Lack of integration is holding back freight forwarders and logistics companies

In a logistics company, every process interacts with other processes within the organization and with external entities such as vendors, customers, carriers etc. When such interdependent activities are interlaced together coordinated efforts are needed to succeed. Logistics companies and freight forwarders today are being held back due to lack of integration of processes which results in uncoordinated efforts. Integration is the key to take care of vital business functions by streamlining operational and accounting processes and the lack of integration can create chaos for a growing business. Effective integration of logistics processes can only be achieved by using a centralized software application such as an ERP for logistics management. Let us see how lack of integration can be disastrous and how we can overcome this challenge.

a) Lack of Centralised Application –

Within a single organization, rigid and disparate systems lead to problems in functional integration. To work with integrity becomes a challenge due to multiple applications/systems with different partners of the supply chain. Lack of centralised system for logistics function that integrates with other functions affects the entire supply chain and execution of the shipment cycle. On the other hand using central Logistics Management Software to integrate the operations can work wonders. Such system can become a backbone to coordinated efforts, improved service quality, increased productivity and reduced costs.

b) Integration & Productivity –

Productivity is directly correlated to integration and when processes are neatly integrated, productivity increases. A single freight job ideally goes through multiple stages & departments before finalization. The captured information at every stage is majorly repetitive only with little addition. Verification and processing of this information, when using disparate systems, becomes more time consuming and prone to errors which results in reduced productivity by increasing time and efforts spent on every job. Process Integration with help of freight forwarding software ensures that single version of data is maintained across the organization and increases productivity by saving time spent on every document.

c) Decision Making –

Logistics encompasses both strategic level decisions, such as customer service levels and network design etc. along with operational decisions. Important decisions taken just on basis of judgment can affect the business badly if they go wrong. When all the processes are integrated through a Logistics ERP Software, the centralized data can be used to create a strong information reporting platform that facilitates faster and better decision making. With information reporting, logistics companies can track various KPIs across the system. Also, integration helps to improve all these key indicators and in turn overall effectiveness of operations.

d) Flexibility –

For logistics companies with widely spread operations, integration of branch offices, customers, vendors, carriers, & service providers into one single platform is very important. Integration increases the flexibility of logistics processes that lead to improved performance. Higher flexibility enables organizations to modify and enhance their operational processes as their business requires change. Using an Effective Logistics Management with ERP Systems with modular approach can help in increasing flexibility through integration.

e) Movement of information –

Logistics is becoming highly system & information oriented every day. It is not enough to move product and materials. You must know where they are. You must know which inventories are where and whether critical action is required. You must know what orders are coming in and when they must be delivered. Information — timely and accurate — must be available to all the relevant users. Integration allows flawless movement of information across the organization and beyond.

To achieve a seamless integration, logistics companies must take advantage of Logistics ERP Software to centralize their business functions. A software for logistics management helps in integration of logistics processes to increase the control on individual business function, which leads to reduced cost, effective service optimization, and increased profits. It also enables in strengthening the coordination between customers and service providers who are involved in logistical procedures. Integration is considered to be at the core of logistics management providing cost effective and customer-oriented solutions while lack of of the same limits the growth and can create nuisance in operation.

For more info on an integrated  Logistics Software go to www.softlinkglobal.com