Thursday, September 26, 2013

Should You Have Single or Multiple Shipping Software Providers?


Should You Have Single or Multiple Shipping Software Providers?

Before heading to the market for liner principal software, it is important, first of all, that you decide on the IT structure of your supply chain. Do you want to stick with a single vendor capable of providing integrated shipping software solutions or consolidate services from multiple ‘best of breed’ providers?

The good thing is that, while both options have their own pros and cons, you won’t go wrong if you choose one or the other. However, when you do choose, you must know the ‘whys’ of whichever option you take. To help you out, here are two main advantages of having a single shipping solutions software provider:

1. Convenience
If you could find everything you need in one store, would you want to go and look somewhere else? Of course, not! In the same sense, why bother dealing with multiple software vendors when you can get all you need from a single provider?

2. Accountability
When you have a single vendor for all your supply chain requirements, that company has full accountability over your entire IT system. This means that in case of system failure, you won’t have a hard time figuring out who’s to blame. Therefore support, fault isolation, and troubleshooting are quicker and more effective.

On the other hand, sourcing liner principal software from multiple providers has its own benefits:

1. Cost
Partnering with two or more shipping software companies is a way to create “competitive tension” between providers to get the best bargain.

2. Specialized services
When you divide your logistics requirements to two or more vendors, you can leverage best-of-breed providers for specific segments of your supply chain system.

While there is no guarantee as to which of these two options is better, you can rest assured that both are capable of delivering results in terms of cost and efficiency. You can always make the right choice by carefully evaluating your supply chain requirements and discussing your options with everyone involved.

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