ERP System for Freight Forwarding and Logistics Business

Shipping and logistics industry is one of the unique industries in India and countries worldwide with its own set of challenges which are combined with the ferocious competition existed around. This makes it quite essential that freight forwarding firms, non-vessel operating common carriers (NVOCCs), custom house agents, international freight brokers, shipping agents and cargo agents rationalize their diverse business operations in order to stay ahead in the market competition.

Implementing the right ERP system in regards to logistics and freight forwarding services can support the firms to properly streamline and accommodate their business operation amidst the competitive markets around in the world.

Whilst an ERP framework can help both big or small firms to incorporate various business and operational functions, while picking up a perfect freight forwarding software that enables you to manage, access, and share all the required information and communication flow with various departments. Therefore before you plan to implement an ERP system, it is really significant for the conce
ed business to take these following factors into their mind.

Bringing together all operational and accounting

fundamentals on a common platform

Even here the most significant factor to be looked at is the degree of integration that the ERP system is going to allow for your business functions. For example, a small and medium-sized freight forwarding firm which undertakes a number of applications to track and manage functions, including freight management, customs brokerage, documentation, container tracking, shipment tracking and compliance services would garner more benefits out of this integrated ERP system. This in turn would make the operation more competent, cost effective and would offer the management with full time monitoring access of all the in-bound/out-bound shipments and their respective payables/receivables

Improved Monetary control

The ERP system that you would be selecting to get implemented must provide a bigger control on the financial transactions by cross-checking data from various functional tasks and data functions. The same system would then allow the management to calculate the expected profit per shipment and then get an expected number of shipment’s actual cost and profit. This would further assist the management to ascertain the profit part of each job and further help them to look forward to future shipments/jobs that will be having a better profitability ratio.

Enhanced Communication flow

Information reporting, data archiving and data storage are one of the most important components of logistics and shipping Industry. The ERP system must be supportive enough to generate and archive reports, together with balance sheets, shipping-related MIS reports, packing lists, purchase orders and manifold invoices in regards to various business operations and dealings. Moreover, cargo credentials, including Cargo Arrival Advice (CAA), Cargo Arrival Notice (CAN), Delivery Order (DO) and House Bill of Lading (HBL) must be generated by the ERP system only. This would help the business owners’ big time in not only generating, but sending over all the necessary information and documents to the respective logistical chain partners.