What is Logistics Software?

The Merriam-Webster Dictionary defines logistics as, “the handling of the details of an operation.” At the heart of the profitability and overall success of a business is an efficient logistics system. Managing production, parts, inventory, and shipments all fall under the responsibilities of the logistics, or supply chain, management department. Such a large job includes the daunting task of managing the many details associated with logistics. Employing the use of a good logistics company can greatly affect the outcome of the logistical branch of a business. However, hiring a company that specializes in logistics can prove to be very costly to carry out. Therefore, utilizing a logistics software program may be more economical for small to moderate facilities.

When a logistics company is used, it will handle the day to day management of the business. It will have its own trained personnel that can micro-manage every detail of the supply chain. For a large company with big operations, this is a necessity. Trusting such a vital factor to an untrained person could be detrimental to the business. Many manufacturing enterprises will also maintain a logistics manager as well. Large companies will recognize cost-saving benefits that will offset the expense of continued use of a logistics company.

Unlike a large manufacturer, even a small company can benefit from logistics software. Many software makes have designed an extremely easy to use, user-friendly interface. They are fully automated and can come as a suite with many optional applications or individually loaded for specific applications only. Add to the customizable features, that they often offer online and telephone tech support; this software pays for itself in very little time.

One thing that logistic software does is use a database to make and store various records necessary for keeping track of the many processes associated with a supply chain. The software can manage the distribution, warehousing, inventory, transportation details and expenses, and customer-friendly customer service options.

Some software makers also offer global visibility, bar-code scanning, billing administration and automated issue reporting to increase the value of the services that a business gives to their clients.

A business can track how many parts they have on hand and ordered, how much completed merchandise is available, current trucking routes and loads available, and log customer service interactions. Being able to input this information seamlessly and with as little effort as possible, every business that uses logistics software or a logistics company can save money. High inventory levels cost company’s money with the operating cost associated with warehouses. Being able to communicate with a client when a load will be available will increase customer satisfaction levels. And finally being able to log customer problems, a company can identify a trend before it becomes too overwhelming.

There are several services available to manage a company’s logistics department. Without selecting a method to manage a company’s logistical issues, it will loose money and potentially suffer from low customer and employee satisfaction. Using a software or company is very seldom optional. Therefore, the important thing is to find one that best suits the needs of one’s company, at a cost they can afford, and utilizing all its features to develop a business that is well run and sure to be successful.

Logistics Software Removes the Need For 3rd Party Logistics Providers

The more products a company ships, the more shipping costs become subject to cost saving strategies. For most companies, realizing the most economical shipping solutions depends on the implementation of the most popular form of supply chain software (SCS): logistics planning software. On the most basic level, the solutions offered by logistics software improve a company’s phased planning measures, product sales forecasts and scientific safety stock. Some companies hire 3rd party logistics providers, but more and more companies are turning to logistics software in place of 3rd party logistics providers for two reasons: logistics software offers the same level of quality as 3rd party logistics providers and it offers it a much lower price.

When companies use logistics planning software, they can centralize and integrate their product delivery system by allowing drivers at different sites to connect using the most efficient travel routes, which increases product delivery time and decreases fuel costs by reducing empty running. Regardless of which style of logistical planning a company needs to implement-inbound logistics, contract logistics, LCL/FCL, LTL/FTL, etc.-logistics planning software allows companies to arrive at advanced planning and scheduling solutions that can significantly increase their bottom line. By implementing this software, companies can improve the cost effectiveness of the following product distribution arrangements, among others: container planning and empty container repositioning, intermodal transport, multi-hub and multi-leg transport, cross docking, multi-compartment trailer planning and inventory management.

One example of how logistics software helps companies reduce their shipping costs can be seen in less than truckload (LTL) shipping arrangements. Especially beneficial for companies that don’t ship a high volume of goods, LTL shipping allows companies to pay a fraction of full truckload (FTL) shipping costs. LTL shipping combines multiple partial truckloads into a full truckload and splits the full load price between the shippers. For trucking companies, LTL is beneficial because it draws in customers who would traditionally ship their good by parcel carrier. Another example of how logistics software can save companies money is by examining the characteristics of shipping routes. For example, while the shortest route might seem to be the fastest route, this software can reveal that a longer route would be faster due the traffic characteristics of the shorter route.

Without this software, most companies continue to pay more for logistical solutions than they need to. While research shows that both logistics software and 3rd Party logistics providers can help companies reduce their annual shipping costs by 10 percent at the end of one year, opting for this software adds to the savings. When companies use logistics software, they increase their bottom line in basic two ways: by delivering their products to the sales floor faster and by reducing the cost of getting them there.

ERP Software System Integration for Fast and Quick Decision

ERP (Enterprise Resource Planning) software system is mainly implemented to integrate the major functional units of an enterprise with the latest advancements of information technology. Integration of business units helps in better flow of information and collaboration within and outside the organization, irrespective of its geographical location. ERP mainly targets in integrating three important components of a business procedure like Practices in Business Management, Information Technology and the business targets. This integration has helped the big and medium organizations to streamline their business processes, through the optimized use of assets, ultimately producing multi benefits. The beneficial features of ERP coupled with its successful implementation, have encouraged small and medium sized enterprises to switch over to this software system, to face new challenges in this competitive market. As a result, there has been marked improvement in productivity and profit margins.

ERP software system involves huge software architecture to streamline the distribution of data and information throughout the enterprise scattered in different geographical locations. This streamlined flow of information and communication is managed through the well developed central repository, which forms the core of the ERP software system. The central repository gathers all the important information from the organization and supplies the same to the different units as per requirement, which enhances the speed, performance and the competence of the organization.

Integration is the main aspect of ERP software system. Present day’s ERP architecture supports the various major functions like customer relationship management, human resource management, asset management, Finance, Supply chain management including the logistics and manufacturing warehouse management. ERP system has enabled the integration of the operations of the standalone units in a single platform in a coordinated and unified manner. This integration has enabled fast decision making irrespective of the geographical location and synchronizes the workflow that contributed a lot in the business growth. ERP architecture also provides the flexibility to accommodate customized software modules according to the organizational requirement, which can be updated regularly.

ERP implementation is a daunting task that requires very careful planning by a team of experts. This implementation involves huge expenses and is time consuming. So it is necessary to judge the requirements of the organizations first, and then plan for the ERP implementation accordingly. This planning involves five crucial stages like Structured Planning, assessment of the business process, compilation of data, educating the staff and testing and finally the usage of ERP and its evaluation. Any flaw in one of the stages can cause a failure in ERP implementation resulting in heavy financial loss for the organization.