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Why You Need a Logistics Software System

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Nov 5, 2021

Technology is drastically changing how businesses operate. In the supply chain and logistics industry, logistics software systems are being viewed as necessary technological tools to ensure great customer experience, automates processes, and capture deep data and analytics to support strategic decision-making.

Logistics software system

Businesses must ensure fast, efficient, and accurate deliveries these days—especially since consumers are also increasing their demands. The right logistics software can help enterprises by transforming how delivery chains are managed. With a robust logistics software system, businesses can improve their logistical processes ranging from warehouse management to last mile logistics. In this post, we will discuss why this kind of software is a good investment and how to go about choosing one.

Understanding Logistics Software Systems

Logistics management pertains to the process of planning, executing, and managing supply chains to ultimately get finished products to their delivery sites in a timely manner. Here, the right software can be a powerful tool that automates logistical processes so they can be managed in a more efficient and cost-effective manner. 

A logistics software system typically has a few primary components.

Last mile delivery management

The last mile is the final stage of your supply chain and logistics processes. The right logistics software offers businesses visibility into the last mile delivery logistics, ensuring that the goods picked up from the warehouse reach the end customer in the most efficient possible way. This typically requires robust tracking capabilities up and down the chain, route optimization capabilities, and serious connectivity between drivers, customers, dispatchers, and other stakeholders. 

Warehouse management

Modern warehouse management systems are aimed at automating and streamlining all warehouse-related functions and activities including collection of products, storage, staging, etc. Here, it’s not uncommon to see separate solutions for warehousing vs. transportation logistics, which is why robust, near real-time integration between these kinds of systems is critical.  

Customer service management

This component ensures that the business can promptly give attention to customer inquiries to increase customer engagement. This might include communication tools, mechanisms for collecting feedback, etc. 

Returns management

Effective software goes beyond ensuring that goods are delivered to the customers. Indeed, your solution should also be a useful tool for reverse logistics, i.e. when the customer returns an order because of damage or other reasons. Logistics software is useful in centralizing customer and order data to ensure that businesses are better equipped to handle the customer's needs without confusion or massive inventory issues.

Why Your  Logistics Software System Matters

The right software can offer a number of benefits by automating and optimizing delivery services. Here's what businesses have to gain by investing in smart logistics software:

Effective transportation management

Through automation, businesses can better control and manage their resources. Software that has a GPS tracking system as well as mobile apps can enable enterprises to locate their vehicles and drivers and provide them with updates, instructions, or directions as needed.

Route optimization

Simply put, you can save significant time and money by automating route planning and optimization. With software that offers up the most cost-effective routes in a matter of a few clicks, you can complete more deliveries using your current roster of drivers and vehicles.

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Improved fleet safety

Software that features telematics integration can go a long way towards enabling fleet managers and dispatchers to monitor their drivers' activities and movements. From there, you can get alerts when drivers engage in unsafe driving behaviors and provide the necessary coaching to increase overall fleet safety.

Increased customer satisfaction

Any software solution you adopt should help you achieve higher customer satisfaction scores. By decreasing delivery turn-around times and boosting visibility, a robust logistics software system can do just that. 

Must-Have Features in a Logistics Software System

Not all logistics software systems are created equal. When picking one, make sure it has these must-have features.

Route planning and optimization

Visible, pre-planned schedules and arrangement of deliveries is necessary to ensure effective transportation management. Here, your software must provide the most cost-effective routes so that goods are loaded and transported efficiently and cost-effectively.

Real-time tracking

The software must enable enterprises to trace and track their goods in real-time. It should offer real-time updates on each order’s status to both fleet managers and customers. In cases of unplanned or unforeseen events, the software should be able to notify all delivery stakeholders.

Custom reporting

Software that offers robust customer reporting capabilities makes it easy for executives to make data-driven decisions. A must-have logistics system should offer reports that can be configured easily and run on a recurring basis as needed.

Digitized billing and invoicing

Manually processing a host of driver settlements and client invoices is not only inefficient and time-consuming—it’s also highly prone to  human errors. The best logistics software makes settling invoices much quicker, more convenient, and more effective by automating document generation. This can save companies time and free up the finance or accounting team to focus on other high-value tasks or projects.

Security management

The software must be secure enough to detect unauthorized software changes, data breaches, and unauthorized use. The software should have measures ensuring that data and information are only accessible to authorized users based on their roles and permissions. Typically, a software provider will be able to offer up some security documentation to show the steps they’re taking to keep your data safe. 

Cloud-based technology

Cloud-based logistics technology offers significant cost savings to companies. For one thing, it eliminates upfront purchasing costs as well as ongoing maintenance and general service costs. It also cuts off unnecessary costs of hardware installations. A cloud-based logistics solution enables companies to only pay for the bandwidth they need when they need it. In this way, it powers much more scalable logistics management operations—and it saves you the hassle of keeping up with ongoing cycles of updates and planning against eventual obsolescence. 

The right logistics system software can help businesses optimize their supply chain and logistics processes and ultimately achieve higher profits. It does this by automating processes, optimizing routes, offering real-time tracking, improving productivity, and cutting down operating costs—all while increasing customer satisfaction. 

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