The key to increasing revenue in your freight and logistics business is the expert management of finances. You need to keep a tight watch over your finances to ensure healthy cash flow and improved ROI. For that you need a sound financial management system. But if the financial system is independent or is a separate software then you will be at a great disadvantage.
Integrating finance with operations using logistics ERP software allows you to gain immense benefits to improve the financial health of your company.
On a broad level, access to financial data allows you to invest in processes that give you the highest returns. You can set and measure performance benchmarks for your various operations. Managers can have more accuracy in predicting financial performance. An accurate financial forecast allows effective planning with no surplus or shortage of resources. Senior management can then have a clearer view and greater degree of control.
To reap optimum benefits, the integration between finance and operations must be two-way. The finance team can use operational information to increase the accuracy and predictability of financial results. Operational managers can utilize financial information to optimize their processes and make effective decisions. Closely working teams from finance and operations can understand the effect of their decisions on each other. This greatly helps optimize overall results for the benefit of the entire organization instead of any specific department.
When you do not have unified finance and operations, the generation of invoices gets delayed. Such delays result in cash flow imbalance. Advanced features like automatic capturing of quotation charges and expenses incurred in operations while preparing invoice, dispatch of outstanding statements daily or weekly to customers as well as online view of invoices enable you to not only improve your own cash flow but also your customer relationship.
An ERP with a strong financial module and tightly integrated with operations enables all receivables and payables to be directly posted. This results in eliminating revenue loss and lowering operational costs. Features such as approval system helps control your finances and reduces chances of errors and fraud.
The integration of finance with operation also enables you to optimize your finances using crucial information from operations to regulate credit limits of customers, improve cash flow and revenue realization. It helps you to control, manage and monitor the performance of individual cost centers/branches. Regulatory compliance can also be simplified with automated tax management features.
Freight forwarding software with capable financial management module builds the foundation for successful business strategies by allowing financial executives to forecast future events, create and assess “what if” scenarios, identify new business opportunities, and analyze the potential for vital market trends and internal events.
Integrated operations and finance thus becomes highly essential for your business to manage and control your finances and improve your ROI.
