Choosing an ERP System for Freight Forwarding and Logistics Business

The complex nature of the transport and logistics sector combined with the fierce rivalry that exists in this industry brings special challenges to the little and midsize operators.

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This makes it critical that freight forwarding companies, non-vessel operating common carriers (NVOCCs), custom house agents, international freight agents, shipping agents and freight agents streamline their multifarious business operations to remain competitive. Deploying the proper ERP system dedicated to logistics and freight forwarding helps businesses economically realign and scale up their activities whilst being flexible to the rapidly changing regulatory environment.Whilst an ERP frame can go a very long way in helping you integrate diverse business and operational functions, choosing an perfect freight forwarding software that lets you handle, access, and share information coming from and going into various departments is not straightforward. Prior to planning and deploying an ERP system, It’s important that companies analyse their prospective keeping the following points in mind:Integration of all operational and accounting components inside one platformThe most important factor to consider is the degree of integration that your ERP allows. For instance, a little and midsize cargo forwarding agent who uses different applications to manage functions, including cargo management, customs brokerage, documentation, container tracking, cargo monitoring and compliance solutions would benefit more if each of the applications have been incorporated into a single master program predicated on Tally ERP 9 platform. This customised Tally alternative makes the operation much 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 crucial multi-branch tasks. Contemplate each branch of a multi-location delivery agency working with another business accounting software. This is going to result in disconnected pools of data separate to each other causing unnecessary delay, disruption and data re-keying whereas the business owner needs real time business and operations information observation. On the flip side, if the same service decides to associate with a Tally services supplier and deploy a centralized software program, it has a higher predictability of its own operations. Since this situation makes it possible for the master application to read, write and edit data to and fro from each of the division 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 employ should offer a higher financial control by cross-integrating info from operational activities and information from actual transactions. The system should permit the owner to figure out the expected profit per dispatch and compare it to the shipment’s actual price and gain (using the information in transactions, receivables, payables and brokerage expenses). This also assists the owner to monitor each job’s profitability which then can enable them to concentrate on future shipments/jobs which have a greater profitability ratio.Quick data accessibility, report creation, and data archivingInformation coverage, data archiving and data storage are important aspects of the logistics and shipping enterprise. The ERP system should have the ability to create and archive files, including balance sheets, shipping-related MIS reports, packaging lists, purchase orders and multiple invoices for different chain spouses and quotes. This helps business owners not only to recover but send these records directly from the machine to the logistical chain partners

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