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Logistics software

Author: Nelly Chang
by Nelly Chang
Posted: Nov 21, 2019

The field of logistics includes the entirety of all measures relating to the supply and provision of goods. Basically, the logistics includes different areas:

procurement logistics

This aspect concerns the area of??the purchase of goods at the supplier up to the goods receiving warehouse.

production logistics

This refers to the logistical flows of material and goods that occur within an operation. Often, the term intralogistics is also used.

distribution logistics

Distribution logistics, often referred to as sales logistics, looks at the area from manufacturing or from the distribution warehouse to the customer.

Entsorgungslogistik

Disposal logistics deals with the disposal, removal and economic utilization of residues that arise in the process of operational value creation.

Logistics optimization through software

Particularly in a globalized economy, high savings potential and synergy effects can be expected in all these areas of logistics.

Exploiting these potentials is one of the main tasks of logistics planning. Today software solutions are used to optimize logistics planning. In particular, Internet-based (web-based) software is of particular importance here, since an automated data flow allows a logistics software system to adapt continuously to the actual state of the operational processes.

There are comprehensive software systems, the so-called ERP systems (ERP stands for Enterprise Resource Planning) that represent the entire operational process from receipt of order to receipt of payment. Often, these systems are modular, so that only parts of the operational processes are considered, such. B. only merchandise management systems that can later be extended to modules for other operating areas.

For special areas and special requirements, especially in the field of transport logistics, special software is often the better alternative.

There are tasks that require tailor-made solutions (eg for freight forwarders). A software for this then also offers solutions for detailed questions of the transport industry. These are z. B. Vehicle fleet utilization planning, location of vehicles (via GPS), telematics, fleet management, vehicle fleet management / maintenance, route planning, toll cost accounting, container management, shipment tracking, warehouse management, customs clearance, scheduling, forklift control systems, etc.

Which logistics software is suitable for a company is decided by the following aspects:

Type of business

Depending on whether it is a producing company, a forwarding agency or a courier service, the logistics requirements are very different and require different software support.

Type and volume of freight

Although a freight carrier and a courier service transport both goods, they differ considerably in the number of freight orders and their type.

While the courier service has to manage many, mostly smaller consignments, a freight forwarder can be assumed to have a lower number of freight orders, but they can be very different in their nature. For example, general cargo, liquid goods, bulk goods or dangerous goods must be transported, which must be taken into account in the scope of the software.

Amount of acquisition and implementation costs for the software solution

An essential point for the economic efficiency of logistics software are the acquisition costs. In terms of the considered period of use of the logistics system, these must also be fed back to the company through savings. This is usually done by reducing costs through faster turnaround / processing times, lower personnel costs or better utilization of existing operational resources.

It should also be taken into account that in addition to the pure acquisition costs also costs for the introduction of the system z. B. Training costs, etc. may be incurred.

Costs for the ongoing maintenance of the software

During the period of use of a logistics software solution running costs may be incurred. These can be: costs for updating / updating the programs, personnel costs for updating and maintaining the system, costs for later adapting the system to a changed requirement profile.

Support during installation

In order to introduce a system as time and cost saving as possible, attention should be paid to the extent to which support is provided during the installation. After installation, on-site introduction and staff training is usually urgently required, and therefore the scope of the contract should provide sufficient services, without any additional cost.

Support during ongoing operation and occurring problems

In the worst case, the failure of the logistics system can bring the ongoing operation in the short term completely to a standstill. It is important to be able to get help quickly and reliably. Often the telephone support via hotline is not enough. Then it's important to get fast on-site service via field staff. Here, too, the amount of any costs incurred must be observed.

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Author: Nelly Chang

Nelly Chang

Member since: Mar 06, 2018
Published articles: 5

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