Choosing an ERP system for forwarding and logistics

The complexity of shipping and logistics combined with the fierce competition that exists in this sector presents unique challenges for small and medium-sized operators. This makes it imperative that freight forwarders, non-vessels operating common carriers (NVOCCs), customs brokers, international freight brokers, shipping agents and freight agents streamline their multifaceted operations to remain competitive. Using the right ERP logistics and forwarding system can help companies fine-tune and scale their operations while adapting to rapidly changing regulations.

While an ERP framework can go a long way in integrating various business and operational functions, choosing an ideal freight transport software that allows you to manage, access and share information from and to different departments is not easy. Before planning and implementing an ERP system, it is important that companies analyze their potential, taking into account the following factors:

Integration of all operational and accounting elements within one platform

The most important factor to consider is the degree of integration your ERP allows. For example, a small and medium-sized forwarder using different applications to manage functions including freight management, customs forwarding, documentation, container tracking, shipping tracking and compliance services would benefit more if all applications were integrated into a single master. application based on Tally ERP 9 platform. This tailor-made Tally solution makes the operation more efficient, cost effective and provides the owner with real-time visibility of incoming / outgoing shipments and the associated debts / receivables.

Avoid duplication of work by centralizing tasks with multiple sites

The second parameter to consider is the extent to which the ERP system enables the centralization of important tasks with multiple sites. Consider each branch of a multi-location forwarding company using a separate business accounting application. This will result in disconnected data pools that are independent of each other, leading to unnecessary delay, interruption, and data re-entry, while the business owner needs real-time data monitoring of business and company data. On the other hand, if the same agency decides to partner with a Tally service provider and implement a centralized software application, it will have greater predictability of its operations. Since this scenario allows the main application to read, write and edit data from each of the branches back and forth, it helps business owners track shipping, payment, performance, profitability and excellent detail.

Improved financial control and more visibility

The ERP system you choose to implement should provide greater financial control by cross-integrating operational task data and actual transaction data. The system should allow the owner to calculate the expected earnings per shipment and then compare them to the actual costs and earnings of the shipment (using the data from transactions, receivables, debts, and brokerage fees). This helps the owner to track the profitability of each task, which in turn can help him focus on future shipments / jobs with higher profitability.

Quick access to information, report generation and data archiving

Information reporting, data archiving and data storage are all important aspects of logistics and shipping. The ERP system must be able to generate and archive reports, including balances, shipping-related MIS reports, packing lists, purchase orders and multiple invoices for different chain partners and quotations. In addition, freight documents, including Cargo Arrival Advice (CAA), Cargo Arrival Notice (CAN), Delivery Order (DO), and House Bill of Lading (HBL), must be generated directly from the application. This not only helps entrepreneurs to retrieve these documents directly from the system, but also to send them to the logistics chain partners.

Source by Riyaz Tamboli