Choosing an ERP system for freight forwarding and logistics companies

The complex nature of the shipping and logistics industry combined with the fierce competition that exists in this sector presents unique challenges for small and medium-sized operators. This makes it imperative for freight forwarding companies, non-ship common carriers (NVOCCs), customs brokers, international freight brokers, shipping agents and freight forwarders to optimize their multiple business operations. to remain competitive. Implementing the right ERP system dedicated to logistics and freight forwarding can help companies efficiently realign and scale their activities while adapting to the rapidly changing regulatory environment.

While an ERP framework can be very helpful in helping you integrate various business and operational functions, choosing an ideal freight forwarding software that allows you to manage, access, and share information coming and going from various departments is not easy. Before planning and implementing an ERP system, it is important that companies analyze its potential taking into account the following factors:

Integration of all operational and accounting elements in a single platform

The most important factor to consider is the degree of integration that your ERP allows. For example, a small and medium freight forwarding agent that uses different applications to manage functions including cargo handling, customs clearance, documentation, container tracking, shipment tracking, and fulfillment services would benefit. more if all applications are integrated into a single master. Application based on the Tally ERP 9 platform. This customized Tally solution makes the operation more efficient, profitable and provides the owner with real-time visibility of the incoming / outgoing shipments and their corresponding accounts payable / receivable.

Avoid duplication due to centralization of multi-branch tasks.

The second parameter to consider is to what extent the ERP system allows the centralization of key tasks from multiple branches. Consider each branch of a multi-location shipping agency using a separate business accounting application. This will result in disconnected and independent groups of data, causing unnecessary delays, interruptions and key changes, while the business owner needs real-time business and operations data monitoring. On the other hand, if the same agency decides to partner with a tally service provider and implement a centralized software application, it has greater predictability of its operations. Because this scenario allows the master application to read, write, and edit data back and forth from each of the branches, it helps business owners track payment, performance, profitability, and pending details based on the Shipping.

Improved financial control and greater visibility

The ERP system you choose to implement should provide greater financial control by cross-integrating operational task data and actual transaction data. The system should allow the owner to calculate the expected profit per shipment and then compare it to the actual cost and profit of the shipment (using transaction data, accounts receivable, accounts payable, and brokerage expenses). This helps the owner track the profitability of each job, which in turn can help him focus on future shipments / jobs that have a higher rate of return.

Quick access to information, report generation and data archiving

Information reporting, data archiving, and data warehousing are all important aspects of the shipping and logistics business. The ERP system must be able to generate and archive reports, including balances, shipment-related MIS reports, packing lists, purchase orders, and multiple invoices for different chain partners and quotes. Additionally, cargo documents including Cargo Notice of Arrival (CAA), Cargo Notice of Arrival (CAN), Delivery Order (DO), and House Bill of Lading (HBL) must be generated directly from the application. This helps business owners not only retrieve but send these documents directly from the system to partners in the supply chain.