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rating system, a first step is for a user to
determine if the software’s objective is to
select carriers or to determine the lowest
freight charges. A second is to gauge if
the pricing will be available through a
licensing agreement or on a “software as
a service” basis. Beyond those two fundamental elements, experts said there are
a number of common-sense factors that
users should consider when shopping for
a solution. Eileen W. Hart, vice president
of marketing and corporate communications for DAT, said users need to determine if the data source is reliable and that
the data stream is as real-time as possible.
Vaillancourt of RateLinx said prospective users should consider whether
the software can meet their needs across
all modes of freight. They should also
investigate how frequently their vendor
will update the information (ShipLinx
is auto-updated weekly) and how much
maintenance they would have to perform
themselves, he said.
Pesek of Cass said that a freight rating system should interface with leading enterprise resource planning (ERP)
systems like those offered by Oracle and
SAP. A platform should also support
global transactions, a key feature as more
companies expand into international
commerce. “The system should be able
to handle multiple [foreign] currencies,”
said Pesek, whose company is updating its
own legacy systems to manage more overall transactions and to build capabilities
needed to handle complex international
transactions.
Gregory of SMC3 said that large LTL
shippers using a TMS should ensure that
the freight rating software works with the
LTL tariffs that the users utilize. Shippers
should also opt for a program that can
crank out rates at a rapid pace, Gregory
said. This is especially important if the
rating software will be used to support a
network optimization initiative, an intensive and complex exercise that potentially
involves the analysis of millions of rate
and route combinations.
In addition, the freight rating tech-
nology should be compatible with the
core technology apparatus a user has in
place, Gregory said, adding that a user
should not have to re-invent its technol-
ogy wheel to accommodate rating
software.
For small LTL shippers that move
a relative handful of loads each day,
week, or month, Gregory recom-
mends a simple rating program
such as the one offered by Kansas
City-based Freightquote.com, which
was acquired late last year by C.H.
Robinson Worldwide Inc., the Eden
Prairie, Minn.-based freight bro-
kerage and 3PL giant. A provider
like Freightquote can give mom-
and-pop users the rate comparisons
they need without the cost of a full-
fledged TMS, he said.
