The Most Popular IT Solutions to Streamline Logistics Processes

Currently, supply chain organizations are experiencing various challenges. The need for logistics services is continuously increasing, consumers expect service of better quality, and rivalries are getting fiercer and fiercer. Why is this happening? The main reason is massive digitalization and the need for developing and following the digital transformation strategy.

Adopting the latest supply chain and logistics technology raises the bar. Using new technologies lets supply chain players transport cargo faster, manage shipments more effectively, and satisfy growing consumer expectations. The following statistics show that the demand for logistics software solutions is only going to grow.

The worldwide digital supply chain market size is predicted to reach $22,170 million by 2028, from $10,230 million in 2021, at a CAGR of 11.5 percent from 2022 to 2028.

Let’s view the most common and well-proven types of logistics IT solutions. If implemented wisely, these software products will enable you to reach new business heights.

What software solutions help to streamline logistics processes

Supply chain IT solutions allow for the integration of information, cargo delivery, inventory, storage, material handling, and batching. Logistics software is tailored to enable users to perform and manage their supply chain operations. Here are some of the most common logistics IT solutions:

1. Transportation management system (TMS)

A TMS is a type of IT solution that enables logistics companies to plan and perform the movement of goods. All players involved in last mile logistics processes can use a TMS (e.g., manufacturers, distributors, 3PLs).

The proper TMS should streamline shipping, enable businesses to make informed decisions, and save time and money. In order to choose or develop an effective TMS, you should be aware of the functionality that will enable your company to grow. These features include real-time tracking, route optimization, contract management, invoice management, and so on.

Some advantages of using a TMS:

Decreased shipping costs. This system can help to save on costs and provide optimization thanks to detailed analytics. A TMS suggests ways to decrease expenses and analyzes data to provide helpful information.

Real-time shipments monitoring. The system enables you to see where drivers and deliveries are in real-time. Thereby, you can analyze how long a route takes and create an adequate route schedule. In addition, you can identify inefficient drivers and routes and make corresponding improvements.

Improved client service. This software can include a digital portal tailored to your customer logistics needs. Your clients can track their cargo in real-time and update their customers. A customer portal, which we describe further in the post, ensures better client service as end customers can view shipment details at any time.

Enhanced storage efficiency. As a warehouse faces a steady stream of incoming and outgoing inventory, it’s vital to ensure that this process is uninterrupted. Integrating a TMS with a warehouse management system might ensure a record of orders and enable your staff to locate them in the storage facility and in transit.

2. Warehouse management system (WMS)

A WMS is a mix of software and processes that help companies to monitor and manage warehouse operations right from the moment inventory arrives at a storage facility until it’s dispatched. A WMS aims at ensuring that inventory passes through storage facilities optimally and cost-effectively. To ensure this, a WMS should have such features as inventory receiving and tracking, order allocation, picking, put-away, and creating shipping documents and labels.

But other critical features of this software system depend on the volume of the operation and inventory complexity. For instance, a solution for frozen foodstuffs would differ from electronics.

Some advantages of using a WMS:

Reduced space and operating expenses. WMSs improve warehouse processes by identifying the optimal use of floor space depending on the objective and inventory characteristics. A WMS helps to define the best way of using warehouse space and enables you to decrease the waste of premium floor space and time for determining the inventory location. It will also reduce potential costs associated with excessive material handling, long placement, and retrieval. Thanks to identifying the optimal place to store inventory and equipment, a storage facility is able to reduce its operating expenses.

Effective inventory tracking. A WMS is required to allow for tracking correct inventory volumes in real-time. Thereby, an organization can assess supply and prevent backorders for better customer satisfaction. The data that a WMS requires to track the flow and location of inventory is transferred via RFID readers, barcode scanners, remote terminals, etc. Such inventory visibility helps to avoid situations when goods or materials become forgotten or invisible within a storage facility.

Improved quality of work. An effective WMS takes into account employees’ proficiency, location in the storage facility, the equipment they use, and the current tasks to do. Based on this data, a WMS can effectively assign tasks to the most appropriate workers at the right time. The feature of labor forecasting allows a WMS to assign tasks and create schedules.

3. Enterprise resource planning (ERP) system

Logistics companies use ERP systems to manage such operations as accounting, compliance, procurement, risk management, etc.

Some advantages of using an ERP:

Organizations utilizing this type of IT solution inform that it brings them such advantages as enhanced warehouse management, higher client service, and more precise demand forecasting. Let’s focus on a few benefits ERP systems provide:

Centralized view of data. The main and probably the most essential, advantage of an ERP system is providing a centralized view of valuable financial, business, and operational information. It can be distributed across the company in almost real-time. This capability of the system allows for achieving business intelligence. Gained information can be filed as reports an organization can utilize to re-allocate resources or seize available industry opportunities.

Reduced manual and repeatable tasks. The system enables you to automate repeatable operations including invoicing, payroll, processing of orders, etc. Thereby, the amount of manual data entry manipulations and human errors is decreased. As a result, workers can concentrate on more complex and non-standard tasks.

Advanced accounting capabilities. An ERP system provides functionality that enables a company to monitor, store, and sort out such financial information as accounts receivable, general ledger, and accounts payable. Some ERP software can even perform tax management and multi-currency reconciliation.

4. Customer portal

A logistics customer service portal is typically a web platform that enables customers to view and manage their orders. In the supply chain, this information includes not just shipment statuses. This software solution provides easy 24/7 access to such data as payments, details about orders and delivery, and invoices.

Some advantages of implementing a customer portal:

A digital portal increases your customers’ satisfaction as they can:

• Get real-time updates regarding their shipment at any time. Using GPS helps users identify the shipment location.
• Receive notifications that inform them that their load has been picked up and delivered.
• Access their documents online. These include the bill of lading and proof of delivery.

Conclusion

To expand your business and reach new heights, it’s already isn’t enough to have warehouses and a transport fleet. Your organization also needs to optimize its operations, enhance its warehouse and transportation processes, and improve the quality of service. Adopting or developing appropriate software systems and using logistics information technology will help you break new ground.

Victor Booth

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