Logistics Software

Logistics software, or logistics management software is a tool that automates different logistical functions. The software helps businesses to automate processes such as warehousing, shipping, transportation management, and so on. In short, the software enables seamless flow of goods from storage to shipping between the supplier and the customer.

Logistics software has become sophisticated enough with enhanced functionality to deal with a plethora of processes and operations. It shares similarities with supply chain management software, which has a set of features to help deal with processes, transactions, and suppliers. The functionality of a logistics software extends to areas such as sales and distribution, suppliers management, inventory management, processing purchase orders, and processing customer requests. A logistics management solution eliminates all the age-old approaches like spreadsheets and paperwork to ease the management.

Whether you are looking for a logistics software for small business or big, the below features are crucial aspects to watch out for:

• Order Management: Order and billing management is always of utmost importance for operation managers. It is always preferred to have a unified order and billing management abilities and the more flexible it is will guarantee that the logistics software is capable of meeting all unique business requirements.
• Warehouse Management: Stock management is an essential part of logistics solutions. Warehouse management feature allows companies to optimize its stock that will allow an increase in overall efficiency and accuracy ensuring requirements are met in a cost-effective and timely manner.
• Inventory Tracking: Having a built-in inventory tracking ability can make a logistics management software more dependable. Since logistics comprises different kinds of transactions, an inventory control feature enables easy processing while ensuring that the customer gets the invoice on time.
• Compatible Multi-Client Architecture: Global logistics solutions that come with multi-client architecture support is required if a business manages multiple clients. Software with purchase orders and inventory have more emphasis since the process deals with multiple customers at the same time or in different phases.
• Customizable and Streamlined Interface: A good logistics software must have a streamlined interface that allows easy navigation across its major functions. Customizable logistics software solutions can easily accommodate the unique methods and infrastructure implemented by a company.
• Forecasting: The capability of forecasting is an essential feature in a logistics management software since it can bridge gaps in supply and demand by improving the business processes. Supply, demand, and price forecasting can improve customer satisfaction, assist logistics management with proper scheduling of production, and minimize stocking out of inventory.
• Analytics: Data forms a major part of any company and allows to evaluate processes and analyze performances. Analytical features offer logistics operations to capitalize on current data and make the required adjustments to optimize operations.
• Real-Time Visibility: Technological advancements and growth in the use of Internet has given the ability to stay connected all times. Connectivity and the capability to keep track of the cargo movements is most important in the logistics industry. Hence, a comprehensive end-to-end visibility is the most important feature that a logistics management software must have.
• eCommerce Integration: eCommerce is certainly the way ahead. And with eCommerce growing manifold, it appears very essential that your logistics solutions offer all the essential tools to integrate eCommerce into its platform.
• Finance Integration: Having features that integrate the financial end of the company is another major requirement in logistics software. Important financial aspects such as account payables, accounts receivables, and general ledger when included in a logistics software can help to manage the records of transactions conveniently.
• CRM: Any logistics software for small business must also cover the customer’s side. CRM-integrated logistics solutions allow the customers to know their deliveries’ status. For both outbound and inbound logistics, CRM can answer the questions of the customer and give them relevant answers along with adjustments to the delivery.

Logistics management software can be divided into 5 major categories namely procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics. Let us have a detailed look at each category:

1. Procurement Logistics Management Software: This software is used to manage the flow of goods when the raw materials and parts required for manufacturing are procured from suppliers. This logistics software for small business has gained much attention lately since small-batch production of a variety of models has become popular in recent times. In addition to this, many companies are actively using procurement logistics management software to procure the required materials at the required time in only required amounts, thereby helping to reduce inventory costs.
2. Production Logistics Management Software: Production logistics software is used for the management of procured materials and parts, distribution within a factory, packaging, product management, and shipping to warehouse. Using this software, warehouse dispatch management, delivery management, and shipping management can be optimized.
3. Sales Logistics Management Solution: Earlier, logistics mainly involved delivery from logistics warehouses and delivery centers to distribution points (retailers and wholesalers). As times have changed, direct delivery has grabbed a huge piece of delivery pie due to e-commerce and online shopping. Whether delivery through logistics warehouses and delivery centers or direct delivery from production sites, higher efficiency in delivery and transportation are essential for delivering the necessary goods to the customers in timely manner. Sales logistics software is used to manage all such factors related to sales in any logistical process, thereby contributing to improve customer satisfaction.
4. Recovery Logistics Management Software: Recovery logistics software is used to manage the process that recycles and recovers containers, products, and packaging that have fulfilled their role.
5. Recycling Logistics Management Software: These software solutions are used to manage the recycling and recovery of plastic bottles, empty cans, and old paper. The importance of recycling logistics software has been increasing in recent times as measures for the environment and to utilize materials effectively.

While logistics solutions offer a range of benefits, there are some issues that are faced by issues while using them. Here are some common issues that are faced while using logistics software solutions:

• Integration: Since logistics management is a huge concept, the integration of the software is not as easy as it may appear. A lot of modules are involved in the logistics management serving its purpose. Therefore, integration of all such modules is a bit difficult and is time-consuming. The integration also needs skilled labor.
• Cost: Application maintenance, personalization, and enhancements to the logistics software are costly and have long development cycles. Therefore, the cost factor is one of the most visible problems that organizations face while using logistics software solutions. Besides this, most of the solutions get frequent updates, which comes with a huge price tag. This also results in hefty investment by the companies in these software solutions.
• Compatibility: While using global logistics solutions, users neglect the fact that the tool must be compatible with the system. Logistics software normally is huge in size and need a strong system to manage them. Negotiating here might result in software failure or loss of data. Therefore, compatibility with the system where the software will be installed must be checked beforehand.
• Skilled Labor: A skilled labor force is also needed to navigate and operate the logistics software apart from other factors. It is a bit tricky to find resources who are good at logistics management software
• Identifying Required Features: With so many options, it can be difficult to initially identify which features are required to suffice your business needs. Does the software need to integrate different modules? Will your clients require access to your software as well? When selecting logistics solution, it is necessary to consider all these things.

As user demand continues to rise at a steady pace, so do user expectations. Hence, businesses must increase their effort to meet both the user expectations and user demands. Failure to do so can lead to user dissatisfaction and even business failure as well. Luckily, logistics software offers different advantages to help businesses in keeping such promises and achieving more than they thought they could. Here are a few benefits of using logistics management software:

• Seamless Transportation: A major aspect of your logistics strategy is transportation. Goods need to be delivered to the warehouse as well as to end-users in a seamless and efficient way. Otherwise, your order will not be on time and your rate of order fulfillment will decrease drastically. An efficient transport management feature is a part of an ideal logistics management software. The feature will allow you to monitor the status of your drivers and vehicles, avoid traffic jams, pick the best routes, and ensure your goods reach end users on time. This is not just important for ensuring a good fulfillment rate for your company but also for guaranteeing customer satisfaction. Tracking where your goods are is essential for enhancing not just your logistics strategy but also your complete supply chain.
• Increased Order Fulfillment: Every eCommerce or retail business owner knows that the more orders you successfully process, the more profitable your business will be. On the other hand, the order fulfillment rate can become a bit of a trouble if your logistics strategy fails. The logistics strategy does not just include how well you manage your inventory or warehouses. It also comprises how well your relationship with manufacturers and suppliers is. If a manufacturer or supplier is delayed due to some or the other reasons, your entire process will fall behind. Logistics management software can guarantee that the entire supply chain process is seamless. The software can encompass everything from payment processing to having substitute vendors on standby. Simply put, with the correct logistics software solutions, your supply chain will not have to fall behind and you can get an elevated order fulfillment rate for your company.
• Reduces Costs: As mentioned earlier, many eCommerce and retail businesses offer unique deals and discounts to customers, in order to stay competitive, as well as guarantee customer satisfaction. Offers such as same-day and next-day deliveries along with free shipping can strain your budget. With a proper logistics software solution, you can greatly lessen the overall expenses associated with your logistics strategy that will make providing unique deals to customers possible, in the first place. For example, when you manage to lower the expenses in the supply chain, such as order processing, inventory management costs, transportation costs, and many others, your company becomes more profitable automatically. In addition to this, increased revenue and profits means you will have more money to invest in other strategies, such as improving customer service, experience, and support. Maybe you can even invest in increasing your business further as well. In any case, catering to user needs is one of the certain ways to attain a competitive advantage in a crowded market.
• Improves Inventory Management: One of the most essential aspects of your logistics is how you manage your inventory. When goods enter your warehouse, they have to be properly labeled, stored, packaged, and processed so that the whole management process can be seamless. In addition to this, you must know the status of your inventory so that you can refill it on time. Most times, the common problems with inventory management comes from a simple human error. One misplaced product can result in even more issues for your company. Logistics solutions can help you automate most of the tasks and lower the chances of human errors. Besides ensuring that inventory management and order processing is efficient and fast, logistics software can also guarantee that your inventory is always full and ready to meet increasing user demands. In simple words, you will be able to avoid delays, mistakes, and other problems that may hamper your logistics plan in any way.

Rising technology advancements are making big waves across industries, and logistics might be one of the most affected industries. Notorious for large amounts of data stored in different ways and in different places as well as for its heavy use of manual processes, the logistics sector has perhaps the most to gain with upcoming and the latest technologies. Here are some upcoming trends that are seen emerging in the logistics sector:

• Artificial Intelligence: Over the last few years, the logistics sector has begun to integrate AI solutions including route planning, intelligent transportation, and demand planning in their processes. But this is only the beginning. From sustainability solutions and last-mile delivery robots, to predictive optimization software and warehouse automated picking systems, AI is already making a huge difference in logistics. Carriers, shippers, consumers, and suppliers can all expect to advantage from these logistics technology trends.
• Augmented Intelligence: Augmented Intelligence is also predicted to spike in use. Augmented intelligence involves human intelligence together with AI automated processes. For instance, using Augmented Intelligence in logistics planning can even be superior to using AI alone. This is because Augmented Intelligence can combine inputs from human planners (responsibility, experience, flexibility, customer service, and common sense, among others) along with AI technology which is left doing the tedious and repetitive work. As per a recent study, augmented intelligence lead to an increase of 6.2 billion hours of worker productivity and will generate $2.9 trillion of business value all over the world. Logistics organizations can be predicted to implement more Augmented Intelligence solutions, which eventually allow logistics professionals to do their job more swiftly while creating cost-savings and reducing mistakes.
• Blockchain: Blockchain has evolved to become one of the biggest and overhyped logistics technology trends. On the other hand, the complicated concept of the blockchain has been tricky to grasp for the general public, and in spite of its solid potential for incredible use cases (both in and outside of the logistics), there has been an overall lack of actual development. This shows the strong potential of being used and leveraged in the industry. But there are still a few steps needed for logistics firms to adopt the blockchain completely. First, logistics organizations need to standardize, digitize, and cleanse their data. Next, once an industry-wide standard is set up, organizations must form an environment of supply chain vendors to use the standard in a permission-less, shared blockchain ecosystem.
• Wearable Devices: Wearable technology are the devices developed to be worn by people. Combined with cloud technology, these devices help employees to input and access data in real time. Via proper data analysis and collection, wearable technology allows organizations to control their inventories. They can also stay updated with product demand. Logistics managers can use wearables for accurate, fast collection of inventory data as well as for keeping track of stored, manufactured, and distributed products. Wearables can also keep track of vital signs so health problems (heart attacks, exhaustion) amongst the warehouse employees can be prevented.
• Autonomous Vehicles: Companies are beginning to see the potential of autonomous vehicles even in unexpected regions, such as fleet maintenance. As more drones are being considered for small package delivery purposes, it would not be shocking to see more pilot projects approvals and trial runs in the years to come.
• Warehouse Robotics: It is without a doubt that warehouse operations have undergone a noteworthy shift in recent times. And with technology being integrated progressively, this is one of the logistics technological trends that is expected to rise continuously. One of the obvious and fast-growing innovations is warehouse robotics. As per the Global Customer Report 2019, there has been an 18% rise in testing of warehouse robotics. Whether it is driverless vehicles, wearable technology, or multifunctional robots, robotization can significantly enhance the speed and efficiency of warehouse processes. In addition to this, with machine-learning sensors and technologies ensuring easy traceability and extreme accuracy, the modern warehouse will start seeing the integration of many more autonomous robots in the years to come.

The price of any logistics management software depends upon the modules and features it offers. Hence, mentioning the cost of logistics solutions would be a difficult job. On the other hand, with the right modules and features, any best logistics software might cost you almost $1000 on a monthly or annual basis. Moreover, additional advanced features and the cost of the software are directly proportionally to each other. Apart from periodic transactions, companies can also pay a one-time license fee for the solution. This type of payment is usually associated with on premise software.

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