Tech
Why You Should Invest in Logistics Management Software
On average, transportation costs make up around 10% of any product’s total price. This applies to services, goods, and even the amount of money people spend commuting in their private lives. This needs to be held delicately in place, as even a 10% increase in transportation costs reduces trade and commuting by 20%!
With rising fuel prices and an accelerating economic downturn, right now is the perfect time for businesses to cut on logistics spending. Logistics management software can help entrepreneurs achieve that goal. Keep reading this handy guide to find out why logistics management software is a good investment.
Logistics Management Software Reduces Costs
One of the most amazing business practices is outsourcing. Outsourcing a function that isn’t your business’s core function (like logistics) can drastically reduce your fixed monthly costs. This is due to the fact that you forego the costs of integrating that function (staffing costs, equipment, payroll, and admin) into your organization.
Most businesses that outsource logistics nowadays hire a logistics management service. These service fees are roughly the same as an extra salary each month. With logistics management software, however, you can set your business up for the same savings while paying even less money.
Logistics software gives your manager automated tools to do everything themselves. It reduces the burden of the task on a manager, thereby allowing them to attend to other important tasks,
Management Tools Boost Productivity
Logistics is easier for a manager to run when they use one portal for everything. Logistics software keeps track of orders, warehouse conditions, stock, and more.
For example, the software can tell you how much stock you have left in your warehouse. You can simply look at the screen and order what you need. The software can even work out EOQs for you based on current prices.
With logistics software, what used to take hours can take a few minutes. When a manager’s day is freed up like that, they have more time to do training, consult with clients, and respond to problems. In the long run, this increases your business’s capacity for trade.
Management Software Improves Accountability
The unfortunate truth is that modern business occurs in a sea of regulations. Government and private governing bodies set high standards to ensure quality and combat corruption. Though this isn’t a bad thing, it does mean that many businesses are beset with extra reporting and procedures to stay compliant.
Logistics software makes this task much easier. Programs like CartonCloud can link to accounting software for reconciliations and financial statements. When this is automated, there’s no chance for human error and the quality of your reporting gets a boost.
Learn More About Running a Business Today
Automated software for business is a big industry that keeps getting bigger. Nowhere is it more crucial than in logistics.
Logistics management software gives small businesses and sole proprietors access to the same tools as big corporations. A manager can access stock levels from their terminal or tablet. They can also create reports just by asking the program to do it for them.
This means that a manager or owner has more time in their day to spend on business strategy (training and vision casting). It also means that they can handle a higher volume of business without risking clerical errors in their reports. Logistics is only one part of running a business. Running your financing and marketing are just as important. Learn more about all these topics by visiting our business blog today.
Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
