Guide to Setup World-Class Logistics Processes

Logistics incorporates the integration of several aspects such as material handling, transportation, warehousing, inventory, documentation and information exchange. To establish world-class processes logisticians have to envisage a Structured Approach towards setting up processes. Building an infrastructure that supports the smooth interaction among complex logistics activities is work half done. To attain the goal of setting up smooth functioning processes, logistics companies must harness the power of information technology. Freight and logistics companies have successfully utilized technology to improve productivity, improve customer service and profitability.

From documentation to customer satisfaction, every aspect of freight forwarding and logistics now revolves around various logistics technologies. End-to-End freight forwarding software helps logistics companies in their strategic as well as day to day operations. Let us see how technology empowers logisticians to set up top-notch logistics processes -

1) Process Automation -

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. Automation of logistics processes can only be achieved by using a centralized software application such as a logistics ERP which enables integration & flexibility, faster information access and response, reduction in costly errors, better control over processes & improved customer service.

2) Visibility and Customer Service Portals -

Customers are generally worried about the status of their cargo and most of the customer queries received at any logistics company are for the inquiry of the cargo status. Visibility portal created using freight and logistics software can provide real-time information of cargo status to the customers. Interactive and automated visibility portal reduces most of the load from customer service departments and yet helps customers with exactly what they want and when they want it. Another advantage of such portals is that the employees are now less burdened with queries from customers about their cargo status.

3) Power of Informed Decisions -

The Freight Forwarding industry is an excellent example of how information reporting can change the way companies do business. In this industry, the use of information based decision making is of high importance due to interdependency of processes and involvement of multiple parties. An ERP solution accumulates a variety of data on a daily basis. Using this data to mine required information with help of a reporting module has helped numerous logistics companies improve decision making in many ways such as effective usage of available information, decision making based on real-time & historical information, performance measurement, customer intelligence & identification of areas for cost cutting.

4) Re-designing of Processes -

Another important step is evaluation and re-designing of the existing processes. Improving the existing processes allows freight forwarders to remove the bottlenecks and obstacles that cause delay and higher costs. Re-designing of different processes helps to meet the strategic and service level objectives, and closes the gaps identified in evaluation. With brief, but focused, internal process evaluation, logistics companies can identify opportunities for:

- New processes to be established

- Functional requirements to perform the existing process

- Ways to utilize new technology to improve performance and reduce costs

- Key performance indicators to measure the process

Uniform, fully redundant information technology systems, including robust, Web-based interfaces help to develop precision, speed and agility are the key touchstones for any logistics service provider. Freight and logistics software becomes the bridge between people and processes to streamline the operations and create really world-class logistics processes.