In the freight and logistics business, the company’s ability to expertly manage its finances is a strong growth influencer. A watchful eye on financial flows can ensure healthy cash flow and improve ROI. A logistics ERP that integrates finance with operations allows you to gain immense benefits to improve both operations and finance.
A logistics ERP offers access to relevant financial information that allows operations to fine tune processes to make them more cost-effective. Management can then set and measure performance benchmarks for various operations departments. Financial managers can predict financial performance more accurately which allows effective planning with no surplus or shortage of resources. The senior management benefits from clearer view and greater degree of control over the business.
The benefit of such a solution is the integration between finance and operations which allows two-way interchange of information. Finance gets access to operational information which can facilitate greater accuracy and predictability of financial results while operations can utilize financial information to optimize processes and make effective decisions. There is increased transparency that enables both operations and finance departments to work closely with a clear understanding of the effect of their decisions on each other.
Most delays occur when there are gaps in communication and connectivity between finance and operations leading to unnecessary delays in generating invoices, increase in expenses and other things that affect your finances. Advanced features like automatic dispatch of outstanding statements daily or weekly to customers as well as online view of invoices enables freight forwarders not only to improve their customer relationship but also their own cash flows while cutting down work burden of employees considerably.
Another advantage of tightly integrated operational and financial modules of a logistics ERP is that all provisional and final receivables and payables can be directly posted. This means there is zero revenue leakage and reduction in operational costs. With some useful features like approval system you can manage finances much more accurately and reduce chances of errors and financial irregularities. Enterprise-wide optimization of finance becomes possible which includes regulation of credit limits of customers, and improvement of cash flow and revenue realization.
An end-to-end logistics software can help you control, manage and monitor the performance of individual cost centers/branches. Regulatory compliance can also be simplified with automated tax management features. It facilitates better and transparent decisions and strategizing by the management which helps business profitability and productivity and boosts customer satisfaction. Integration of financial accounting with sales and operations also empowers the managers to make informed decisions.
All things considered, integrated finance and operations can be highly advantageous for freight and logistics companies as it helps them focus instead on business expansion and diversification.
