Choosing an ERP System for Freight Forwarding and Logistics Business

The intricate nature of the transport and logistics industry combined with the fierce competition that exists in this industry brings unique challenges to the little and medium-sized operators.

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This makes it critical that freight forwarding firms, non-vessel operating common carriers (NVOCCs), custom house agents, international freight brokers, shipping agents and freight agents streamline their multifarious company operations to remain competitive. Whilst an ERP frame can go a long way in assisting you to incorporate diverse business and operational purposes, deciding on an ideal freight forwarding software that allows you to handle, access, and share data coming from and going into various sections isn’t straightforward. Prior to planning and deploying an ERP system, it is important that companies analyse their potential keeping the following points in mind:Integration of operational and accounting components within a single stage The most significant aspect to consider is the amount of integration that your ERP allows. As an example, a small and medium-sized freight forwarding agent who uses distinct software to handle functions, including cargo management, customs brokerage, documentation, container tracking, shipment tracking and compliance services would benefit more if all the applications are integrated into one master program predicated on Tally ERP 9 platform. This customised Tally alternative makes the operation more efficient, economical and provides the owner with real-time visibility of in-bound/out-bound imports as well as their corresponding payables/receivables.Avoiding duplication due to centralization of multi-branch activities The second parameter to consider is to what extent the ERP system allows the centralization of key multi-branch tasks. Contemplate each branch of a multi-location shipping agency working with another small business accounting application. This will result in disconnected pools of information separate to each other causing unnecessary delay, disruption and information re-keying whereas the company owner needs real-time operations and business data observation. On the other hand, if the same agency makes the decision to associate with a Tally services supplier and employ a centralized software application, it has a higher predictability of its operations. Because this situation makes it possible for the master application to read, write and edit data to and fro from each of the branch offices, it assists business owners track shipment-wise payment, performance, profitability and outstanding particulars.Enhanced financial control and Increased visibilityThe ERP system that you choose to implement should provide a greater monetary control by cross-integrating data from operational tasks and data from real transactions. The system should permit the owner to figure out the expected profit per shipment and compare it to the shipment’s actual price and gain (using the data from transactions, receivables, payables and broker expenses). This also assists the owner to monitor each job’s profitability which then will enable them to concentrate on prospective shipments/jobs that have a greater profitability ratio.Quick information access, report creation, and data archivingInformation coverage, data archiving and data storage are all important aspects of the logistics and transport enterprise. The ERP system ought to have the ability to generate and archive reports, including balance sheets, shipping-related MIS reports, packaging lists, purchase orders and numerous invoices for different chain spouses and quotes. This helps business owners not only to recover but send these documents directly from the system to the logistical chain partners

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