It is the vision of every business owner to have a centralized platform for sharing their data. You may be worried about data theft and fraud which is a serious threat to your business. Having a single source of data creates a sense of reliability and eliminates overlapping of information. Using freight forwarding software is the ideal choice in the present freight industry. Shifting to digital methods have decreased the chances of information leaking. Moreover, software should have the ability to connect to other applications. Incompatible software has no practical use. For smoother communication, logistics technology has been introduced to ERP. ERP facilitates smooth data exchange across various business channels. It also helps in real-time sharing of information in a unified manner. You can consider it as a central control chamber. Software tools need a bridge to connect with the ERP system. This bridge is necessary for a consistent flow of data. The ERP integration links these tools to the system.
What’s the connection between ERP and transportation of cargo?
Managing such a large amount of goods on a daily basis seems tedious. You have to observe supply chain trends, order status, invoicing and tracking at the same time. Your workers are not machines, they need time and rest to complete certain tasks. For example, transportation of cargo takes more than just finding the right transporter. But with ERP software for freight things get a lot easier. You do not have to individually contact every transporter. Furthermore, ERP also helps in a smoother supply and demand across the supply chain. This is necessary for supply chain management. ERP can help with challenges like inefficient monitoring and real-time tracking. It also raises your worth in the market. Shippers can easily contact you with a single tap on their screens. This shows that ERP and transportation go hand in hand. The system has the ability to handle multiple tasks at the same time. Need an urgent delivery? Not a problem. The ERP will quickly update the driver regarding a change in delivery time. This will help in better resource utilization and save fuel costs. It also offers advanced shipping solutions for your company. This helps in quick decision making.
What is ERP integration for freight forwarders
Why do freight forwarders need ERP integration? Well who doesn't need a smart helper who manages all your business functions. In freight forwarding, it is important to know your inventory levels. These levels help you plan your procurement schedules and prevent wastage. Relying on advanced shipping solutions keeps you ahead of your competitors. It is also necessary to know the location of your goods. When, where and who made the delivery should be recorded. Tracking is also one of the many benefits of an efficient transport management system. Also, monitoring your performance helps in identifying your weaknesses. Software shares insights into your performance history. You might want to save as much money as possible. Reducing your expenses is not the solution. You need software to balance your expenses. By aligning ERP and transportation you can reduce maximum fuel costs and lower carbon emissions. ERP is bound to shape the future of freight logistics.
What is the purpose of ERP software?
You may have grasped the basics of ERP by now. The main question is, why do you need ERP? There are 5 components of ERP software for freight forwarding and other businesses.
1-Finance
Managing your finances at an early stage can prevent losses. You may receive thousands of receipts on a daily basis, how can you possibly manage everything on your own? Hiring a large workforce seems like a good option. But wait, you will have to pay for their costs as well. Having ERP integration saves you from all the hassle. You can manage several customer invoices at the same time. The quicker you process the bills, the quicker you get paid. Software also tracks supplier orders which helps in supply chain management.
2-Human resources
Human resources are the building blocks of every company. You need a compatible workforce that understands your requirements. You cannot keep an eye on every worker. But it is important to track their performance. ERP software for freight helps you retain your employees. Tracking their performance allows you to create promotional packages for them. This will keep them happy and you do not have to look for further employees. Freight forwarding software provides accurate data about new workers to help you recruit them.
3-Logistics
Logistics is one of the main aspects of the freight industry. You need a reliable system that can send goods from one place to another. Time is money in the logistics industry. A single delay may disrupt the whole process. Connecting ERP and transportation is a smart choice. A mere human cannot manage a bulk of orders on his own. ERP systems provide visibility into various fields of logistics. It helps you to develop strategic plans to tackle any challenge that may arise in the logistics industry. Logistics technology also saves time by task automation.
4-Intelligence
You might have the phrase, work smart not hard. Software analyzes the productivity of your business and give intelligent suggestions. It helps managers to efficiently respond to customer demands. It also offers advanced shipping solutions to the customers and shipping partners. These solutions increase the overall productivity of your business. Software generates key point indicators (KPIs) to help your business identify its strengths and weaknesses. ERP integration also helps in risk management and improves production processes.
5-Supply chain management
You can have a broader view of the supply chain. ERP connects you to potential suppliers that are high in demand. It informs the supervisors of the amount of resources consumed. It also tells them what resources are being used and when to allocate them. This helps in supply chain management. Production starts when the raw materials are full. This saves utility costs and other additional costs. ERP also takes care of aligning the production policies with present demand. The ERP software for freight also ensures the replenishment of raw material at the right time.
6-Customer relationship management (CRM)
Customers are the life force of any business. You need a strong connection with your customers. Solving their queries at your utmost convenience, managing their demands and ensuring a timley delivery can be difficult. You need reliable freight forwarding software to manage all these tasks. Frequent delays in orders can agitate your customers. Also, they need updates regarding the status of their orders. ERP system aligns itself with the transport management system to plan the optimal routes for faster delivery. Furthermore, it suggests quick responses to customer queries. The faster you resolve their issues the more they will trust you.
How to use ERP software for freight forwarding optimization
Knowing the benefits of ERP might have piqued your interest. But how do you use it? Technically, ERP integration relies on a middleware that connects the ERP system to other applications. Middleware helps in simplification of the data formats by translating it. This creates compatibility and consistency within the system. One crucial step is to align and synchronize the data. The freight forwarding software provides accurate and smoother data. As soon as you establish the integration, data starts to flow between systems. The flow is bi-directional. This facilitates smoother and accurate data exchange. You can easily access several business functions. Logistics technology manages functions like finance, inventory, sales and resource allocation. Make sure that the integration meets your requirements. It must also be able to handle exports and connect to shipping lines. You can also use software to track the profitability of every step of the shipping process. ERP software for freight should be scalable and easy to adapt to upcoming challenges.
