Want to optimize your supply chain? Or maybe to monitor your warehouse more effectively? Logistic software can do all this. All you need is to entrust all the work related to warehousing, transportation, and logistics.
In this article, we will look at everything related to logistic management software. We will also discuss whether you need it and how it is better than regular employees.
You will learn about future trends in logistics management, how to choose the right software, and review the best systems currently available. Read on to learn more interesting facts about working with them!
What are logistics management systems?
Logistics management systems monitor transportation, warehouses, inventory, and deliveries for you. Simply put, they optimize and automate all work related to cargo.
Their main task is to make logistics faster, cheaper, and more reliable. For example, they help build optimal routes, reducing delivery times and fuel consumption. In warehouses, logistics systems independently determine the most efficient storage locations for goods.
They optimize the order picking process and fully automate receiving and shipping procedures using modern identification technologies. In the area of inventory management, these platforms demonstrate high accuracy in demand forecasting and provide timely warnings of potential problems with stock levels.
Large companies should use powerful platforms such as SAP (Systems, Applications & Products) or Oracle SCM (Supply Chain Management). For medium-sized businesses, 1C or simpler TMS (transportation management system) / WMS (warehouse management system) solutions are perfectly adequate.
Modern logistics management systems integrate with GPS (global positioning system), ERP (enterprise resource planning), and analytical tools, providing complete control over cargo flows.
Modern LMSs are deeply integrated with corporate ERP systems, financial services, electronic trading platforms, and even customs platforms. According to industry research, their implementation leads to a tangible reduction in logistics costs, a manifold increase in order processing speed, and virtually no errors.
Why do you need logistics management
Effective logistics management directly affects the cost of goods. The better organized the transportation and storage are, the cheaper the delivery is for businesses and customers. Logistics also determines the speed of order fulfillment. Customers will be satisfied with prompt service, which in turn will have a positive impact on your reputation.
Customers want to receive goods within a short period, and firms that fail to meet demand lose customers. Effective inventory control eliminates cases of either having no stock or too much stock. This reduces losses from excess inventory or lost profits.
Good transport management systems & logistics reduce transport and warehouse downtime, increasing overall business efficiency. The system determines the optimal transport route, considering fuel consumption and travel time. Transparency in cargo made it less prone to losses, theft, or destruction. The new technologies, like GPS and automatic accounting systems, render processes transparent and easily manageable.
Logistics links together the suppliers, manufacturers, and stores in one chain. In case just one of the links in the chain fails, delays, and extra expenses are incurred. The global economy is characterized by the fact that stable logistics enable companies to enter a new market. In its absence, international deliveries and the stable functioning of large networks could not be performed.
After all, competent logistics management is a precondition for business competitiveness. Interesting fact: 43% of companies said that integration into the ecosystem would help them reduce costs, and 33% said it would increase revenue and profitability.
Features of logistics software
Modern logistics software simplifies supply chain management by automating routine operations, minimizing human error and mistakes. The main features of such systems can be illustrated as follows:
| Feature | Benefits for business |
| Routing automation | Reduced fuel costs and delivery times |
| Real-time inventory management | Preventing surpluses and shortages of goods |
| Integration with GPS and telematics | Online cargo tracking |
| Analytics and forecasting | Optimal planning of purchases and sales |
| Multi-platform access | Manage processes from any device |
Next-generation software solutions are distinguished by their exceptional architectural flexibility and unprecedented scalability. They are equally effective at handling small local shipments and complex international supply chains with thousands of transactions every day. Modern platforms offer:
- Integration with CRM (Customer Relationship Management), ERP, and accounting systems;
- Support for mobile applications for field work;
- Customization options for industry requirements;
- Built-in business analytics tools.
Such solutions transform logistics from a costly department into a strategic asset for the company, providing competitive strength in the market.
The best transport management systems
Effective logistics management and transport require special software systems that help companies optimize routes, control costs, and improve the quality of transportation. The best transport management systems for logistics include:
- SAP Transportation Management — a comprehensive solution for large businesses with the ability to plan and execute shipments.
- Oracle Transportation Management — a system with powerful analytical tools and support for multimodal transportation.
- MercuryGate TMS — a cloud platform with a focus on automation and artificial intelligence.
- 3T Logistics & Transport — a specialized solution for the European market with route optimization features.
SAP TM (Transportation Management) is ideally suited for international companies with extensive vehicle stocks, providing robust multimodal transport tools.
The high level of analytics and easy integration with other business systems distinguish the Oracle Transportation Management. The latest news is the implementation of machine learning algorithms for transport load forecasting.
MercuryGate offers innovative, cloud-based services that integrate artificial intelligence solutions, automatically optimizing routes in real-time. Their system can process as many as 50,000 transport orders in a minute.
The European market is the specialty of 3T Logistics, which offers special features to comply with the complex local regulations, such as automatic calculation of environmental fees and restrictions.
Pros of software solutions for logistics
Everything has its strengths, and logistics software is no exception. If you are still unsure about how exactly the system simplifies tasks after implementation, let’s take a look at each one:
- document flow automation;
- delivery route optimization;
- accurate inventory control;
- online cargo monitoring
- integration with business systems;
- demand forecasting;
- management mobility.
Modern transport management systems & logistics replace paper document flow with digital solutions, which speeds up all processes several times over. Optimal routes are calculated automatically and save fuel, minimizing delivery time. The location of every shipment is monitored in real-time, which is required in case of transporting perishable goods or urgent orders.
Smart forecasting algorithms can assist you in planning the purchases precisely so that you do not overfill the warehouses and, vice versa, run out of the popular products. Enterprise accounting system integration removes redundant data and human error in the transfer of data. The use of cloud technologies enables you to run logistics operations anywhere in the global environment.
Adaptable environments enable the system to be customized to the peculiarities of any company, be it a small online store or a global retail chain. There are modern solutions to implement mobile applications among drivers and warehouse workers, which accelerate order processing. Analytical modules can pinpoint areas of bottlenecks in supply chains and make informed decisions in management.
These figures reflect the impacts of automation and process streamlining on the efficiency of work. The implementation of such systems usually pays for itself in 6-12 months by reducing logistics costs and increasing inventory turnover.
Modern and traditional logistics software
While many companies still use traditional systems, modern solutions offer fundamentally new opportunities for supply chain management.
| Characteristics | Traditional software | Modern software |
| Technological base | Local servers | Cloud solutions |
| Automation | Partial | Full of AI elements |
| Access to data | With delay | In real time |
| Scalability | Limited | Flexible architecture |
| Analytics | Static reports | Predictive analytics |
The distinction between old and new solutions is particularly evident in the decision-making pace. Contemporary logistics management systems allow access to the information of all the players of the supply chain, from raw material suppliers to final customers, promptly.
They are also cloud-based and API-integrated, enabling the integration of data between ERP, WMS, TMS, and other systems into a single analytical dashboard. This enables you to:
- locate real-time bottlenecks;
- automatically reroute in the event of force majeure;
- forecast delays in advance.
The traditional systems that are still applicable on local servers and manual input of data are:
- firms that have easy and stable logistics plans;
- the operations where 24-48 hours of delays of data are acceptable;
- projects with a small budget on digitalization.
The determining factor is the present needs and the development strategy. When looking at an example of a retail chain, considering the intent to quadruple the turnover within 3 years, such a company should adopt scalable cloud solutions, even at the initial stage.
In the meantime, an established producer whose deliveries are predictable can modernize dated systems over time. This transition will require investment in finance and process restructuring. There are good examples demonstrating that the effect is maximized when technology is complemented by employee retraining and KPI (key performance indicator) optimization.
Choosing the right logistics software
To select an appropriate logistics software, it is necessary to analyze the current and future business activities. In the first phase, it is reasonable to define your requirements: transport volumes, number of warehouses, turnover specifics, and integration with other systems of the company.
Small businesses with minimal cargo flows require only basic functionality, including simple inventory tracking, routing, and invoicing. But even here, one can consider the possibility of scaling.
Medium-sized businesses are already required to have logistics software solutions that include high-end analytics, CRM interventions, and multiple warehouses accounting. Particular consideration should be given to the mobility of solutions, the possibility of drivers and managers operating with the system using smartphones.
The TMS, WMS, and IMS (inventory management) platforms are needed in large enterprises with a long supply chain since a single digital environment must cover them. It will be equipped with such essentials as predictive analytics, artificial intelligence to optimize the routes, and the ability to support multimodal transportation. In selecting, note:
- support for domestic and international standards;
- availability of APIs for integration;
- quality of technical support;
- customization options for industry-specific features.
A properly selected system pays for itself in 6-18 months by reducing logistics costs and increasing inventory turnover.
Trends of logistics management in the future
Artificial intelligence will be used more and more in future logistics to predict the demand and optimize waypoints. Large distribution centers will be automated with robots in their warehouses.
The blockchain technologies will make supply chains transparent and secure. The development of “green” logistics will require the best transport management systems for logistics to support electric vehicles and alternative fuels. Last-mile delivery in cities will start using drones and autonomous vehicles.
The IoT (Internet of Things) will enable real-time tracking of the location and condition of cargo. Cloud platforms will become the basis for logistics ecosystems that unite all market participants. Hybrid “physical store + online” models will require new approaches to inventory management. Personalized logistics will take into account the individual preferences of each customer.
The main factor will be the speed with which companies adapt to change — those who innovate faster will gain a competitive advantage. However, technology will not completely replace the human factor, but will expand the capabilities of specialists. The main trend is the creation of intelligent, sustainable, and customer-oriented logistics systems.
Improving logistics operations
By adopting the best transport management systems for logistics, businesses will be in a position to realize a new level of efficiency through automated processes. These systems will make the supply chain transparent, lower expenses, and enhance the customer experience.
Digital transformation of logistics can only be successful with the appropriate combination of technology, talent, and flexible business processes. Fancy making yourself one? Call us, and we will inform you of what to do. The primary outcome will be a sustainable and competitive logistics system prepared to meet future challenges.
Faq
It is an online platform that automates the supply chain process, including transportation, warehousing, and inventory control, to ensure optimum efficiency.
Saves money and increases delivery precision, gives real-time tracking, and automates operations.
The logistics software is single task-oriented (e.g., route planning), but logistics management systems combine all the operations of the supply chain.
Priority innovations include artificial intelligence-based analytics, Internet of Things tracking, blockchain security, and environmentally friendly logistics solutions.
The average implementation time is 3-6 months, but cloud solutions are implemented more rapidly based on the complexity of the system and the size of the business.
The majority of contemporary solutions provide an API connection to the most popular ERP, CRM, and accounting systems to facilitate the flow of information.
ROI is typically realized in 6-18 months by businesses with lower fuel costs, lower labor costs, and better inventory turnover.
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