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How Logistics Software Can Benefit Your Business

Julia Beyers Aug 28, 2019
In the times when more companies like Amazon are expanding their logistics infrastructure, it becomes essential for businesses to utilize transportation management software (LMS/TMS). Since new strategies emerge regularly, you want to jump on the bandwagon and attract more clients, as well as retain the existing ones.
Here, we want to focus on the approaches to optimizing logistics with digital systems.

First, let’s highlight how market innovations (such as same-day delivery by Amazon or free shipping by Walmart) are reshaping the world.
  1. Customers become more demanding. People understand that they can get high-quality service for the same price and start looking for similar offers everywhere.
  2. New software is developed. Digital systems for logistics management evolve and become a must for any business.
Respectively, if your company deals with supply chains and makes use of transportation services, it’s time to start implementing the dedicated software.

Understanding LMS

Logistics management systems are designed to monitor and optimize processes related to transportation of goods.

Generally, they streamline the flow of products between suppliers, manufacturers, distributors, and consumers.

Being essential for the entire supply chain, an LMS uses planning and tracking to manage the following:
  • Transportation
  • Warehouse
  • Inventory
  • Third-party interactions
  • Supply and demand
The software itself often becomes a part of ERP systems designed for corporations which deal with both procurement and shipping processes.

Logistics applications increase efficiency, cut expenses, make transportation more transparent, and boost customer satisfaction.

Challenges in the Logistics Industry

Traditional logistics sector faces several issues related to human error, tech problems, and highly competitive environment.

Mainly, managers are responsible for erroneous decisions which lead to delays or miscommunication between different parties in the supply chain.

Inadequate shipping can result into damaged goods and force clients to abandon cooperation
Hence, businesses suffer time and money losses because of extra transportation costs, energy or labor.

In this case, streamlined interaction between parties and comprehensive risk evaluation can resolve the existing issues.

Therefore, advanced software is critical for modern companies that are going to expand their presence on the market.
Still, it’s important to realize which features can help here exactly.

Core Functions of LMS

Before ordering or creating an application, it’s crucial to perform an in-depth analysis of your company’s needs and goals. In such a way you can define the exact list of app features which will be the most useful. Moreover, the analysis can help in spotting business process weaknesses, so you will be able to modify the existing workflows.
Generally, transportation logistics software features fall under three modules called planning, execution, and analysis. The first one provides for creating proper transportation algorithms which consider distances, timeframes, costs, and goods’ types.
Using an LMS, managers can plot the best routes, for instance. The second part stands for implementing previous plans in real time by keeping contact with carriers, customs, ports, stops, etc.

This module helps to streamline the document flow, as well. Finally, the last element utilizes KPI to analyze performance and delivery quality.
Basically, you want to get the following features from the above mentioned modules:
  • CRM. Helps to engage clients because they can check the delivery status and conditions. Moreover, your employees will be able to answer any questions quickly thanks to immediate access to core data.
  • Document creation. Cuts routine paperwork thanks to digital environments. Along with other shipping documents, you want to create bills of lading which facilitate transactions and get rid of numerous checks.
  • Finance handling. Facilitates accounting processes by using top-notch finance tools like automated tracking of payables/receivables, reviewing transaction history, and managing general ledger.
  • Forecasting. Since supply and demand are the main market indicators, software with prediction analysis tools is wonderful. It optimizes schedules, reduces inventory glut, and increases customer loyalty.
  • Inventory management. Respectively, this module helps with analyzing existing goods and delivery methods. Real-time constantly updating data always gives a clear view of current and planned inventories or warehouses.
  • Multi-client compatibility. The last feature is more technical. If software architecture supports cooperating with several clients simultaneously, you can develop more advanced workflows to handle multiple projects.

Software Benefits

Considering the dual nature of modern markets where the companies and the customers alike should benefit from using logistics software, we have divided pros into two categories. They are true for different industries because of the universal principles of shipping.

Customer-Oriented

People who purchase goods online face three key problems, according to the BigCommerce insights. 27% of the respondents hate inability to check an item before paying, 18% consider high transportation costs the main issue, while 15% don’t like waiting long for their goods to be delivered
Efficient software can solve these problems thanks to automated reminders, AI-driven helpers, and even test-free products. Here are the key benefits of an LMS for clients:
  • Multiple shipping options
  • Transparent delivery policies
  • A clear understanding of costs
  • Real-time tracking
  • Regular info updates

Business-Oriented

When your customers are happy, you get more money from them, it’s obvious. But logistics software can bring even more benefits.

For instance, companies with comprehensive management solutions can relieve their employees of routine monitoring tasks thanks to automated analytical and reporting features.

Some More Advantages

  • Insights into profitability
  • Evaluation of performance
  • Resource-efficient management
  • Analysis and prediction of supply/demand
  • Integrations with ERP and CRM

Final Thoughts

Nowadays, the entire world focuses on digitization and streamlining of all existing business processes, so automated supply chain management is crucial for teams which deal with transportation tasks.
Even if you order small portions of wood from the nearest sawmill, you should consider installing logistics software, not to mention multinational corporations which deliver smartphones all over the world.
Regardless of the company type and industry, we suggest evaluating your business tasks before launching any application and consult with the experienced specialist.
Developers knowing your domain might save time planning and delivering logistics solution you’re looking for.