The logistics industry is sometimes faulted for keeping a distance from technology; this is not without reason. Logistics companies generate a large amount of data that needs to be maintained and updated periodically. Many get bogged down by the sheer burden of everyday work that they hardly have time to think beyond the problems and look for solutions.
Then there are companies that develop cold feet when it comes to adopting technology. The fear of change stops them from switching to a new, advanced logistics ERP solution.
There is also a general misconception among logistics companies that technology is expensive. But affordable technology solutions in the form of logistics ERP is widely available. The use of technology in logistics increases cost efficiency and speed, and also offers companies the tools to deliver quality customer service.
The freight business still follows extensive manual processes which means information cannot be easily shared and reused. But with a logistics ERP, data may be shared across the organization and beyond, with other stakeholders. The micro-level data aids in analysis and planning of operations while the data available on a macro-level enables strategic decision-making.
Optimization of logistics operations can become a nightmare without technology support. The amount of data logistics companies generates and the complexity of the business makes technology a necessary tool to optimize the process. Moreover optimization makes the business more cost-effective.
Chaotic processes in the finance department are common among logistics companies that do not use a logistics ERP. Everything from invoicing, payment follow-up, credit control and cash flow management may be seriously affected, leading to loss of revenue. A logistics ERP integrates finance with operations giving complete financial control. Major benefits include on time and correct invoicing, prompt follow-up, cash-flow and credit management which in turn help plug revenue leaks and enhance profitability.
Logistics companies unwilling to invest in technology are often too concerned with short-term costs of implementation or simply fear changing the status quo. No doubt change is hard but the immediate and long-term benefits of using logistics technology more than make up for the short-term costs. Plus there is the fast ROI and cost-effective business solutions that one can look forward to.
