Technology has positively impacted every known business. Then, how can the business of logistics get left behind? Logistics as an enterprise is a complex undertaking and requires high levels of accuracy and efficiency to ensure your customers remain happy and satisfied.

With increased improvements in technology, customers have become more aware, assertive, and vocal about their demands and will not take anything lesser than the best. In such a scenario, it becomes imperative and prudent that logistics service providers adopt technology that brings in seamless efficiency coupled with precision, offering unmatched value to their customers.

Logistics and freight forwarding software are two technological components that are integral to the smooth running of operations in the logistics industry. This article sheds light on the significant benefits so that more companies in the logistics domain are compelled to adopt these technologies to improve their business and growth prospects.

Benefits of Logistics Software

ensures the streamlining of logistics operations. Some of its advantages include:

• Gain Greater Control & Efficiency: One of the foremost things you will notice after the implementation of logistics software is a greater level of control over your business operations compared to before. The software will enable your business to manage the delivery of goods both effectively and efficiently.
•  Reduces Error Rates: After installation of the software, all the information pertaining to the transport of goods can be managed, tracked, and updated with higher levels of accuracy by all team members involved in the business operation. Moreover,  the software is even capable of tracking the movement of delivery vehicles.
•  Enhances Freight Management: No longer will your operations team remain involved in the comparison of different quotations from transport companies.  The software will ideally replace the manual way of doing things. The software would provide the best rates on shipments based on an automated mechanism for price comparisons.
•  Improves Profitability: Utilising the software is the best option for both upcoming and established logistics companies. The use of the software would reduce the need to hire many professionals in-house, thereby saving on costs associated with salaries, etc. Moreover, the user-friendly interface of the software would improve productivity as anyone would be capable of using it.  

Benefits of Freight Forwarding Software

It has become a common occurrence for forwarders to use freight forwarding software for managing their production, inventory, and shipments instead of hiring third-party service providers. Here are some of the benefits: 

• Affordable: Installing freight forwarding software works out cheaper compared to hiring third-party service providers. The overall cost of the software is directly dependent on your business requirements. You would only be paying for services you consider necessary instead of buying the entire software suite.
•  Puts You in Control: One of the main complaints of businesses using third-party service providers for cargo management is that they feel distanced from the entire shipping process and its management. Freight forwarding software gets you closer to the shipping process through real-time updates, allowing you to manage better your operations.
•  Secure Shipping: With the software putting you in control of the shipping operation means you can closely monitor the entire process up close. This directly eliminates the need for you to remain at the mercy of third-party service providers who often select carriers based on their own interests, which has the potential chance of jeopardizing the customer’s interest.
• In-Depth Analytics: Being a logistics manager comes with the responsibility of making a lot of decisions throughout the day. This software provides you with digestible and real-time analytics giving you clarity on various aspects of the business operation. It generates actionable insights for improving your processes and practices. This will allow you to carry out effective decision-making. 

Conclusion
One of the primary challenges of any business is to add value for their customers. Today, technology is allowing this value addition through automation and digitization with the efficient streamlining of business processes. Thus, businesses that take advantage of the available software are bound to reap the benefits quite early allowing them to have a competitive edge over their competitors.

Frequently Asked Questions (FAQs)

Q. Is logistics and freight forwarding software applicable to small businesses or only large enterprises?

Regardless of the business’ size, adoption of software in a logistics business is beneficial to a business both in the short and long term. The business becomes less dependent on direct human intervention, which results in cost reduction.

Q. Is the use of logistics and freight forwarding software easy for a non-technical person?

Answer: Most of the software in the market comes with an easy, intuitive interface that is extremely user-friendly. Certain softwares provide a guiding mechanism on how to proceed with particular tasks. Overall, the software is created with a non-technical person in mind. 

Q. Is implementing logistics and freight forwarding software an expensive proposition?

Answer: One of the best things about the implementation of logistics and freight forwarding software is that you can customize the software. Thus, you can purchase only those tools and features which apply to your business (size, scale, etc.) instead of buying the entire software suite. Based on the demand and growth, you can pay incrementally to enhance the features and scope of the software. 

Selvaraj Thangavel

Chief Technology Officer
Newage Software & Solutions

The world has ceased being how it was before COVID-19. Today, dramatic changes are experienced in almost all industries and modes of operations globally, and the freight forwarding industry is no exception. The industry has always been associated with complex and challenging operations so the strong revival in the present times requires extensive digitalization and focus on the right technology and solutions. 

Enterprise Resource Planning

ERP Software is an integrated system that helps achieve a seamless operation of a business’s major functions. It can be customized as per industry and business needs. However, choosing the right ERP software can be challenging due to a wide variety of options available. For an inherently complex industry like freight forwarding, this is of even more challenge as the aspects of system integration, configuration, features, regulation often add to the complexity of selecting the right fit solution.

Smart Tips for making an informed choice

Choose a cohesive system that provides:

1. End-to-end Integration

The very first aspect that business leaders must consider is whether the solution is integrated and meets the specific requirements of freight forwarding. The chosen solution must effectively manage all the aspects of operations as in import and export, consolidation, forwarding, trans-shipment, and others for various freight activities. Apart from providing the core functions, the ERP must integrate with the broader ecosystem connecting with Shipping Lines, Customs, Agents, Airlines etc.

2. Greater Visibility and Financial Controls

The system must allow the owners and the agents with financial statistics to help make the right business decisions at the right time. The system must ensure data integrity through the workflow, enable fast month-end closures, and track the profitability of every aspect of shipment.

3. Scalability

Prefer an ERP that is scalable and can be upgraded to support the increasing complexities and size as the business grows, to remove the redundant cost and provide economies of scale. This will fulfill one key goal of increased profit.

4.Configurability for your business
Choose a system that is configurable to suit your business needs without requiring modifications to the core software. The ERP should allow to create multiple hierarchies, departments and branches and help you connect to the logistics network without the need for a change request to the software.

5.Customer Support and Service Availability

Look for service provider’s track record in offering good customer support and service availability for users. You should be able to get product support and management attention when you experience technical glitches to get your business back on track quickly. The Service provider must also use an intelligent ticketing system and provide good technical and product enablement.

Other Useful Tips:

1. Industry Expertise

Partner with a vendor that understands how your business works and has the ability to cater to your needs.  It can be a big advantage as you can leverage industry best practices built into the ERP system.

2. Solution should be secure

Evaluate a system that provides multi-branch access to a highly secured and centralized database. Ensuring this would help avoid dealing with disjointed data groups that might cause disruption and delay, and even data duplication. It will help to maintain, work, edit data between all business units / branches and aid the owners in real-time tracking of profitability, payment, performance, and other details.

3. Strong document management and an efficient recording system

ERP solutions have comprehensive reporting, which are essential in the freight forwarding industry. The chosen solution must have a module of a smart document management system that can help store, track, and keep the details of all the reports and dashboards. Automated records and documents enable freight forwarder to reduce dependencies and risks associated with papers and manpower required to maintain.

4. Quick account setup and ease of onboarding new customer
Look for an efficient system which enables quick account setup for new customers and easy workflow configuration to avoid time wastage and increased costs. The ERP software should allow your staff to handle daily operations without the need for extensive training.

In Future
It is imperative for every freight forwarding business to own technology and digitization and select an ERP System suitable to its need. The right solution would enable the company to achieve cost efficiency and maximize value generation. Implementation of an ERP solution is a big decision, but it would ensure long term success if proper due diligence is done.

Ashish Mishra

Chief Executive Officer
Newage Software & Solutions

Every successful business owner and industry leader is well aware of the pivotal role of effectively organised logistics in its operational pipeline. Seamlessly implementing logistics in your core operations allows you to keep pace with rising customer demands and outrank competitors and efficiently upscale your business when the need arises. Irrespective of the current size and scale of your business, the desire to grow and expand is going to be a perpetual one. And this expansion can be regional, national or even on an international level. Streamlining your logistics lets you accommodate all the necessary components of your expansion and cut down on all the associated costs and the time spent on inventory and product displacement while you are at it. 

By default, supply chains are susceptible and complex in nature. This is primarily because most of their developments are dictated by customers and consumers and their ever-changing demands. Without having transport that is effectively organised at their disposal, no supply chain can promise high delivery standards and premium value to their customers. Subsequently, this makes logistics among the most prime factors concerning the quality of any supply chain out there.

Supply Chain, Freight Forwarding, and Logistics: Scope of Overlap

Though effective transport appears quite simple from a distance, it actually involves a horde of skills, special knowledge, deep understanding of the chain and professional management which all work in unison to show as an effortless mechanism. By decreasing the waste of time and materials, effective transport facilitates the optimisation of resources and contributes significantly towards improving the supply chain. Apart from logistics companies, there exists yet another set of entities that also play a crucial role in streamlining the global supply chain- freight forwarding companies.

Although there are multiple points of overlap between a freight forwarding and a logistics firm, the former presents a set of notable benefits to their users, including maintaining data concerning speciality routes, transparent pricing options, and more technology-oriented tools among many others. The answer is bringing supply chain, freight forwarding, and logistics business together lie in technology as well. It is only through the vast scope of technology that one can hope to weigh out the pros and cons of each of these systems and help in formulating an integrated arrangement that improves the all-important parameters of optimisation and efficiency. 

Using IoT in Logistics:

For the last 20 years or so, the realm of the Internet of Things (IoT) has taken the world by an absolute storm. In the course of its continuous evolution, the technology has successfully managed to assert its position in the majority of households across the globe. So vast is its application’s scope that it has found relevance in all the significant sectors around us, including real estate, agriculture, and finance. Of late, it is starting to get picked up by logistics businesses and the view of reducing costs and managing risks within the sector.

Listed below are a few other benefits that the industry stands to gain from this technology:

• Facilitates the establishment of a superior supply chain intelligence which subsequently helps in tracking those shipments that ate temperature sensitive
• Allows for a better degree of fleet management by carrying out automation of all maintenance and repair activities, and accurate tracking of shipments and vehicles.
• Helps in achieving cost efficiency by optimising fuel usage management.
• Helps in the streamlining of operational pipelines by improving the parameters of warehousing and inventory tracking.

Using AI (Artificial Intelligence) and ML (Machine Learning) in Logistics:

Ranging from smartphones to weather forecasting, there’s rarely a department that hasn’t benefited from the explosive possibilities of Artificial Intelligence and Machine Learning. The logistics industry is not an exception either.

Listed below are some of the ways in which the logistics industry has incorporated Machine Learning and Artificial Intelligence to drive growth and development within their sector:

• Allows for automating various core operations within the warehouse, such as organising and identifying inventory.
• Enables the supply chain to incorporate autonomous vehicles such as drones and warehouse ground vehicles to automate various business processes.
• Helps lower costs by automating redundant tasks and enhances the overall quality of works by carrying out the automation of back-office operations.
• Helps shippers analyse trends in the supply chain, accurately predict demand, and effectively keep track of daily patterns within the lanes.

Conclusion
For a company to reap in the benefits of a sound logistics experience, all constituent components in its supply chain need to exist harmoniously. With the help of modern technological tools such as blockchain, IoT, ML, and AI; shippers should increasingly work towards striking sync between the wings of their supply chain and freight forwarding should they wish to see their logistics business scale unparalleled heights of excellence. We hope you liked this blog, explore our site to know more about the global supply chain.

Suresh M

Head of Delivery
Newage Software & Solutions

The logistics industry refers to the distribution and transportation of goods. This includes the purchase and delivery of raw materials,and packaging, shipment and storage of materials. It is an extensive network that works together to deliver products to the customers, including vendors, transportation providers, call centers, warehouse providers, etc.

Logistics have a significant impact on business. The more efficiently the raw materials is purchased, transported, and stored until use, the more profitable the business will be. It is crucial to coordinate with resources to allow for timely delivery and the apt use of materials. On the customer side, if the products are not produced and shipped in a timely manner, there could be an adverse effect on customer satisfaction,, negatively impacting a company’s profitability and long-term viability.

Challenges faced by the logistics industry

Like others, the transportation and logistics industry also faces challenges in terms of technology, new market entrants, customer expectations, and new business models. Some of the significant challenges faced by this sector are given below.

1. Fuel costs

Among the biggest challenges faced by the logistic industry is fuel cost. Higher fuel prices are likely to increase transportation costs by pushing up fuel surcharges. These escalating surcharges are added to the freight rates making it difficult for truckers whose earnings are hampered.Rising fuel prices are an immense pain for the logistics industry.

2. Process improvisation

With the emergence of new technology and processes, it is imperative for the logistics industry to adapt and stay on top. . Taking advantage of new opportunities sounds enticing, but the adoption process and onboarding can sometimes be quite overwhelming.

3. Transparent customer service

Customers demand full transparency in terms of tiered delivery. These days it is also effortless to track the location of your delivery package. Since the customer expectations have increased, their willingness to pay for fast shipping has decreased.

4. Driver shortage

Since the logistics sector has expanded in such a short duration, there is a shortage of drivers, which is a significant challenge in the industry. Candidates’ driving records are thoroughly scrutinized for traffic violations or inspection discrepancies, lest it has a negative impact on the company’s safety compliance and accountability score.

5. Government regulations

Carriers usually face significant compliance regulations imposed by federal, state, and local authorities.

6. Transportation costs

This is the single biggest challenge as transportation costs account for a large chunk of total expenses.Costs can be curtailed to some extent by consolidating shipments and getting bulk rates; however, this could be at the risk of delayed deliveries, which would negatively impact customer satisfaction.

7. Improving business process

Logistics partners are experts with relevant ,in depth experience and knowledge. They also tend to be financially stable and flexible and capable of taking reasonable risk for long-term gains. The logistics business is highly competitive; hence industry benchmarking plays a crucial role in the business process improvements.

8. Improving supply chain visibility

Logistics companies need full visibility on the supply chain process. Shipments must be tracked to make sure that they are following the prescribed route.In case of any disruption, notifications and alerts should be activated to initiate prompt actions. Customers also need to get updates ,i.e., shipping notifications, ETAs so that they can track the shipment on the web portal.

9. Impact of the economy

Political instability, a drop in the performance of the manufacturing sector, inflation,or a rise in the consumer price index can all adversely impact demand for products and services, ultimately leading to negative impact on freight demand.

10. Sustainability

There is a significant focus on reducing emissions. Logistic companies must comply by adopting route and load optimization, tracking and reporting emissions, upgrading engines, and choosing alternative fuels.

Conclusion
Given the above challenges, logistics companies can meet the rising customer expectations by being flexible and committing to upgrading technology, process, and people.

Venita Jumnani

Head Of Marketing
Newage Software & Solutions