More and more links of the supply chain are relying on software based solutions for management, tracking, communication, and automation. Logistics companies use these types of systems to give their customers more visibility—helping to streamline operations all the way down the chain.
Benefits of logistics software
The main benefits of software solutions boil down to integration and automation. Logistics software can help in several areas:
Proactive order management and recovery
Logistics companies can find, retrieve, and respond to accurate, up-to-date information about importers shipments—essential in the age of “just in time” supply chains.
Refine transportation efficiency
Transportation means fuel, energy, and labour costs. Software can help logistics companies streamline transportation with capacity forecast sharing with carriers, automation, and carrier allocation management.
There are any number of issues that affect delivery and cause delays. Logistics management software can integrate data from throughout the supply chain to help identify potential areas of improvement.
Faster delivery and reduced costs
Logistics companies can more efficiently compare carriers, routes, and transportation methods to find the best rates. Improved planning of the shipments can cut costs as well.
Software within the supply chain
There are many options for software and more coming to market every day. While some specialize in shipping and transportation, others are better for procurement and spend management.
Software systems that logistics companies use tend to fall in these categories:
- Procurement/demand management systems
- Transportation management systems (TMS)
- Warehouse management systems (WMS)
- Order entry systems
- Inventory replenishment systems
Cloud vs hosted
There are essentially two types of software architecture: cloud based or hosted. Cloud based or SaaS (software as a service) solutions are hosted off site. Hosted or licensed solutions are stored and managed on site.
Each has benefits and drawbacks:
- Cloud based logistics software offers a lot in terms of scalability, connectivity and ease, but
- in-house systems offer more control for companies that have the staff and resources.
Ask one of our logistics professionals how Cole increased visibility along your supply chain can help streamline your operations. Connect with our teams today.
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