When we think of automation the general perception that companies have is the digitalization of their business process. However the approach to automation differs from company to company. It may or may not involve multiple softwares depending on the understanding of each company. The one common mistake that can be seen across freight and logistics companies pursuing automation is opting for multiple solutions for various operations be it freight, warehouse, transport or any other service, and finance.
The use of single software for all logistics operations is central to the success of any company in the industry. Generally the term ERP refers to an enterprise-wide software. But many ERPs are generic in nature and some that are designed for a specific industry, like logistics in our case, do not cover entire business needs; they often integrate with third party solutions to give complete end-to-end coverage.
When we say single we are referring to software comprising all aspects of your business including operations like freight, transport and warehouse, billing, finance, track & trace and customer service. The advantage that you get from such software can be enormous compared to an ERP which integrates certain third party solutions. An ERP system that integrates a third party financial solution or for that matter warehouse or transport solutions cannot give you the advantages of s single software.
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Even in cases where best -in-class third party software are integrated, the ERP fails to deliver optimum results. It is quite natural for practical problems to occur when an attempt is made to integrate two different software. Since the third party software may not be developed with the specific goal of integration there usually is a variance in the flow or exchange of data. The applications do not talk to each other in the most favorable way.
With single software the question of integrating two or more software does not arise at all. You are assured of a host of benefits arising from the seamless flow of data from one vertical operation to another and also from the operations to financial accounts. Overall you can perform efficiently, improve workflow, collaborate better and improve transparency across organization.
Originally Published in Portcalls Asia Magazine
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