How logistics management software and technology will change business in 2021.

Without logistics management software, Pfizer will not become one of the world’s largest suppliers of sterile injectable drugs in 2021. Nor will they be able to store, transport, and distribute the COVID-19 vaccine to multiple countries while maintaining ultra-low temperatures. Temperature monitoring, delivery route optimization, cold storage management, tracking vaccines in transit, and controlling distribution prove that the logistics and supply chain sector will be at the forefront of technological upheaval in 2021. In addition, governments of various countries are taking steps to accelerate the distribution of vaccines to the public; shoppers are increasingly moving to online shopping – 2021 will see more and more adoption of logistics management software. 

Research and Markets report that the growing use of IoT and new technologies across industries will accelerate the adoption of connected logistics. The global related logistics market is projected to grow at a CAGR of 17.5% during 2021 – 2026. 

Consequently, logistics will become better and faster, changing how we manage materials, goods, freight, sales orders, inventory, and production.

 Efficiency and speed become crucial factors, and logistics must adopt a new approach to cope with increasing demand and process complexity. The industry needs a viable solution that manages the flow of things so that the right product reaches the customer on time.  

Implementing logistics software streamlines operations and eliminates process complexity. Organizations invested in logistics management software have seen good results with noticeable improvements in processes, procedures, and delivery.

This article will try to explain everything you need to know about logistics management software, including:

  • What is logistics management software?
  • Challenges in logistics management
  • The pros of having logistics software
  • The 2021 trend that’s changing logistics management
  • Choosing the proper logistics management software
  • Checklist of essential logistics management software requirements
  • How logistics software improves efficiency
  • The future of supply chains

What is logistics management?

Logistics involves the movement of goods from their origin to the area of consumption, usually common customers or businesses. Therefore, the selection of suppliers means of transportation, routes, and delivery methods form an essential part of logistics operations.

Logistics management is the supply chain that uses planning and implementation to store and deliver goods and services to customers. It coordinates several critical activities in the supply chain, from product development to commercialization.

Usually, a logistics management system encompasses the following modules:

  • warehouse management
  • fleet management
  • order processing
  • inventory control
  • Inbound and outbound transportation management
  • Management of third-party logistics providers
  • Supply and demand planning

Logistics management includes several functions, such as production planning, sourcing, purchasing, packaging, and shipping. It also includes finding the proper means to deliver goods and services to the end-user. Inbound and outbound flows are vital in logistics management.

Inbound logistics is the linear flow of raw materials from suppliers to the warehouse and then to production.

Moving products from stock to customers refers to outbound logistics. 

An example of inbound and outbound logistics in play is an electronic goods manufacturer that requires several types of raw materials in components, nuts, bolts, cables, castings, packaging boxes, etc., to create products.

Problems in logistics management

Logistics is subject to some problems that arise mainly due to simple human error or other factors. For example, weak decisions usually lead to delays in shipping or delivery, resulting in customer dissatisfaction. In addition, another problem logistics usually faces is the safe transportation of goods. Goods can be damaged or ruined if they are not appropriately handled during transport.

Customer demands have also become higher as they want more transparency in the delivery process. In addition, logistics and supply chains are facing the unresolved issue of cost control. Rising fuel surcharges combined with steep increases in energy, freight, and labor rates put additional pressure on logistics service providers.

Effective risk management and management of supplier and partner relationships are also vital. Therefore, a robust solution that covers all of these separate issues in logistics becomes a necessity. Logistics management software (LMS) can streamline logistics operations and direct the logistics provider or enterprise to address them appropriately.

What is logistics management software?

Logistics software has become broader in scope and functionality to deal with many operations and processes. It shares features with supply chain management software (SCMS), which contains tools to help deal with procedures, processes, and suppliers. The functionality of logistics management software extends to areas such as:

  • handling customer inquiries
  • purchase order processing
  • inventory management
  • Supplier management
  • Sales and distribution

Logistics management software eliminates all traditional approaches, such as paperwork and spreadsheets, to simplify management. It comes in three variants: warehouse management systems, enterprise resource planning systems, and integrated supply chain management suites.

Companies with their logistics or supply chain division and third-party logistics providers use any of these versions according to their requirements to effectively manage logistics operations and supply chains.

The benefits of using logistics software

Choosing a logistics solution is one step toward simplifying the entire cycle of logistics and supply chain operations. Effectively managing each process from procurement to delivery requires a customized logistics management solution that can meet each supplier’s requirements. For example, an organization with no logistics department needs a software management tool to wrap around and improve its existing methodology.

By partnering with a vendor specializing in software development, companies can implement logistics management software tailored to their requirements. Pioneers in custom software development, such as Fingent, can help companies from wholesalers to distributors to e-commerce with the benefits of customized logistics solutions. Contact us to lead your operations quickly and efficiently.