Logistics for a business includes physical distribution, material handling, packaging, warehousing, freight transportation, sales order processing, inventory planning and production planning.
Logistics management is that part of SCM which in order to meet customer requirement, implements and controls forward and reverse flow and storage of goods, services between the point of origin and the point of consumption. Logistics involves getting in the right way, the right product, in the right quantity and right quality, in the right place at the right time, for the right customer at the right cost. Early involvement in product development projects and product launch plans results in smoother logistics operations. Logistics play an important role in the coordination of the activities in the entire supply chain, product development and commercialization of the products. Logistics also contribute to the returns management process.
Whatever be the size of the business it is better to use logistic management software as it provides the following benefits:
- Logistics software allows the shippers to reduce expedited shipments through better shipment planning and system directed exceptions handling.
- Logistics software helps in creating route maps for shipments, that is making sure the correct carriers are selected and the optimal shipping mode used.
- A logistics software technology also automate functions such as load tendering to carriers, paperwork and load planning. Automation also helps the processes to work more efficiently and more effectively.
- Logistics software provides information on a carrier which can allow the business to receive a lower rate if possible.
- Breakage of the products is a regular problem in the shipping process and the logistics software solves this problem by connecting shippers with carriers that offer the right mixing and stacking strategies for a particular type of freight.
- Logistics software can instantly compare the audit of a freight invoice against the shipping contract and helps the business to save the money by protecting the business from paying for services that weren’t rendered as promised.
The benefits of logistics management software cannot be overlooked. As logistics is the vital part of any business process, adapting this software ensures successful business.