3 Approaches for SMEs to Overtake Competition Using Freight ERP
Updated: Dec 27, 2022
Small to medium-sized freight forwarders may assume that more established players have "superpowers" and are unstoppable. And this illusion makes them look for innovative ways to level up. One solution many forwarders are turning to is implementing a freight enterprise resource planning (ERP) system. And results assert that fact. About 82% of the businesses that used ERP reported achieving ROI on schedule, says The Parker Initiative, 2021.
However, implementing an ERP system is not without its challenges. Many forwarders are hesitant to invest due to the time, money, and resources required to implement and maintain such a system.
Will an ERP help to reduce my operations costs?
Can my operations become efficient?
Are there ways I can better serve my customers?
If you're a freight forwarder and this is your dilemma too, the following space will help clear your doubts.
Robust, agile processes to manage the highs and lows
By automating and optimizing key processes, such as quoting, booking, and tracking, a freight ERP can help forwarders save time, reduce errors, and improve the overall quality of their service. With freight management software, you can spot areas slowing your job processing time so you can unblock your growth. Robust and agile processes allow your company to adapt to changing customer needs and market conditions. You also gain the ability to manage high volumes and slack periods when your competitors struggle to add resources or reduce costs.
Reduced cost of running the business
The investment of an ERP helps lower the expense of operating your freight business. Freight forwarding typically involves coordination with several different parties, including the shipper, the consignee, the carrier, customs brokers, cargo insurance providers, and other service providers involved in the transportation of the goods. Having multiple software to manage the many stakeholders only makes coordination less transparent, and sometimes even more expensive. By providing a central, integrated platform for managing all aspects of the business, a freight ERP system can help eliminate the need for multiple, disconnected systems and reduce the costs associated with managing and maintaining multiple systems. If you implement Logi-Sys, with a single ERP, you get:
integrated billing and invoice
track and trace shipments
managing GST and other tax compliance
organized paperless documentation
Happy customers help you expand
Importers and exporters trust forwarders for the timely and intact receipt and delivery of their cargo. With technology, you can win the trust of your importers and exporters by providing them:
with no surprise or hidden fees
timely communication of milestone updates(or delays)
facility for online shipment booking
faster response time on quotations or other support queries
Benefit from reports telling the customers that give you the most business. By limiting and increasing the customer's credit limit, you can improve your cash flow. Loyal and satisfied customers will return to you, recommend you in their network are less likely to switch to your competitor, helping you gain a larger market.
Freight ERP helps improve shipment processing time, and monitor and manage all processes centrally. This reduces your overhead and allows you to focus purely on growing your business. It's important to do your research and evaluate the different options available on the market.
Look for a system that offers features and functionality that align with your business needs and goals. To understand how Logi-Sys can help your company grow, consult with our team today.