Six Benefits of Implementing a Software-Based Logistics Management Program

A logistics management program-also referred to as a transportation management program-is a comprehensive approach to managing every aspect of the logistics process while developing innovative shipping solutions that save time and money wherever possible. A logistics management program is achieved in one of three ways: hiring a team of in house logistics experts, hiring a third party logistics (3PL) provider or implementing third party logistics software.

Hiring a team of experts is usually too costly for small to midsized companies, and hiring the type of 3PL provider that would implement a comprehensive, innovative logistics management program is usually too costly as well. But implementing logistics software allows companies to develop a comprehensive, innovative management program without the aid of paid professionals. Logistics software does the work of a logistics expert, meaning that its users don’t need to possess logistics expertise. Instead, they use a user-friendly interface to choose from among recommended shipping solutions for every area of the shipping process. Below, we list six benefits that shippers experience after implementing logistics software.

Reduction of Expedited Order Costs

Expedited shipments can significantly drive up the cost of shipping if they occur on a regular basis; and without a comprehensive logistics solution, they typically do. Logistics-software allows shippers to reduce expedited shipments through better shipment planning and system directed exceptions handling, which resolves exceptions before they necessitate an expedited shipment.

Increase of Load Consolidation

Upon implementing logistics-software, shippers immediately realize the ability to consolidate parcel shipments into less than truckload (LTL) shipments, as well the ability to consolidate LTL shipments into truckload (TL) shipments, each of which significantly lessens annual shipping costs.

Automation of Carrier and Mode Selection

When companies automate the selection of the best carrier and the best shipping mode, they save money in terms of both saved time and saved manpower, especially considering that logistics software immediately pairs optimal carrier and optimal mode selection.

Identification of Invoice Discrepancies

Searching for discrepancies in invoices on your own can be tedious and time consuming. But logistics software can instantly compare the audit of a freight invoice against the shipping contract, allowing you to never pay for services that weren’t rendered as promised or that were rendered in violation of the shipping contract.

Tracking of Carrier Performance

Tracking a carrier’s performance can help you negotiate better rates. Logistics software provides information on a carrier prior to your forming a contract with them, which can allow you to receive a lower rate if, for example, a carrier’s promised delivery times average a few minutes or more less than the promised times.

Reduction of Product Breakage

Regardless of the cost effectiveness of shipping routes and load arrangements, a company doesn’t profit from an economical shipping process if its products regularly break en route. Logistics software solves this problem by connecting shippers with carriers that offer the right mixing and stacking strategies for a particular type of freight.

Streamline Shipping With Parcel Shipping Software

No matter the size of your company, if you rely on heavy shipping to make your money then you need to make sure you have the best software available. Mistakes made in shipping will not only cost you time and effort, it will also cost you customers and a lot of money. Think about major companies that handle only shipping like UPS, FedEx, and others. These companies must have the most advanced software around in order to make sure that the millions of packages they handle a year get to where they need to get to. We only hear and talk about the mistakes, lost or late packages, but think about it

For handling over a million packages, boxes, bags, envelopes and other things a year, these major shipping companies make a mistake less than one percent of the time. That is a great success rate and any company that has to ship products, advertisements, or anything else for that matter would love to have that kind of success rate as well. That is why you need to have the latest shipping software that can help you stay organized and keep your company moving forward. The reason these major companies have so much success with so many packages is because they have their special software that simplifies things for them. There is no way global businesses be able to handle the enormous volume of shipping they have to every year with such a high success rate if they did not have UPS and other parcel shipping software systems.

If you have a smaller company you may not need the exact same kind of software as some of the billion dollar companies do but you will need some shipping software none the less. It is important that you are able to keep your customers happy and make sure you run a smooth, organized, and efficient shipping program no matter what it is you are shipping. UPS shipping software is a great example of this because if anyone in the company has any confusion about a package, the software will eliminate the confusion without the need to bring the customer back in or cause any delays at all. So many companies offer products similar to other companies at prices that are also similar. What separates many of the companies is the service they can offer to their customers, people are willing to pay a little more for better service. So if you are able to get a client a product quickly, with no delay or mix ups, then you have insured that they will be a repeat customer for years to come.

Inventory Software Will Allow You To Maximize Costumer Service – Follow These Steps To For Success

The last thing any business wants to do is take on any expensive they feel they are not going to need. This is one of the primary reasons why a lot of business, especially those that are just starting or are smaller, will decide to go without an effective inventory management system that is implemented by means of inventory software.

These businesses will try to do things the hard way. The hard way equals a business having to invest more time, which of course is going to mean more money.

In order to convince you of how beneficial it would be for you business to have inventory software, we need to discuss the overall value it is going to provide you with moving forward.

The one aspect we can focus on is the lifeblood of your business, and that is going to be making sure your customers are satisfied. Now you might have a good product or products.

You might have friendly staff who answer the problems of customers. You might run a pretty efficient business. However, without inventory software you are not doing all you can to make sure you are maximizing customer service.

Why do you think this is? Well, without the right tools at your disposal to make inventory management more efficient you are going to run into problems such as inaccurate customer forecasts.

This means you are going to underestimate or overestimate the amount of software you need. How much do you believe this is going to cost you in the long run? Then you have issues such as various changes that can happen to original customer orders.

When this happens it can throw everything into a tail spin. Let’s not forget the overall lack of account management your business might have.

All of these things combined make for poor customer service performance in regards to on time delivery, not suppliers and not purchasing. What do you believe is going to happen because of this?

You are likely going to end up carrying a lot of excess inventory or not enough. This is going to lead to inventory write offs.

You are going to end up having higher product costs, which is going to mean lower profit margins for you. Inventory software is going to enable you to solve all of these problems without hassle.

There are many reasons why inventory software will help you make more profits at the end of the day. For instance, right now you probably have a good idea of how many sales you can expect to get for a given product at a given time of the year.

You might have taken the time to put this information together and it has worked out well for you. However, without inventory software there is a chance you are opening yourself up to a huge forecast error.

You want the individual product sales forecast for your business to be as accurate as possible. The more accurate the product sales forecasting is the smaller the forecast error will be.

This means you are not going to need that much inventory to make sure that you are able to maintain a specific level of costumer service. There are other benefits as well.

Your most likely use machines in your business if you carry a lot of inventory. Not carrying excess inventory means you will not have to worry about over using machines you might have when it comes to producing products.

You will not build products before they are needed, and as a result you are not going to have to commit capacity of your machines too early.

Inventory software which is another term for logistics software, is a tool no business can afford to be without if they want to run a sound inventory management program.

Warehousing Management Software And Getting This Software For Your Warehouse Operations

Any business owner that has to operate a warehouse knows that the process cannot operate efficiently if there isn’t a solid system in place. A solid system enables for every phase of the warehouse operations to be solid as possible.

So all of these warehouses are going to have a system they are using. The only issue is some of them choose not to make upgrades by means of implementing warehousing management software.

Now for smaller businesses, these types of businesses are usually put off by the high cost of having warehousing management software. A lot of them feel it is simply not a wise investment to make.

That might have been the case a long time ago, but now this type of software has been made affordable and easily accessible. Incorporating it into your warehouse management process would not be difficult at all.

Computer technology has advanced greatly over the course of the past few years. This means advanced warehousing management software is available to those who otherwise would not have had access to it before.

Smaller businesses can decide to utilize it by means of very affordable subscription plans. The amount you pay would be dependent on the features you need and or how long you plan on using the software.

Now what would this mean to the average business owner, particularly those who are smaller? This would mean the upfront cost of implementing warehousing management software would be greatly reduced.

This also means a business would not have to worry about hiring someone to help them decipher or implement the software. There will be no need to purchase additional equipment such as computer servers.

And in most cases the warehousing management software you would be utilizing would be completely hosted and maintained by means of the Internet. No need to worry about security or reliability problems either.

The software that is available these days is going to be extremely reliable and is going to be very secure. After all, you would not want to put your warehouse operations in the hands of any product you felt didn’t offer both to the highest degree.

Some of the key advantages to using warehousing management software would include the ability to reduce problems with shipping. Shipping errors cost a lot of money to correct and that can greatly impact the businesses bottom line. The software will give you the ability to greatly increase inventory visibility as well as accuracy.

Whatever carrying costs you have at the moment can be reduced as well. This is going to definitely help you in the long run, particularly in tough economic times.

Warehousing software will also allow you to increase order fulfillment capacity without having to hire additional staff. There are other benefits as well that you can learn about easily since the program can be taught in a relatively short time frame.

This type of logistics software is beneficial, because as a business is trying to grow the software will enable you to make adjustments so that you can scale it to fit your business as it grows.

Whatever requirements you have you do not have to worry about being locked into a specific way of doing things. You can customize certain things in order to meet specific requirements your warehouse operations are going to have moving forward.

Your process for warehousing management might very well be effective, and you can maintain that system. It is just that with using warehousing management software you can integrate the two so things run far more effectively.

If you intend for your business to grow you will need a way to do this no matter what. Start out now and start getting yourself acclimated to using this software for your business.