Two-thirds of logistics employees believe that traditional freight forwarding will be disrupted in the next 3-5 years.
Why?
Technology.
Costs for freight forwarding and customs brokerage will continue to rise in 2018. The companies who are successful will need to alleviate these costs that impact their bottom line.
Technology and innovation will drive financial performance.
We see this with cloud-based ERP solutions that are easily integrated into larger internal solutions.
Vahana is a good example. Vahana is an ERP BI solution that integrates with your existing operating platform. By combining BlueJay and Sage 300 powered by SAP BusinessObjects, companies can improve capabilities and improve productivity.
ERP solutions like Vahana connect the dots between your finances to operations. Finance is essential because it gives you feedback about whether you are making ends meet – in every country, in every currency.
In this article, I discuss how financial operations are critical to your logistics company's success and address some key issues.
ERP Systems Keep Finances Aligned for Freight Forward & Brokers
Traditional ERP systems offer a 'good enough' solution. They improve transportation management, planning, and support many supply chain processes.
Today, ERP systems have evolved to create a holistic, end-to-end supply chain solution with significant financial opportunities. Improving your financial performance will transform your supply chain.
Jonathan Byrnes, the senior lecturer at the MIT Center for Transportation and Logistics, says:
"Companies are realizing the financial benefits of integrating more with customers and suppliers. The few who do it well are making a fortune, even in this tough economy. Supply chain management can have a massive impact on cost, profitability, cash flow and risk."
And, many logisitics companies are already seeing the impact.
Golden Eagle Distributing, an outdoor equipment distributor, saw a rise from 22% of total orders the first year, to roughly two-thirds of orders today by integrating with an ERP solution.
Lodge Manufacturing Company, a cast iron cookware company in the United States, invested $90 million in expanding their manufacturing and distribution capacity. They created a cloud-based warehouse management system that integrated warehouse managemeny system (WMS) with Sage (ERP) system.
Lawson Products, a manufacturer and distributor of component parts, implemented an ERP solution with their WMS to automate picking, storage, and shipment of their products.
Shane McCarthy, senior vice president of supply chain and business development Lawson, says, "Our customers, sales representatives, and customer service can now see what product is available in our network,” McCarthy says, “and there’s no doubt that our packaging and kitting capabilities distinguish us when it comes to Vendor Managed Inventory, which is an important niche for our business. We have the best, most flexible and scalable system in the market.”
As you can see from the examples above, cloud-based software platforms, like Vahana, provide operational efficiency, better visibility, and increased revenues.
ERP cloud solutions can transform your business.
5 Financial Benefits of Using a Cloud-Based ERP Solution for Your Supply Chain
Have you lost thousands of staff hours with order management?
Or, are you trying to reduce customer response time?
What about shipment visibility, do you know where your packages are during shipment?
If you answered yes to these questions, you're in the same boat as the majority of logistics companies. Integrating new technology, like ERP cloud software, can help you maintain a competitive edge.
The cloud is helping ERP keeps its promise. Cloud solutions allow ERP systems to work throughout the business. Your customers are adapting to technology; it's time you start adapting too.
Let's take a look at some of the financial benefits of using a cloud-based ERP solution:
1. Automation
A logistics automation system allows freight forwarders to enter information once; then it is updated across systems. It uses the technology of a Transportation Management System (TMS) to manage multiple departments.
From invoicing to monitoring of shipment locations, a cloud-based ERP solution streamlines communication between shippers and customers.
Automating these tasks not only saves time but reduces the risk of human error from manual entry resulting in a better bottom line.
2. Response Time
In a competitive industry with increasing demand, customer response time can be the difference between keeping and losing a contract.
A solution like Vahana can help companies operate faster with more flexibility. Tasks, like accommodating compliance requirements or adding a new route, can be done without costly developer hours. Organizations can also standarize customer relatiopnships to create a more efficient supply chain.
3. Visibility
Logistics server providers need to maintain a reliable shipment schedule to stay on time, keep costs low, and make sure customers are happy.
Supply chain using ERP cloud software can offer their shippers better visibility with real-time updates of freight information from end-to-end.
4. Notifications
Automated notifications can be sent to your customers as they move through the lifecycle. They will receive alerts when major milestones might be disturbed by pre-defined rules like delayed shipping agreed upon prior.
These notifications increase customer service and mitigate risks.
5. Growth
If you want to scale, you need to focus on how to improve the use of technology for each department. With a cloud-based ERP solution, you can solve that problem.
If you operate in multiple countries, you can see the impact of short-term and long-term peaks from different time zones.
With accelerated technologies, business operations can be more agile and pivotable.
Conclusion
In a world that's as fast-paced and digital as this one, creating good processes lets you focus on what matters most to your business. You can build partnerships, not individual transactions.
Finance impacts many of the enterprise's most significant challenges.
