Today, the market is mainly controlled by two key players. StromShoe and BlueJat are the biggest shipping solutions providers. There are also many small players on the market (We’ve changed company names).
Let’s go over key consideration points that will help you choose the right solution for your business.
Considering various shipping solutions will be crucial in optimizing your logistics.
Software architecture approaches:
- D365 Native. Most solutions today provide native D365 integration, enabling users to manage shipping directly within the D365 UI. However, for smaller enterprises, licensing costs can be a challenge since a full license is required for each shipping clerk.
- Outside of D365. Some solutions take a different approach by exposing shipping data externally and using an external portal to finalize shipments. In this scenario, shipping is being done using the D365 interface, and the data is exposed to an external web portal that generates the shipping label. This reduces D365 licensing costs and offers more flexibility, but it also creates reporting challenges and increases integration risks.
Packing UI flows
- Native D365 packing screen flow. This approach is most effective with the latest D365 feature releases, ensuring that new features are supported without requiring modifications to the shipping solution code. The user uses standard D365 pack/rate route forms to finalize the shipping.
- Custom packing forms. Larger shipping ISVs tend to create new custom forms to support the packing and shipping process. This provides greater flexibility and improved packing speed. However, keeping up with the latest D365 updates can be challenging, as custom packing flows are not directly aligned with the standard D365 packing/rating forms.
Let’s discuss other key considerations that will help you prepare for the call with the shipping ISV.
- Small parcel shipping carrier support.
- LTL shipping carrier support.
- Carrier integration approach.
- Additional features like insurance, international shipping, freight reclassification, and more.
- Product and support cost models.
Small parcel shipping carrier support.
A Shipping ISV solution typically supports a wide range of small parcel carriers, however, it’s essential to confirm that the required carriers and services are available out of the box.
Today, the big three—UPS, FedEx, and USPS—are a must-have to remain competitive.
If your business is located outside of North America, make sure to verify the shipping support for the carrier in your country, as the UPS shipping process from the EU might differ from ours.
LTL shipping carrier support.
This is a complex topic, as the number and type of LTL/TL carriers vary depending on the region. Many ISV solutions address this by integrating with third-party providers who maintain the constantly evolving API structures.
In the U.S. alone, there are about 25 major national players and over 500,000 smaller regional or local LTL carriers. For D365 shipping ISVs, offloading API maintenance to a third party is a common and practical approach.
When evaluating LTL carrier integrations, always request a live demo.
Carrier integration approach.
Smaller ISV solutions often integrate directly with shipping carriers. This approach reduces product costs since there is no need to pay for middleware to handle API calls. However, if the D365 shipping ISV is new to the market, relying on direct integration can introduce risks around maintaining up-to-date API structures.
Integrating through a third party adds extra cost but helps eliminate the risk of downtime caused by outdated API structures.
Additional features.
Business needs vary—some require advanced features, such as shipping invoice reconciliation, package insurance, and RMA support, while others do not.
A large feature set will increase the cost of the ISV solution.
The biggest mistake we see is companies buying software with numerous features but only utilizing a small portion of them.
It’s best to ask for a full list of features from the ISV and assess if your business really needs that toolset.
Product and support cost models.
The largest players in the market come with the highest costs. Their solutions offer the most features and draw on years of experience to address complex business needs. These products are typically offered on a subscription basis.
Smaller players typically use a subscription model combined with pay-as-you-go support hours. However, some newer players charge a one-time product fee and depend heavily on support hours for most of their revenue.
It’s best to compare multiple solutions and ask the right questions.
At Reach, we bring years of expertise and can help you choose the right solution for your business.
