How to Choose the Right ERP for your Logistics Business

Unlike other industries, logistics is not limited to a single line of activity. A typical logistics company may be involved in one or varied activities such as Freight Forwarding, Transportation, Warehousing, regulatory compliance, 3PL, etc. And then there are the typical activities of a business-like Marketing, Sales, Customer Service and Finance, etc. These features make the logistics sector unique and unlike any other industry.

When you plan to implement an ERP solution for your freight forwarding business the foremost task is to evaluate the merits of potential ERP vendors and select the one that best meets your business needs.

The logistics industry is changing at a very fast pace, and the COVID 19 situation has shown the importance of a Cloud ERP Software that is accessible from anywhere, anytime with any device. There are a few common factors that a logistics player should consider before investing in any ERP solutions.

A Secured and Centralized Database

A secured and centralized database allows accessibility of data across all platforms and locations with authorized accessibility.  Choosing the right ERP allows single entry of data to be accessed by different departments to avoid duplication s of data entry thus saves operational time and costs.

While adopting an ERP,  freight forwarder should consider that the cloud-based systems provide a robust and secured data transfer along with the In-built capabilities that help track activities with intelligent reporting tools and business insights like tracking of shipment-wise payment, profitability, outstanding details, and performances to make critical business decisions within seconds. 

 

An integrated Platform

  

The business model of a typical forwarder is highly dependent on its relationships with other forwarders, shippers, suppliers, and shipping lines and agents around the world.

The above realization by the freight forwarders across the countries has given the push to adopt cloud-based technology that not only allows the ease of working from any location but allows to manage the workflow, enable the management to monitor, control the business from anywhere on any device with internet connectivity. Thus it is very important to consider a single integrated cloud platform while selecting an ERP for freight forwarding that allows to control and manage an Air Freight, Sea Freight, Land Freight, Warehouse, Transport, Customs, and integrate them seamlessly with CRM, Billing, & Financial Accounting.

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Accessibility across mobile and web- based platforms

The business challenges today are such that it requires immediate attention. Choosing an ERP system for the freight forwarding industry enables you to operate and access data and status of a shipment, automated follow-ups, manage sales, smooth data exchange, maker-checker, and approval system for the management, auto alerts and notification on Mobile Applications.

Visibility and Monitoring across Platforms
   
For logistics and freight forwarding companies where diverse and complex activities are performed simultaneously, visibility and monitoring are critical for carrying the operations. And during the COVID 19 locked down situation, it has become indispensable. While choosing an ERP solution makes sure that it allows the Employee Performance mechanism that gives full visibility of the entire workforce in real-time to help you and your managers to monitor every team remotely. Also, the field staff can update information from the spot and provide real-time visibility to the managers and other concerned employees to help in their decision making, planning, and strategy. 

Complete Financial Control

While choosing an ERP, it is important to consider if the freight forwarding software is capable of providing complete visibility on the finances to view your data, access bank accounts, check billing-invoices-receivables-outstanding, sales from a single-window from anywhere anytime just with a browser, and internet connectivity. The cloud-based financial systems provide every access point to completely monitor your finances including complete shipment expense management with the authorized payment process, generation of digitally signed Tax Invoice / Credit Note / Debit Note with payment link for customers, Auto Bank reconciliation, Seamless single click GST / TDS Returns management, Auto despatch of Outstanding reports and Statement of Accounts, etc to your customers.  Also, make sure the ERP solution allows checking the Receivable Ageing Report daily to determine the payment cycle of your customers, control your expenses tightly both Direct and Indirect, Send Correct Invoices in time, and ensure regular follow up for payment, Check profitability of every job, Enforce credit limit for every customer and monitor Cash Flow daily.

Customer

As a logistics company, you have to be much focused on customer service because sustaining high levels of customer satisfaction is extremely essential in today’s competitive market conditions.  Moreover, the post-pandemic era is about to see a digital transformation and customer experience will largely be driven by technology. With the customers becoming more demanding and competitive eating into your profit margins you need to be agile and remain alert in your business operations with built-in functionality like a warning system in the form of alerts and notifications.  An ERP for logistics facilitates a high level of collaboration and coordination within the organization and across stakeholders with comprehensive customer service capabilities. The application must facilitate online access to reports and information in real-time that can help customers in informed decision making. 

By choosing the right ERP you can have a very positive impact on your business to make it more productive and profitable.