Optimizing Carrier Selection for a U.S.-Based 3PL Company

Client Overview

Industry: Third-Party Logistics (3PL)
Location: United States
Operations: International freight management with multiple carrier partnerships

Business Challenge

The client, a prominent 3PL provider, faced challenges in:

  • Complex Rate Calculations: Difficulty in accurately calculating shipping rates due to varying factors like fuel costs, discounts, margins, and diverse origin-destination pairs.
  • Carrier Integration: Managing integrations with numerous U.S. carriers, each with distinct APIs and data formats.
  • Optimal Carrier Selection: Inefficiencies in selecting the best carrier balancing cost and delivery time.
  • Scalability: Need for a scalable solution to handle increasing shipment volumes without proportional increases in operational costs.
Our Solution

Our Chennai-based software development company engineered a robust, scalable solution encompassing:

1. Advanced Rating Engine
  • Dynamic Rate Computation: Calculates shipping rates by considering:
    • Fuel surcharges
    • Carrier-specific discounts
    • Profit margins
    • Origin and destination ZIP codes
  • Real-Time Data Processing: Ensures up-to-date rate calculations reflecting current market conditions.
2. Comprehensive Carrier Integration
  • API Integrations: Seamless connections with major U.S. carriers, including FedEx, UPS, and DHL.
  • Standardized Data Handling: Normalizes disparate data formats for uniform processing.
3. Intelligent Carrier Selection
  • Algorithmic Decision-Making: Evaluates carriers based on:
    • Delivery speed
    • Shipping cost
    • Service reliability
  • Customizable Prioritization: Allows clients to set preferences (e.g., prioritize cost over speed).
4. User-Friendly Interface
  • Dashboard: Provides real-time insights into shipping options and costs.
  • Reporting Tools: Generates detailed reports for analysis and decision-making.
Results Achieved
  • Cost Savings: Reduced shipping costs by 15% through optimal carrier selection.
  • Efficiency Gains: Decreased manual processing time by 40% via automation.
  • Improved Delivery Times: Enhanced on-time delivery rates by 20%.
  • Scalability: Accommodated a 50% increase in shipment volume without additional staffing.
Technologies Utilized
  • Backend: Java
  • Frontend: Angular
  • Database: MYSQL
  • Integration: RESTful APIs, Webhooks
  • Deployment: AWS Cloud Services
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