Logistics management software to transform your logistics operations
By Komal Puri | October 13, 2022
The inclination of technological operations in businesses today, especially logistics and supply chains which relays a positive influence and noticeable advantage. Logistics management software has been seen as the pillar to operation supports and good customer experience. This digitized influence operates on the grounds of automation and data utilization to make critical decisions.
As customers’ demands increase, a call for fast and efficient service deliveries becomes an adaptable problem that needs intervention. The use of logistics management software has shaped and restructured how items, freight, inventory, production, and general distributions are controlled. Consequently, supply chains process hit viable solutions and several other enterprises became ardent technological investors.
Now, there’s a noticeable advantage and production improvement in general operations from warehouse management to delivery, and the readiness of customers to leave positive reviews. In this article, we will walk you through all the critical aspects of logistics management software mastering.
The Logistics Management Software Landscape
Logistics software industries became a core integration and coordination of supply chain owing to the overall effective analytical breakdowns of customers’ satisfaction and logistics automated operations. Today, technology can be seen in every industry as the vehicle to enhance performance and delivery through automation.
Enabling logistics and supply chain software management calls for better real-time fleet management, streamlined communication and enhanced customer service. The logistic software industry grows daily due to the leverage in technology advancement for smooth operations and better customer service. They assist in streamlining workflow by automating daily tasks, provide real-time information, and reduce delays.
There’s a complete change in the traditional way of managing business activities, conversion of data into insightful information. Implementation of data management into actionable insights through software applications provide good communication and enhance inventory processes.
Provision of tracking code gives customers a sign of relief during shipping and delivery. They tend to trust businesses more, hence increase security, reduce logistic delivery expenses, manage time, and increase productivity for the industry.
International Data Corporation (IDC) stated and I quote, “Logistics companies are expected to dedicate 35% of their business process outsourcing services budget to process automation, majoring on inventory, order and shipment tracking by 2022.” Hence, provision of custom logistics software application on websites and mobile devices for better customer engagement, reporting and real-time data interaction. Thereby improving customer satisfaction in such a way to determinate the continuity of business or a particular item by measuring the loyalty of customers.
What is a logistics management system and how does it work?
Logistics management system (LMS) is the process of planning, implementing, and controlling supply chains for storage of items, freight, inventory, production and efficient transportation from accessing the stage to meeting customer’s needs.
Logistics management system becomes easier through logistics software for automated selection, effective delivery and adequate storage capacity of warehouses. The system majors on meeting customer’s needs within a stipulated time frame. It can provide services to consumers, retailers, and manufacturers.
Goods and services can be processed in the forward direction and backward direction through logistics software. To manage these processes effectively, logistics companies implement this logistics management software to provide business automation. It also helps to manage all the processes effectively in the two directions. The system leverages software that helps ease the sorting, selection, order booking and delivery. With this, items can easily get to customers within a short period of time and in good condition.
However, in the backward direction, items rejected by customers due to damage or other effects can be returned easily and reprocessed through the software management system. Logistics management system operations can be done in different ways; by self-management and third-party logistics through the logistics software. Depending on the ability and control, outsourcing logistics operations can be done through third-party logistics (3PL) companies. Third-party logistics helps to manage operations. There are several third-party logistics companies which offer this service.
5 Main Components of Logistics Management
1. Warehouse management
Warehouse management system entails the process of keeping and automating all the warehouse operations through logistics software. It includes all the activities of the supply chain such as the collection of goods, preservation, transportation and tracking of items during delivery.
Logistics management software is responsible for managing and monitoring of movement of items from the warehouse to the customers in a perfect condition.
2. Transportation management
Transportation management is the logistic process that ensures end-to-end movement visibility. Transport and logistics management software helps to plan for efficient warehouse management and multiple deliveries both in the forward and the reverse movement in order to give customers better service experience.
3. Last-mile operations
This is always the last stage of the logistics delivery supply chain which helps to gain-to-end delivery through logistics software. It involves the picking of customer items from the warehouse in good condition for delivery. The logistics and supply chain could be in the form of a small or big package delivery carrier often due to the aggregation of customer’s attention at a particular time in a specific location.
4. Customer service management
This is a logistics management app that ensures prompt attention to all customer queries and enquiries. the logistics software ensures it is usually efficient to engage customers in order to solve their problems.
5. Returns management
Logistics fleet management software deals with all the activities of supply chain both in the forward and reverse movement. logistics software ensures that when a customer returns an item due to damage or other reasons, there's a relay query and information detection thereby collect the data of the customer and the items to know how to solve the customer's needs.
10 Important Logistics Management Software Features
1. Freight dispatch management
One basic feature of good shipping logistics software in the supply chain is having a pre-planned arrangement of freight movement. This planning helps to run a smooth delivery service from start to finish (from point of loading to destination for delivery).
2. Freight visibility management
Freight visibility feature in shipping company software is of the essence particularly for having modality provided by high quality data for freight hauling processes. It is economical and time-saving for best shipments conveyance and route mapping right from the beginning of loading to dispatch.
3. Current time shipment tracking
The best logistics software should provide a reasonable medium of tracing and tracking goods. An update of the carrier's transit that provides real-time freight visibility from shippers to their customers for automated notifications of road happenings should be employed. Instances of late delivery and unpredictable technical or mechanical faults cannot be neglected, hence, current transit updates with the aid of GPS would be required to keep updates on every operation.
4. Fuel management
For every shipping software, it is expedient to consider the aspect of fueling as a very important quality that must be present. Fuel management systems are useful for accessing fuel sites, controlling fuel purchase and for security reasons especially while tracking delivery and consumption. In addition, the software may incorporate control for preferred fuel sites, trace fuel transactions and inventory, consumption monitoring, reporting.
5. Effective engine optimization
A standardized shipping logistic management should have a strong and effective engine optimization capable of monitoring how goods are set in the vehicle, project easiest and accessible vehicles and road path for shipments delivery, control for overdue contracts, choose carriers for each shipment based on allocations and monetary value attached. More so, an effective engine optimization system should be able to strategise and create route plans in case of multiple restrictions during the supply chain process.
6. Carrier contract management
The nucleus of any shipping organization are contracts. Effective supply chain management software should give logistics companies the opportunity to reinforce and aggregate all carrier contracts in a database in order to adequately and preferably align the value of the business through negotiation and contracts. These great tools are the principle behind every outstanding TMS technology.
7. Hauler management
With this feature present in the logistics application software, it is very easy to know and pay the hauler who delivers a shipment to the right place, without any challenges. This management provides the personal data of the hauler, distance covered per time, competency and efficiency by checking reports on the software database.
8. Digitalizing billing and payments
Managing payments and accounts efficiently is fundamental for every business organization. However, while making diverse payments across multiple banks, there may be inefficiency and risk of errors when done manually thereby making the work tedious, exhausting and sluggish. Therefore, a more convenient, fast and effective automated system that includes payment options on your shipping logistic software is highly needed to achieve supply chain management goals. This will save you a great deal of stress and time to pay your staff on time.
Another benefit of this payment automated system is that it reduces frauds such that electronic invoices and paying for supplies can be automatically generated without paying multiple times for duplicates and fraudulent invoices. This feature helps you when the need arises to increase the rate of your shipping charges by sending out your invoices promptly to the customers. You can track your shipping from end to end and also keep track of payment and invoices.
9. Reports database management
In order to make a speedy, astute and data-driven choice in logistic supply chain management, the vital element guaranteed possesses a good reporting database system. Some standard reporting equipment such as visual communication graphs, dashboards and maps specially designed to view transport structure offers a medium for disseminating essential and trending information and investigation within a short period of time, which in turn aids refined preparation.
10. Security management
Good delivery software should maintain security and safety of their clients and staff. The security management of the shipping logistics software should be tight enough to detect data breaches, unauthorized software changes and unapproved users without influence on the management’s privacy. This can be achieved when the security system has sufficient backup. More importantly, information and data should only be available and made accessible to approved users while outside users should be approved only to access the system by invitation. The standardized security system should be able to block windows access to outsiders, secure BIOS and provide passwords with access management.
Trends Driving Businesses to Embrace Software for Logistic Management
Growing Need for Same-day and One-hour Delivery
Every customer desires prompt service delivery. This can only be achieved through an automated system. Hence, the need for logistics fleet software which oversees and controls every aspect of a logistics business, leaving with customers the best service experience.
Delivering on Evolving Customer Expectations
FarEye logistics management software manages operations with pre-algorithm simulations. It is dedicated to ease delivery movement and ultimately deliver goods beyond customer expectations.
Popularity of Hyperlocal Deliveries
Logistics software systems control hyperlocal supply chains. It easily automates requests from customers within a specific demography. The system enables items requested to get to the right customers within the same geographical location.
Importance of SaaS Model
SaaS offers notable savings for numerous reasons. It cuts off upfront cost of purchasing, as well current costs for maintenance and general service improvement. It prevents unnecessary spending on hardware installations. The model makes SaaS services affordable, reliable and cost-effective. Logistics management information software model through SaaS is easy to download and run.
Complexities in Managing Returns
In recent time, managing return items has been effective and moderately controlled because of transport and logistics management software. Unlike the traditional means of treating returns, customers become aggressive and unhappy because return items service did not seem to have a solution. This gives a bad impression on how the operations are managed.
Contactless Deliveries and Curbside Pickups
Logistics management system makes contactless and curbside pickups simple and flexible. Through this operating system, customers can order online and enable pickup in warehouses or stores.
The Need to Make Deliveries Profitable
Logistics management software features enable profitable business services. It automatically takes care of every aspect of logistics in order to ensure end-to-end delivery visibility. In other words, businesses achieve services with optimum profits and customer experience the best delivery service.
Driving Omnichannel Logistics
This is the process logistics which synchronize inventories. The process combines all distribution functions to meet customers’ needs. For instance, it’s easier to offer service to customers within their locality for fast delivery than to relay requests to the main center which may take time to deliver.
Benefits of Logistics Management System
Logistics software provides numerous solutions to the logistic industries through automation and optimization service deliveries.
1. Seamless Transportation Management
The movement detecting software functions as a concentrated control system for general transportation systems. Through this system, enterprises can precisely manage their resources. The use of GPS and mobile applications for current updates, detecting precise direction and location of drivers will assist enterprises to gain end-to-end logistics visibility.
2. Automated Routing
Logistics tracking software automates efficient planning for multiple deliveries. It assists the drivers to optimize routes in real-time and automate route planning in order to ensure high-level of customer transparency within a short period of time.
3. Route Optimization and Real-Time Route Updating
Logistics software provides customers with a self-service delivery model by Optimizing routes in real-time and automating route planning through algorithm checks in order to build a proactive supply chain and logistics model.
4. Monitoring Driver Behavior and Safety
Logistics detecting software helps businesses to gain end-to-end logistics visibility by monitoring driver’s movement and mitigating transportation risks, thereby providing customers with the best service delivery.
5. Business Intelligence Tools
Logistics tracking software helps to build a proactive supply chain and logistics model through automated task allocation and discharge thereby, providing customers a self-service delivery model that spurs them to leave the best reviews.
6. Scalability and Flexibility
Logistics tracking software should make deliveries easy and supply chain profitable for businesses.
7. Improved Customer Satisfaction
Building a proactive supply chain and logistics model through automated task allocation and shrinking delivery turn-around-time, customers will experience a self-service delivery model thereby leaving the best reviews after service.
Komal Puri is a seasoned professional in the logistics and supply chain industry. As the Senior Director of Marketing and a subject matter expert at FarEye, she has been instrumental in shaping the industry narrative for the past decade. Her expertise and insights have earned her numerous awards and recognition. Komal’s writings reflect her deep understanding of the industry, offering valuable insights and thought leadership.