Although the Enterprise Resource Planning (ERP) market is expected to be worth $86 billion by 2022, it hasn't been a popular choice for small and medium-sized freight forwarders. Part of the reason is the belief that ERP for logistics and freight forwarding is not affordable.
If you place costs before the benefits of ERP, you could lose out on the chance to create a unique value for your organization. The importance of ERP is realized when processes and communication start developing cracks. Globalization has been providing interaction opportunities to both Logistics Service Providers (LSP) and shippers. With the increased reach of both shippers and LSPs, both parties understand the demand for better and more efficient service.
Logistics ERP bridges the communication gaps within your teams and with your customers as well. To stand firm in the competition, the quality of your service offering must be consistent. As increasing freight rates play spoilsport for smaller LSPs that distinguish on lower prices, ERP provides a platform for varied ways to stand tall in the competition.
Single Platform and Single Storage for Close Control: Imagine ERP as taking over the reins from individual software for each function and becoming the ultimate solution. Being a cloud-based application, ERP makes data accessible to all functions from a single database across locations.
Tightly-Integrated for collaborative convenience: Due to the single-database model, all your teams have a clear view of the progress of the shipment. For instance, when a new job is confirmed by the sales team, the ERP will share automatically intimate billing, finance, and operations teams.
Power of Data and Insights: Historical and current trends can be plotted visually on a graph to spotlight the highs and lows of your business. Reports share insights about your strengths in revenues and where you must put additional effort. Job profitability report gives managers deep insights into revenue, expenses, and profit segregated in air, sea, and land transport.
Improved Productivity with Automation: Sales realization, consolidation of dues, and payables across locations and transport modes are a few of the key strengths of ERP. Such data gathering is only possible with deep integration of all functions. Automation like auto-emailing daily status reports to vendors and customers reduces manual work and paints a clear picture of your current financials.
Reduced Risk of Errors: No company wants shipment delays arising out of their actions. Thus ERP ensures a majority of the tasks have limited or no manual entries. Mishaps like the incorrect address of the consignee entered could result in the holding up of cargo at delivery. ERP like Logi-Sys comes with a second-level approval mechanism to guarantee sensitive data is double-checked before processing.
Arm your company with
the right tools
ERP comes with a bunch of useful features that can prove to be a game-changer even in the short term. The best use of an ERP is by combining it with the uniqueness of your company. To make it work, there must be a firm commitment from all ends of the organization which includes strategic, technical, and operational. The importance and benefits of implementing an ERP exceed the initial investment of cost and time. Implement a trusted freight ERP like Logi-Sys today and reap the gains almost immediately.
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