Imagine a scenario where the shipment has been carted to the CFS/Port and it is found that the shipping bill has not been filed yet. In another scenario the finance department is unable to bill for services provided on time or misses out on billing certain charges because of lack of sufficient information. There are several such likely scenarios which can throw out of gear, the operations of a logistic service provider (LSP). Not only will the LSP face severe losses on account of such incidents, he may also risk losing valuable clients.
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| Logistics services involves planning, implementing, and controlling the efficient, effective flow and storage of goods, services and related information from their point of origin to point of consumption. It comprises of services or operations like transport, warehousing, freight forwarding, customs clearing etc. which are interconnected. Although computerization of these processes has been carried out to a large extent, most of these systems are fragmented with little or no communication between them. This lack of interconnectivity can be attributed to the technology limitations that prevailed. However today, with the advancement in technology and the internet, it has become possible to have state-of-art systems, which can help integrate the entire enterprise under a single system. |
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Need for Integration |
Researches have shown that technology is a very powerful factor in enabling businesses to become more efficient. Any business requires state-of-the-art applications that allow them to effectively plan, manage and control their operations and increase operational efficiency, reducing operating costs. In the case of logistics companies, they have to also improve the co-ordination between their various operations and ensure its cohesive functioning. The key to achieve cohesiveness and co-ordination is the integration of all operations and functions under one integrated system.
In the absence of integration it would become difficult to control, co-ordinate and execute the logistics operations effectively. Therefore to achieve greater efficiency and control it is vital for the logistics companies to combine their operations under one unified system. Not only does an LSP need to integrate his various functions, it is necessary to bring the entire enterprise under a single umbrella, to ensure profitable business growth. Financial accounts if not integrated with the operations can lead to revenue leakages, in terms of unrecovered expenses or unbilled shipments.
Advantage of Integration |
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With the advancement of technology it is now possible for an LSP to integrate his various operations and financial accounts in to a single system. An integrated system acts as a catalyst for the growth of the business, improving its overall performance capabilities.
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Functions and Operations
Integration the various functions and operations ensures the systematic and seamless flow of information from one operation to another. Data can be carried from warehousing to transportation, transportation to customs clearing and freight forwarding and so on. This helps in avoiding costly errors and duplication of work. Since the various systems will be using a unified data repository, there is a complete internal visibility. With the real time information available at its finger tips, the management can control the operations with ease.
With integration of the operations the service provider no longer needs to worry about proceeding with the next stage as the information about the completion of the previous stage is available. Alerts can also be generated on exceptions and non completion of specific tasks, thus ensuring that the work is not delayed.
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| Financial Accounts |
The integration of financial accounts with the operations is one of the most crucial aspects in the logistics segment. As expenses are incurred at every step of the various operations, it is important to record these expenses as and when they occur. An advanced system not only integrates the financial accounts with the operations but also captures all the charges and ensures that all expenses are accounted for.
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| If the service provider is unable to bill the client soon after the completion of the shipment it could delay the payment from client consequently blocking up substantial working capital. When financial accounting is integrated with the operations the charges quoted to the client and the actual expenses incurred for the shipment flow in to the financial accounts, thus preventing revenue leakages and maintaining the cash flow. |
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There are several applications available today which integrate the functions of a LSP, Softlink’s Logi-Sys is one such system. Softlink’s Logi-Sys is web based modular, customizable system with Freight Forwarding, PO Management, Customer Service and Accounting modules. Modules like Container Management (Inventory), Fleet Management will also be a part of Logi-Sys.
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Softlink’s Logi-Sys, an enterprise level application, integrates the various functions of logistics company right from Inquiry, Quotation, Booking and Shipment to Billing. The system also tightly integrates with optional financial accounting module or can export data to a third party accounting software. Logi-Sys manages Air, Sea, Import, Export, LCL, FCL, Factory Stuffing, Dock Stuffing etc. shipments. In addition of providing SMS, Email alerts and Daily Status Report, It can integrate with corporate website to provide online tracking to the customers. It has EDI capabilities to exchange data with business partners including Carriers (Via INTTRA), Shippers, Consignees etc.
Integrating the disparate business processes is a pivotal strategy shift in global logistics practices today. Logistics companies are shifting their focus from small cost-savings to the larger picture that encompasses functionality, integration, risk reduction and a compliance-oriented approach that drives innovation and business networking through automation and real-time access to information.
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