Home » IT in Logistics » Integrated vs Integration: Choosing the Right Logistics Management System

Freight and logistics service providers need to improve their freight management, transport, warehouse and customer relationship management strategies if they wish to remain competitive and grow their business. Technology plays a very crucial role in this and freight and logistics service providers must invest in technology in order to successfully meet their goals. They also have to fulfill the demands of customers by accomplishing operational efficiency and balance it with the return on investments.


In choosing a logistics management system, a company is usually unclear about the right solution for their business needs. On the one hand, you have separate best-in-class solutions for diverse services you offer and on the other, you have an integrated logistics ERP especially designed for your business. You need to dwell on the pros and cons of each system before investing in the technology.


Let’s take the best-in-class solutions for each of your diverse operations like freight, warehouse, transportation and activities such finance and sales and service. Here we are talking about five different systems that will be used to manage each of these diverse business needs, each working in a silo. Since all the activities are interconnected, they put the company in disadvantageous position.


Even if you consider the option of integrating these multiple diverse solutions, the negligible benefits that can be drawn from them can hardly justify the cost and efforts required. Integrating multiple software will not produce the same result as a single fully integrated ERP solution since each of the software is designed differently and not optimized for integration. This means you will not have a seamless flow of data from one system to another which is crucial for efficiency and productivity of the business as a whole. Moreover it will affect the quality and depth of information flow and business intelligence.


In case of a logistics ERP solution especially designed for your business, you get a solution that nearly fulfills all your diverse business needs under a single platform. The advantage here is the design of the system to maximize and optimize data flow from a spread-out of operations. The result is a wealth of information and business intelligence that is crucial for business strategy and growth plans.


During times when it is imperative for freight and logistics service provider to offer a bouquet of services to become a one-stop solution for customers, a logistics ERP becomes invaluable. It gives you the necessary leverage under a single platform. The onus is on you to select the right logistics management system that will best help in your pursuit of business success.

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