Inventory Software Steps That Will Maximize Your Inventory Investment While Reducing Your Expenses

You might not think that your business needs to use inventory software, and maybe this is true if you are in the very beginning stages of running a business.

However, once you were truly up and running you would be doing yourself a terrible disservice if you were not putting in place a good inventory management system that would allow you to maximize the way you were doing things.

When a business first gets started or if it is still quite small the business is going to go through a lot of cash. This is usually the make or break time for a lot of businesses.

If they are unable to use cash the right way then they are not going to survive very long. It is getting tougher and tougher to stay in business if one is not able to have cash on hand when they need it.

Seeing as how you are going to need cash on hand all the time you cannot afford to have cash tied up at all. This is going to happen no matter what you do, but there are some areas where you can prevent such problems.

Inventory would be one of them. Using the right inventory management system is just the first step. Making sure you have the right software in place to run it efficiently is the next step.

Your goal is going to be carrying only as much inventory as needed based on customer demand. You might decide to carry a little bit extra for the purpose of bigger discounts from suppliers or to hedge against fluctuations in customer demand.

In any case the goal is going to be finding that sweet spot. You do not want too much, but you also will not want too little.

When things are done thins way it means you will not have to worry about having cash tied up in inventory. Now why is this important. You want to be able to use this money in other areas of the business.

This is really important for any business that is just getting started and having cash on hand will allow you to be prepared for unexpected things.

Inventory software also allows a business to reduce negative cash flow, because it is going to allow a business to keep down inventories.

At least it will allow a business to keep them right where they need to be. Excess inventories can mean doom for certain business, especially if they are not able to eventually move it.

What inventory software is really all about will surprise you because many businesses fail to understand how logistics software can really benefit their organization long term.

For instance, say you want to set up an inventory management system that is not going to consume a lot of your time right? Well if this is the case you cannot have a system that is overly dependent on other people.

You want to know that any and all information you need to ensure your system is effective can be quickly obtained by you.

Even if you have to rely on others you still want to know what information they will need in order to ensure they bring you back the information you need to input into the software.

Inventory software will help you along in this regard. It is designed to help you answer important questions and make needed changes.

It is made so that you are able to control your inventory the way it needs to be so you keep your costs down. In such a competitive business environment you need this.

The investment you might have to make in logistics software is nothing compared to the long term value you will get by using this program daily.

3 Key Processes Of Transportation Management System

Transportation Management Systems are really meant to increase the ROI and efficiency of your logistics company and has become a mandatory element for an effective logistics management. The transportation management system or TMS helps your make your logistics management more organized and accurate.

Transportation Management software are aimed at bringing down the time, cost and improved profit. If the time and cost taken are decreased, then there is no doubt that your profit would sour high. All you need to do is to learn to manage this amazing tool in the right way. If you are not managing TMS in the proper way then you cannot expect your business to improve.

Here I would like to talk about the 3 key processes of a transport management system, which have an influential role towards the success of your logistics business.

1) Planning and Decision Making
Planning and Decision making are the most essential parts of any successful organization and cannot be ignored at any cost. If the planning and decision making are not up to the mark, the business is sure to suffer. There have been many instances when many companies have vanished due to lack of proper planning and decision.

A transportation management solutions helps you to plan your logistics business effectively and categorize your transport schemes accordingly based on the importance as per user policy. Some of the major things that plays vital role in proper planning and decision making are transport cost, shorter lead-time, fewer stops, flows regrouping coefficient etc.

The TMS systems is also known as logistics management system and helps you to calculate your transportation cost and adjust your routes so as to experience a decrease in the transportation cost. It helps you to find out which routes yields you better profit margin and which are the stops that needs to be avoided without harming your profit ratio.

In the end the report generating facility offered by this vehicle management system helps you to analyze your logistics management in a much better way. You can even change the scheduling and routing of your vehicles for better results. The report helps you to plan better and make decisions based on that.

2) Customer follow-up
TMS helps you to experience a better customer relationship and follow up due to its enhanced features. One of the advanced feature that makes the tool stand out is the GPS vehicle tracking facility, which helps you to track your vehicle with the help of satellites. With this you would be able to inform your customers as where the vehicle is and when their goods would be delivered. It also helps in effective billing, accurate report generation, documentation etc, which makes your customers happy and satisfied.

3) Measurement
A transportation management system offers you a detailed and customized analytics report which would help you to understand your business in a much better way. The report would help you to find out the areas that needs improvements and also help where you stand when compared with the previous months. Certain reports helps you to drill down more deeper so as to get a better assessment regarding your vehicle routing software.

Shipping Management Software Vs Freight Brokerage: Which Is Better?

Many shippers spend nearly as much on shipping as they do on payroll. Consequently, they look for ways to improve freight management with the goal of reducing freight costs. When creating a logistics department would be too expensive, most shippers implement logistics software or hire a freight broker. Also known as shipping management software, logistics software allows shippers to become their own logistics provider by supplying them a comprehensive logistics function. Also known as Third Party Logistics (3PL), freight brokers make carrier arrangements on shippers’ behalf.

Both options can yield solutions that combine quick delivery time, excellent freight care, and affordable rates. But logistics software offers certain advantages that freight brokers often don’t, beginning with low service cost.

Low Service Cost

Not all brokerage options require a significant investment. But the ones that don’t are oriented toward specific logistics services (e.g. cross docking, and tracking and tracing), not comprehensive solutions. For complete management of the shipping process via 3PL, a shipper must use a customer adapter or customer developer, which could cost as much as maintaining a logistics department.

Excellent Customer Service

The number one complaint among 3PL customers is a feeling of distance from the shipping process. In many instances, this is the result of what 3PL is supposed to do: take the logistics function out of a shipper’s hands. But many shippers discover they want more control over shipping than they first believed. Logistics software eliminates distance between the shipper and the shipping process by allowing the former to become its own logistics provider.

Broader Shipping Options

A freight broker will provide more options than you could realize on your own, without the aid of logistics software. But those options could be limited compared to the options offered by logistics software. Some freight brokers use electronic posting systems, where available carriers are matched with available loads, to arrange shipments. While using these systems is a valid strategy, it should not be the only strategy, as it often is. Logistics software empowers shippers to form relationships with carriers who don’t use posting systems.

Control of Shipping

Almost every shipper wants control of the shipping process. But when creating a logistics department would be too expensive, many shippers relinquish the process – and control – to a 3PL provider. Logistics software gives you the same control over shipping as a logistics department would, but a fraction of the cost. If problems arise with the software, or if you need new logistics options, the software provider can resolve the problem or make the necessary changes.

Conclusion

The shipping process involves significant costs, which can be mitigated by implementing a strategic logistical solution for transportation management systems. Although freight brokerage is a valid option, it often lacks basic benefits that shipping management software always provides: low service cost, broad shipping options, and control of the shipping process. Logistics software is often advertised as a solution for small to midsize shippers, but it can also benefit large shippers who wish to save money by not hiring a team of in-house logistics experts.