systems only print (in the majority of cases) freight stationery for each specific carrier.

And then we have the download protocol, FTP, SOAP or email of text, Dbase, CSV, XL or various flat format files. Some of these download methods can take many minutes to send a couple of connote files, which, in turn, creates extra unnecessary traffic on company internet and email systems. Some of these file protocol systems are better suited to an environment at Cape Canaveral than for their prime purpose of ‘instant information transfer’ of connote data to carriers.

Some carrier systems totally rely on the production of freight labels from an internet site, which is real fun if you only have ten minutes to produce 50 labels over this very slow medium, and even ‘slower’ if your/their internet is down.

So if you don’t agree to use the carriers system, your freight:
1. Won’t be collected.
2. Cannot be scanned.
3. Information cannot be downloaded to carrier sortation equipment / track & trace / finance department.

Don’t panic - alternatives do exist that meet all carriers’ requirements from one multi-carrier software program (i.e. only one PC and printer needs to sit on your bench in the warehouse), and avoid you being ‘locked’ into current carriers, giving you the freedom of choice and the benefit of comparing carrier’s costs for the same movement.

Only one workstation and printer is required on each packing bench for the third-party, multi-carrier systems, which can be networked throughout the building. But how much does this system cost? Senders believe their carrier-supplied system is free. This may be true for the system itself, but it does have numerous intangible costs, including multiple user training and hardware cost issues.

So what’s the alternative? Third-party, ‘generic’ systems can be leased on a licence that offers numerous benefits over carrier systems, but like the famous ‘free dinner’, some can have hidden costs such as special label / connote stationery / download costs to carriers and other third parties, and expensive ‘extra features’ included on others free. Features to look out for in third-party systems are:
• Multi-carrier label designs (on an automatic default) for use on carrier-supplied stationery.
• Carriers rates to cost and compare each shipment.
• Excessive freight warning feature.
• Free downloads to all carriers.
• Generic connotes printed on ‘A4’ paper.
• ASN (advance shipping notice) to receivers.
• Numerous reports, including cost of freight as a percentage of sales value, cost centre freight allocation, as well as a ‘query by entry’, which allows reports to be tailored to capture any known detail on the shipping data file by carrier or client.
• Track & trace links.
• Multiple search fields for assisting customer service enquiries.
• Carrier invoice / statement reconciliation.
• Able to operate on stand-alone, LAN, WAN, Terminal Server or Citrix and can be ‘interfaced’ with all WMS supported environments.

So if you have run out of space on the packing bench for the numerous carrier hardware systems, or want more freedom on choice and the management reports that will assist you to control your distribution methods and costs, have a look at the numerous third-party dispatcher systems available.

Larry Smith is the managing director of FPOS, a freight management system provider. For more information call (02) 9893 7266, email larry.smith@fpos.com.au or visit www.f-pos.com.



* Excerpted from Australasian Freight Logistics Issue 12, June/July 2008 (p.17)

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