Transporting goods globally requires careful management of several types of documentation, coordination with stakeholders, and other minute details. To ease this process, freight forwarding companies act as mediators between the shipper and carrier. For companies to handle these tasks and stay aligned with their business goals is a herculean task. While so far these tasks have been handled manually or through minor efforts on computers, the use of ERP software i.e Enterprise Resource Planning software in freight forwarding goes beyond the regular digitalization.
Recent studies show that the ERP software market size is expected to grow to a whopping $100.7 billion by 2025. This extensive use of ERP solutions is because of factors that influence efficiency, streamline processes, and save costs on several human and machine-based resources. ERP implementation plays an important role in managing processes across all the departments involved in the business. A centralized database, application, and user interface allow seamless integration and communication between all the processes. This makes it easier to oversee the end-to-end management and gain insights into processes for further improvement. Analyzing all the data can highlight places where the business can cut costs or use them to maximize profits.
9 Ways ERP software Benefits Freight Forwarding Companies
Having stated the benefits of ERP implementation for businesses in general, let us now deep-dive into the benefits for freight forwarding companies.
- Process Automation
Supply chain management involves several minor tasks that need to be aligned for the smooth running of the transportation of goods. As freight forwarders handling all the information manually is time taking and leaves room for manual errors. Automating processes with the help of software reduces errors and improves efficiency by faster data processing in a centralized system. Some of the tasks that can be automated in freight forwarding companies are
- Obtaining, analyzing, and sharing shipping schedules
- Accumulating a host of documents for the import and export of goods.
- Assigning tasks for effective management of resources.
- Creation of an Open Communication Channel
A single platform that connects all the stakeholders involved, provides for easy communication within the system. Integrated messaging features of the ERP software help reduce the communication gap that often leads to delays in processes.
- Simplifies Maintenance of Updated Client Records
With all the data available across departments, any information regarding the client, be it the orders in process or billing and invoicing is all available in the database. Such accurate and up-to-date information on the client reduces any hassles that may be incurred in providing the best services.
- Facilitates Better Human Resource Management
Having an ERP solution to streamline people processes reduces the costs involved in hiring managers or implementing multiple software to track time, assign tasks, check productivity, manage employee grievances, generate payrolls, and many more such human resource management tasks.
- Enhances Financial Management
Data integration, analysis, and easy shareability with anyone in the system allows for quicker resolution of financial matters. Whether it is in regards to billing a client, generating invoices, accessing the freight forwarding company’s sales, and expenses, or filing tax compliances, ERP software manages and integrates these complex processes smoothly.
- Improves Turn Around Time
Freight forwarding services are chosen for the ease of transportation of goods the shipper feels. Having all the processes involved in this cross-border transportation streamlined enables freight forwarding companies to improve the turnaround time for their customers. With integrated systems to communicate every detail in time, freight forwarders can provide quotes more quickly, with the best route possible, work to reduce customs clearance time, and get the shipments delivered safely much faster than any other digitized or non-digitized processes.
- Improves Customer satisfaction
A great customer experience for clients or shippers comes after they feel the ease in international transport of goods. Not just providing the best quotes, but keeping the clients updated at each stage of the transportation contributes to creating transparency in business operations, thereby improving the trust factor and enhancing a positive customer experience. A quicker turnaround time is a bonus for the end customers too and results in improved customer satisfaction levels.
- Reduce IT expenses
As a small freight forwarder, ERP implementation in the company might seem like a costly affair. Although having on-site ERP software is an option that requires IT support and hence greater resources, cloud-based ERP solutions do not comply with these requirements. Setting up cloud-based software for your company is less expensive & enables handling all the tasks at any time from anywhere.
4 Tips To Choose The Best ERP software For Freight Forwarding Companies
Now that we have discussed the benefits of ERP software, let us also help you with a few features you must look for when deciding on the best resource management software for your company. Considering the functionality features look for:
- End-to-end Integration of the entire process
- Clear visibility throughout the documentation process
- Efficient financial management for clients as well as cost efficiency for the business
- Analytical insights for your business
- Customer support
Considering other factors, look for an ERP solution that is secure, and developed by trustworthy, and experienced industry professionals.
To summarize, the ERP software used by freight forwarding companies should be its best back-office employee. A system that is trustworthy, secure, and highly efficient in terms of the money and time spent on it. One such ERP solution is Cargoes Runner, which provides for smooth execution of freight forwarding processes through a single platform and helps gain deep insights to improve business operations.
Integrating such technology with your business is a one-time investment to reap long-term benefits. With the changing times, it is time for the freight forwarding industry to witness a revolution and contribute to improved logistics services throughout the world.
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