Shipping and logistics operations are getting complicated with each passing day. With a rise in demand and fluctuating carrier rates, it is not easy to choose the right shipping methods. Gone are the days of manual shipping methods. They just don’t cut it anymore. This is how multi-carrier shipping caught on. And to manage it, multi-carrier shipping software also came into being.
Be that as it may, many companies are still unclear about the functionalities and benefits of a multi-carrier shipping software. What exactly does it do? What processes can it automate? There are too many questions and not many answers, which is why we have come up with this blog.
What is Multi-Carrier Shipping?
Before we move on to the software, let’s gain some clarity on what multi-carrier shipping is.
Multi-Carrier Shipping – Shipping using more than one carrier to fulfil orders. |
Have you come across the ‘Fulfilled by Amazon’ (FBA) label when shopping through Amazon? This label means that Amazon handles the storage, shipping, and all other processes related to your order. However, with some items, these processes are handled by third parties. This is how multi-carrier shipping also works. Businesses use more than one shipping carrier to ship and deliver their product.
Think of it this way: you can partner with Delhivery, FedEx, BlueDart, or any other shipping carrier to ship your products. But why limit yourself to just one fulfillment partner? You can use two or three of them. This will help you choose the best option after comparison. You can thus reduce costs, avoid delays, and improve delivery coverage.
But, there is a catch. You cannot compare rates and ETA’s manually when you have hundreds of items to ship. So, while partnering with multiple carriers seems like the best option, it is hard to handle the process manually. So, what you need is the best shipment tracking software, but it should have the ability to handle multi-carrier shipping. The good news is that thanks to technology, we already have a solution for that dilemma. And that solution is multi-carrier shipping software.
What is a Multi-Carrier Shipping Software?
So what is this much-lauded software all about?
Multi-Carrier Shipping Software – A carrier management system/tool that helps businesses manage multi-carrier shipping. |
A multi-carrier shipping software integrates with different carriers. Then, it chooses the best option for shipment. The multi-carrier logistics platform also automates the whole shipping process that follows. This includes tasks such as generating shipping labels, tracking shipments, and comparing rates.
Benefits of a Multi-Carrier Shipping Software
The basic function of a multi-carrier shipping software is to manage multi-carrier shipping. However, its benefits go far beyond that. Here’s a closer look at the benefits that you will gain from implementing a multi-carrier shipping software:
1. Automate Shipping Processes
The most apparent result of implementing a multi-carrier shipping software would be automation. Various shipping processes will get automated and streamlined. This includes processes like tracking and notifications. The software also offers shipping label automation. Consequently, you will also notice that errors get reduced, your workers are freed up, and you save both time and money.
2. Integration with Existing Systems
If your business is already using other logistics platforms, you don’t have to worry about integration. Most carrier integration software can be seamlessly integrated with existing systems, be it eCommerce platforms, ERPs, or warehouse management systems. This will help you create a system devoid of data silos.
3. Real-Time Shipment Monitoring
Multi-carrier shipping software will also help you track all your shipments better. Regardless of the carrier each shipment is assigned to, you will be able to track it. This advanced shipment tracking software will give you real-time updates. They will even provide alerts in the form of notifications. This will provide you with complete visibility.
4. Better Delivery Performance
This one has to be the most obvious benefit of multi-carrier shipping software. When you have access to multiple carriers, you get the best option. The software will compare rates, delivery times, etc, and make the best possible decision. This will lead to faster deliveries, improving customer satisfaction.
5. Reduce Costs
A multi-carrier shipping software compares rates across multiple carriers. Then it chooses the most cost-effective option for each shipment. This functionality is at the core of this system. This will ensure optimal spending and reduce overall costs, which is the primary goal of any smart logistics software.
6. Easily Scale
Multi-carrier logistics platforms will allow you to switch between carriers. You can base this on your service levels, destinations, and costs. This flexibility allows you to scale easily and grow.
With Multi-Carrier Shipping Software vs. Without Multi-Carrier Shipping Software
| With Multi-Carrier Shipping Software | Without Multi-Carrier Shipping Software |
| Automated carrier rate comparison | Manual carrier rate comparison |
| Instant rate comparison | Time-consuming rate comparison |
| Automated shipping label creation | Manual shipping label creation |
| Real-time delivery tracking | No real-time delivery tracking |
| Real-time notifications | No real-time notifications |
| Eliminates errors | Prone to errors |
| Last-mile delivery optimization | No last-mile delivery optimization |
| Centralized carrier management | Scattered carrier management |
| Easy to scale | Difficult to scale |
| Easy integration | No integration possible |
Why is a Multi-Carrier Shipping Software Essential in 2025 and Beyond?
The logistics industry has changed drastically in the past few decades. New technology has entered the market, e-commerce has peaked, and customer expectations have changed. Consequently, it is not acceptable now to just provide basic services. Your business needs that extra edge to stand out among the competition. Moreover, the industry has now become much more complex. Here are a few characteristic features of the logistics industry at present:
1. Rising Customer Demands
Customers no longer just expect safe shipping. They demand transparency, faster last-mile delivery solutions, real-time tracking, empathetic customer service, etc. The list is endless, and if you do not heed these demands, you will be left behind.
2. High Competition
With more players entering the industry each year, the competition will only continue to rise. In such a scenario, it is very important to stand apart. The best way to do this is to enhance efficiency and customer satisfaction through digital tools and software.
3. Supply Chain Challenges
The supply chain is currently facing a variety of challenges and disruptions. To get over these disruptions, there is only one way, and that is to leverage various shipping platforms. These platforms will offer you the agility to adapt to disruptions. For instance, you can easily bypass these disruptions by relying on multiple carriers through a multi-carrier logistics software.
4. Technological Advancements
The industry is changing. It is now welcoming technological advancements like AI and machine learning. This has resulted in increased profits and enhanced efficiency for many logistics companies. In view of this, it is imperative that you adopt the right shipping software solutions in order not to be left behind.
5. Regulatory Compliance
Different countries have different laws and regulations. This means that you need to navigate them all to avoid hefty fines and loss of reputation. But the good news is that modern logistics systems like the multi-carrier software have made this process a lot easier.
All these factors have prompted businesses to adopt new shipping automation tools and other software to enhance their operations. Among these, multi-carrier shipping software has become unavoidable for many companies. So, if you wish to overcome supply chain challenges, ensure compliance, enhance customer satisfaction, stay competitive, and future-proof your business, implementing a multi-carrier shipping software becomes inevitable.
Conclusion
Many logistics and e-commerce companies view multi-carrier shipping software as a transformative solution. This software single-handedly offers a business with automation capabilities, real-time shipment monitoring, enhanced delivery performance, scalability, and the ability to meet evolving customer demands.
We would say that, as we sail through 2025 and beyond, adopting and implementing a multi-carrier shipping software is not just advantageous, it is unavoidable.