Global freight is an ever-growing and dynamic domain. With transportation intrinsic for the smooth functioning of supply chains, the freight management system market has immense potential. The freight management system market is expected to grow at an estimated CAGR of 10.1% by 2023. The growth also opens new avenues for advanced technological innovations and adoptions. One of the most popular trends in the industry is the evident proliferation of SaaS (Software as a Service) over the past few years.
The emerging SaaS platforms have accelerated the digitization efforts in the industry and helped mature logistics solutions. Software-as-a-service has changed the logistics software industry’s dynamics and proven to be a more inexpensive alternative to heavily investing in legacy systems. A decade back, the Transportation Management System was the only modern logistics solution, expensive and accessible only to large shippers. The SaaS model of transportation solutions has recently caught up, not only because of its affordability but also because of its ease of use.
What is SaaS?
Software as a Service is primarily a cloud-based solution where users can access an app that is made available over the web. The online platforms don’t need to be downloaded on a device. Instead, the user can access its functionalities anytime and anywhere using the internet. There are plenty of SaaS-based platforms that we use extensively in our daily lives for personal and professional needs. Businesses of all sizes extensively use SaaS applications for other business functions such as sales and pipeline management, marketing management, human resource management, and finance management. The emergence of such platforms in logistics have further extended their reach.
What is SaaS in Logistics?
In the context of logistics, a SaaS platform can serve numerous functions such as acting as a Freight Marketplace or position; as an Ocean Freight Tracking System; assisting in Freight Audit and Payment solutions; or more commonly as a Transportation Management System.
Digital freight forwarders, for instance, are primarily using the SaaS based business models to provide real-time booking capabilities backed by dynamic pricing to shippers over a web platform. Instant quote generation and instant rates while providing real-time and actionable insights are a few of the other service offerings.
On the other hand an Ocean Freight Tracking System can enable businesses with real-time and predictive data about shipments over web-based platforms or an app. While a SaaS TMS is a single-instance and multi-tenant environment where various supply chain players can use a shared platform via the internet. These SaaS-based solutions’ functionalities are closely comparable to the on-premise systems and deliver the same results. There are numerous benefits of choosing a SaaS-based service provider for your business freight management functionalities.
Benefits of Using a SaaS Platform
Software as a Service solution in logistics caters to a business’s demands while simplifying, streamlining, and creating an integrated flow of processes. Most legacy software has existed as decentralized and fragmented models without much optimization options or quite complicated user experience. The primary benefit of using a SaaS-based freight or transportation management solution for businesses remains the cost efficiency, but that’s not all. Here’s why companies are rapidly switching to the SaaS model more than ever now:
- Affordability: SaaS platforms or applications are subscription-based, which means significantly lower set-up costs than using licensed legacy software to manage your logistics activities. This further translates to lower investment in setting up extensive IT infrastructure.
- Enhanced User Experience: SaaS is easy to use and available across most smart devices. All you need is a stable internet connection, and you can manage your logistics operations from anywhere at any time. Now, when convenience drives all our purchase decisions, a SaaS-based platform or app makes life easier for shippers, logistics managers, logistics service providers, and other players in a supply chain. The reports and the dashboard analytics add a more refined touch to how critical data is made available in the most accessible manner. These platforms also significantly reduce the users’ learning curve and help mitigate additional training costs generally required for legacy software.
- Seamless Integration and a Scalable Solution: SaaS providers use API-based integrations extensively to simply plug-and-play the solutions to your existing ERP or TMS systems and let them work as an extension of your current framework. These solutions are very scalable and enable customization as per business needs and demands.
- Hasslefree upgrades: SaaS providers mostly manage the updates and upgrades, making the process hassle-free for users.
- Actionable Data Insights: Data analytics is one of the major highlights of these SaaS models of freight management solutions. The data is presented to the users in an accessible manner and can be customized based on the metrics that matter the most to a business. The data analytics provided are critical and help highlight trends, impending disruptions, shortages, or other essential insights that can aid informed decision making.
What can an Ocean Freight Visibility SaaS platform do for your business?
At Ocean Insights, we understand the importance of ocean freight visibility for businesses, whether it’s a shipper or a logistics service provider. Now more than ever, it has become necessary to have more accurate and real-time data about where your shipment is in the supply chain, not just in transit. Such visibility can do wonders to save cost, increase process efficiency, and make supply chains more resilient and agile in the wake of any disruption.
The Ocean Insights SaaS-based platform or the Ocean Freight Tracking System (OFTS) is an online tool that equips your business with desired predictive intelligence to optimize your supply chain network. Having access to real-time visibility analytics for your shipments saves additional costs by reducing detention and demurrage charges by optimizing the free-time.
The in-depth knowledge about shipment visibility can help identify desirable carriers and, therefore, increase your negotiation power. Supply chain optimization is a critical business goal, and visibility can help you attain it. Accessing such vital information and leveraging it to assist decision-making over a web-based platform or a mobile app is a tried and tested method to increase your profitability and consistently prove ROI. To learn more about how our Ocean Freight Tracking System aligns with your business goals, contact us today.