Choosing an ERP System for Freight Forwarding and Logistics Business

The complex nature of the transport and logistics sector together with the fierce rivalry that exists in this sector brings special challenges to the small and medium-sized operators.

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This makes it imperative that freight forwarding companies, non-vessel operating common carriers (NVOCCs), custom house brokers, international freight brokers, shipping agents and cargo representatives streamline their multifarious business operations to stay competitive. Whilst an ERP framework can go a long way in assisting you to integrate diverse business and operational purposes, choosing an perfect freight forwarding software which lets you handle, access, and share information coming from and going into various departments is not easy. Before planning and deploying an ERP system, It’s important that companies analyse their prospective keeping the following factors in mind:Integration of operational and accounting elements inside a single stage The most significant aspect to consider is the amount of integration your ERP allows. For instance, a little and midsize cargo forwarding agent that uses distinct applications to manage functions, including freight management, customs brokerage, documentation, container tracking, shipment tracking and compliance solutions could benefit more if each of the applications are incorporated into a single master application based on Tally ERP 9 platform. This customised Tally alternative makes the operation more efficient, economical and provides the owner with real-time visibility of in-bound/out-bound shipments and their corresponding payables/receivables.Avoiding duplication due to centralization of multi-branch activities The second parameter to consider is to what extent the ERP system permits the centralization of crucial multi-branch tasks. Contemplate each branch of a multi-location delivery service using another small business accounting application. This will result in pools of information separate to each other causing unnecessary delay, disruption and data re-keying whereas the business owner needs real-time business and operations data observation. On the flip side, if the same agency decides to partner with a Tally services supplier and employ a centralized software application, it’s a higher predictability of its own operations. Because this situation allows the master application to read, write and edit information to and fro from each of the division offices, it assists business owners track shipment-wise payment, performance, profitability and outstanding particulars.Improved financial management and greater visibilityThe ERP system which you choose to implement should provide a higher monetary control by cross-integrating info from operational activities and information from actual transactions. The system should permit the owner to figure out the expected gain per dispatch and then compare it to the shipment’s actual price and gain (using the data from transactions, receivables, payables and brokerage costs ). This assists the owner to track each job’s profitability which in turn will help them to concentrate on future shipments/jobs which have a greater profitability ratio.Quick data access, report generation, and information archivingInformation reporting, data archiving and data storage are all important aspects of the logistics and transport enterprise. The ERP system ought to have the ability to generate and archive files, including balance sheets, shipping-related MIS reports, packing lists, purchase orders and numerous invoices for different chain spouses and quotes. What’s more, freight documents, such as Cargo Arrival Advice (CAA), Cargo Arrival Notice (CAN), Delivery Order (DO) and House Bill of Lading (HBL) should be directly generated from the program.

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