What is Logistics Software?

The Merriam-Webster Dictionary defines logistics as, “the handling of the details of an operation.” At the heart of the profitability and overall success of a business is an efficient logistics system. Managing production, parts, inventory, and shipments all fall under the responsibilities of the logistics, or supply chain, management department. Such a large job includes the daunting task of managing the many details associated with logistics. Employing the use of a good logistics company can greatly affect the outcome of the logistical branch of a business. However, hiring a company that specializes in logistics can prove to be very costly to carry out. Therefore, utilizing a logistics software program may be more economical for small to moderate facilities.

When a logistics company is used, it will handle the day to day management of the business. It will have its own trained personnel that can micro-manage every detail of the supply chain. For a large company with big operations, this is a necessity. Trusting such a vital factor to an untrained person could be detrimental to the business. Many manufacturing enterprises will also maintain a logistics manager as well. Large companies will recognize cost-saving benefits that will offset the expense of continued use of a logistics company.

Unlike a large manufacturer, even a small company can benefit from logistics software. Many software makes have designed an extremely easy to use, user-friendly interface. They are fully automated and can come as a suite with many optional applications or individually loaded for specific applications only. Add to the customizable features, that they often offer online and telephone tech support; this software pays for itself in very little time.

One thing that logistic software does is use a database to make and store various records necessary for keeping track of the many processes associated with a supply chain. The software can manage the distribution, warehousing, inventory, transportation details and expenses, and customer-friendly customer service options.

Some software makers also offer global visibility, bar-code scanning, billing administration and automated issue reporting to increase the value of the services that a business gives to their clients.

A business can track how many parts they have on hand and ordered, how much completed merchandise is available, current trucking routes and loads available, and log customer service interactions. Being able to input this information seamlessly and with as little effort as possible, every business that uses logistics software or a logistics company can save money. High inventory levels cost company’s money with the operating cost associated with warehouses. Being able to communicate with a client when a load will be available will increase customer satisfaction levels. And finally being able to log customer problems, a company can identify a trend before it becomes too overwhelming.

There are several services available to manage a company’s logistics department. Without selecting a method to manage a company’s logistical issues, it will loose money and potentially suffer from low customer and employee satisfaction. Using a software or company is very seldom optional. Therefore, the important thing is to find one that best suits the needs of one’s company, at a cost they can afford, and utilizing all its features to develop a business that is well run and sure to be successful.

Inventory Management Software Is Crucial For Companies That Manufacture Products

Inventory management software is going to be valuable to different types of businesses for different reasons. What’s being focused on in this article are those businesses that not only carry inventory, but also use it to manufacture the end product.

These companies may have several ways of running things, but these methods can be outdated and be costing them a lot in the long run.

You see a company that also has to manufacture their products is in a much more vulnerable position than a company that holds a completed product. A manufacturer will need to make sure they have all the needed materials in order to do this.

This is going to include raw materials, components, as well as subassemblies. At all times they will need to have the right amount of each individual component.

Bad inventory management means running out of components at critical times, because running out of even one of these components can have very negative results. The main one being it is going to prevent a business from being able to create the products they need in order to supply other businesses or customers.

Only when companies have all the components they need will they be able to finish manufacturing their goods. Inventory management software will make sure businesses are never put in this position.

There are other additional benefits to having inventory management software for a businesses that manufacture products. Usually several machines are used in the manufacturing process.

Each one of these machines can deal in a different phase of the manufacturing process. These machines cost a lot of money to maintain and in order to achieve maximum efficiency they must be kept running during certain times.

If one part is missing from the manufacturing process this means the entire operation is going to be shut down. No further production can take place. The downtime it is going to take to get these products on hand can seriously impact the overall profitability of the business. This is also going to hurt any supplier or big client who is dependent upon them.

Not having this inventory software can mean you develop a bad reputation in the long run and the last thing any business wants is to develop a reputation for not being dependable and reliable when it comes to supplying needed materials and or finished products.

Odds are clients would choose to go elsewhere and it will be extremely hard for any manufacturer to survive taking such losses. Inventory management software allows you to set up an inventory management system so you always know you have needed materials on hand.

The right tools at the manufacturing level are more important than any other level because at the manufacturing level inventory management is probably the most important.

This is going to prove to be very pivotal that every step that can be taken is taken. Not having an effective system in place has a domino effect. Inventory management software makes everything much easier and protects you against possible future problems.

In the end, a company that has to manufacture products and is dependent upon an assortment of products must make sure they have more than enough on hand. Any outdated method of ensuring this opens the door for errors that can have disastrous consequences.

The right inventory management software allows a company to set up an effective warehouse management system that will minimize if not completely eliminate these occurrences.

Suppliers and customers will always get their needs met and a manufacturer’s reputation will not be hurt as a result.

Logistics Software Removes the Need For 3rd Party Logistics Providers

The more products a company ships, the more shipping costs become subject to cost saving strategies. For most companies, realizing the most economical shipping solutions depends on the implementation of the most popular form of supply chain software (SCS): logistics planning software. On the most basic level, the solutions offered by logistics software improve a company’s phased planning measures, product sales forecasts and scientific safety stock. Some companies hire 3rd party logistics providers, but more and more companies are turning to logistics software in place of 3rd party logistics providers for two reasons: logistics software offers the same level of quality as 3rd party logistics providers and it offers it a much lower price.

When companies use logistics planning software, they can centralize and integrate their product delivery system by allowing drivers at different sites to connect using the most efficient travel routes, which increases product delivery time and decreases fuel costs by reducing empty running. Regardless of which style of logistical planning a company needs to implement-inbound logistics, contract logistics, LCL/FCL, LTL/FTL, etc.-logistics planning software allows companies to arrive at advanced planning and scheduling solutions that can significantly increase their bottom line. By implementing this software, companies can improve the cost effectiveness of the following product distribution arrangements, among others: container planning and empty container repositioning, intermodal transport, multi-hub and multi-leg transport, cross docking, multi-compartment trailer planning and inventory management.

One example of how logistics software helps companies reduce their shipping costs can be seen in less than truckload (LTL) shipping arrangements. Especially beneficial for companies that don’t ship a high volume of goods, LTL shipping allows companies to pay a fraction of full truckload (FTL) shipping costs. LTL shipping combines multiple partial truckloads into a full truckload and splits the full load price between the shippers. For trucking companies, LTL is beneficial because it draws in customers who would traditionally ship their good by parcel carrier. Another example of how logistics software can save companies money is by examining the characteristics of shipping routes. For example, while the shortest route might seem to be the fastest route, this software can reveal that a longer route would be faster due the traffic characteristics of the shorter route.

Without this software, most companies continue to pay more for logistical solutions than they need to. While research shows that both logistics software and 3rd Party logistics providers can help companies reduce their annual shipping costs by 10 percent at the end of one year, opting for this software adds to the savings. When companies use logistics software, they increase their bottom line in basic two ways: by delivering their products to the sales floor faster and by reducing the cost of getting them there.