KAT Solutions

How Distribution Management software can help Reduce Transportation Costs for businesses

Shipping costs are moving skyward with a 4.9% rate increase announced by FedEx, UPS, and similar carriers. The trucker’s market alone keeps breaking records. DAT Rate Review has revealed the average US trucking rate reached $2.32 per mile in June 2018 ($0.52 growth compared to 2017). July has seen another boost totaling $2.45 per mile.


Businesses in today’s global market are continuously looking for ways to increase their bottom line by lowering operational expenses while keeping the quality of their products and the pleasure of their customers. Transportation costs are one of the biggest expenses for enterprises, and they can be decreased by using distribution management software.


What is Distribution Management Software?

A computer program called distribution management software aids companies in managing their supply chains. It offers a complete solution for handling order processing, logistics, and inventory management. Also, it can assist companies in tracking and managing their transportation activities, which can ultimately assist in lowering transportation expenses.

Distribution Management Software can help reduce transportation costs by using different ways like:


Route Optimization:

The optimization of delivery routes is one of the main ways that distribution management software may assist organizations in lowering transportation expenses. The software can choose the most effective delivery routes, cutting down on trip time and distance, using GPS monitoring and real-time traffic data. Businesses can lower overall transportation costs, fuel expenditures, and vehicle wear and tear by limiting the distance traveled. By ensuring that the correct products are available at the right time thanks to distribution management software, firms may shorten delivery times. To make sure they have the products that customers want in stock, firms can use the software to estimate demand and track inventory levels. This may lessen the need for expensive expedited shipping.


 Load Balancing:

By combining several orders into a single delivery, distribution management software can also assist firms in maintaining a balance between their workloads. Businesses can cut down on the number of trips made and eventually lessen transportation expenses by making the most of

each delivery’s capability. When deciding how to organize shipments, the program can examine order data and consider elements like weight, size, and delivery location.


Reduce labor costs:

Software for distribution management can also help organizations save money on labor. Several shipping and receiving processes can be automated by the software, which eliminates the need for manual labor. Employees may be able to concentrate on other duties as a result, which might lower labor expenses and boost productivity.


Real-time Visibility:

Businesses can see their transportation operations in real-time thanks to distribution management software. This enables them to keep an eye on their delivery procedures, trace shipments, and spot possible problems that can result in delays or added expenses. Businesses may proactively address issues before they turn into serious ones with real-time visibility, thereby cutting transportation costs and raising customer satisfaction.


Improved Collaboration:

With enhanced departmental and stakeholder collaboration, distribution management software can ultimately contribute to lower transportation costs. Businesses can find chances to optimize their transportation operations and make better-informed decisions by exchanging data and insights. Businesses can, for instance, ensure that shipments are prepared for pickup when the carrier arrives by sharing data between the warehouse and transportation teams. This cuts down on wait times and transportation expenses.


Efficient Warehouse Operations:

Businesses can save on transportation expenses by optimizing warehouse operations with the use of distribution management software. Businesses can decrease the time needed to prepare shipments and increase order accuracy by automating inventory management, order processing, and other warehouse processes. This may lead to more effective transportation operations and quicker order processing times, which will ultimately lower transportation expenses.


Reduced Paperwork:

Businesses can save time and money by minimizing paperwork and manual data entry with the use of distribution management software. Businesses can lower administrative costs and enhance the accuracy of their data by automating order processing and invoicing. In the end, this can save transportation costs by preventing delays and errors in transportation operations.


Better Carrier Management:

Software for distribution management can assist companies in more efficient carrier management, which can lower the cost of transportation. Businesses may identify carriers that consistently deliver on time and within budget by reviewing carrier performance data, which lowers the risk of delays and added expenditures. Businesses can further lower shipping expenses and boost their bottom line by negotiating prices and contracts with carriers.


Improve Customer Service:

Finally, distribution management software can assist companies in enhancing customer service. Businesses can boost customer satisfaction by ensuring that products are delivered on time by improving their shipping and delivery procedures. Repeat business and effective word-of-mouth marketing may result from this, which can ultimately increase income while lowering costs.



Distribution management software is an effective solution that helps save transportation costs for firms by automating warehouse operations, balancing loads, offering real-time visibility, enhancing cooperation, decreasing paperwork, and better-managing carriers. Businesses can increase their revenue while preserving the caliber of their products and the satisfaction of their customers by using distribution management software.