Inventory Software Will Allow You To Maximize Costumer Service – Follow These Steps To For Success

The last thing any business wants to do is take on any expensive they feel they are not going to need. This is one of the primary reasons why a lot of business, especially those that are just starting or are smaller, will decide to go without an effective inventory management system that is implemented by means of inventory software.

These businesses will try to do things the hard way. The hard way equals a business having to invest more time, which of course is going to mean more money.

In order to convince you of how beneficial it would be for you business to have inventory software, we need to discuss the overall value it is going to provide you with moving forward.

The one aspect we can focus on is the lifeblood of your business, and that is going to be making sure your customers are satisfied. Now you might have a good product or products.

You might have friendly staff who answer the problems of customers. You might run a pretty efficient business. However, without inventory software you are not doing all you can to make sure you are maximizing customer service.

Why do you think this is? Well, without the right tools at your disposal to make inventory management more efficient you are going to run into problems such as inaccurate customer forecasts.

This means you are going to underestimate or overestimate the amount of software you need. How much do you believe this is going to cost you in the long run? Then you have issues such as various changes that can happen to original customer orders.

When this happens it can throw everything into a tail spin. Let’s not forget the overall lack of account management your business might have.

All of these things combined make for poor customer service performance in regards to on time delivery, not suppliers and not purchasing. What do you believe is going to happen because of this?

You are likely going to end up carrying a lot of excess inventory or not enough. This is going to lead to inventory write offs.

You are going to end up having higher product costs, which is going to mean lower profit margins for you. Inventory software is going to enable you to solve all of these problems without hassle.

There are many reasons why inventory software will help you make more profits at the end of the day. For instance, right now you probably have a good idea of how many sales you can expect to get for a given product at a given time of the year.

You might have taken the time to put this information together and it has worked out well for you. However, without inventory software there is a chance you are opening yourself up to a huge forecast error.

You want the individual product sales forecast for your business to be as accurate as possible. The more accurate the product sales forecasting is the smaller the forecast error will be.

This means you are not going to need that much inventory to make sure that you are able to maintain a specific level of costumer service. There are other benefits as well.

Your most likely use machines in your business if you carry a lot of inventory. Not carrying excess inventory means you will not have to worry about over using machines you might have when it comes to producing products.

You will not build products before they are needed, and as a result you are not going to have to commit capacity of your machines too early.

Inventory software which is another term for logistics software, is a tool no business can afford to be without if they want to run a sound inventory management program.

Logistics & Transportation Solutions Moving Into the 21st Century

Logistics solutions are steadily making improvements in their technology and abilities to enhance the businesses prospective for many companies. They are already certified with the small parcel carriers such as FedEx, UPS, Canpar, USPS, BAX and others. They are creating specialties in the area of less than truckload shipping by using integration. They are hiring professionals in the areas of software, computer engineering, electrical engineering, and former LTL carriers.

Companies are turning their attention to logistics software such as RateLinx LTL Analysis. This software provides businesses with a greater level of market visibility at a previously unrealized level of granularity. It is providing them with answers and giving them plans that are specific to the shipping characteristics of their company. It will help companies execute their plans for improvements and give them outstanding results in the area of LTL pricing.

The logistics software is reducing and eliminating the need to outsource. They are realizing market discounts on a continuous basis and the ability to be setup with LTL carriers that they personally choose and have developed a strong trustworthy relationship with. At the same time they are ending their reliance on the seemingly never ending software maintenance costs. They are, in essence, taking back the control and making decisions regarding their freight on their own.

With the new technologies that are becoming so popular, companies are realizing savings that they have been looking for some time now. Many of the companies are saving, at the minimum, ten percent in only the first year of using the new software.

When a company decides to move their business to the next level, there are four simple steps that are necessary to get them started. They need to have an analysis run on their business needs. Once the analysis is complete they will begin putting the pieces together. They will determine what tools are needed, which specific carriers are desired by the company, what integration needs are necessary to get the project moving, and what auditing and payment needs are necessary.

By taking business to the next level and taking advantage of the state of the art technologies that are available, businesses are making their freight management and pricing extremely simple. Because the plan for improvements is made specific to a particular company, the cost reduction of the LTL costs will be at ten percent before they know it. They have trusted advisors for all of their LTL, TL, small parcel, international, ocean, and hazardous needs.

The process of moving to this new system will be very smooth and integrated. They will ensure that overpaying for freight is something from the past and that the savings will continue as long as the new technologies are being used.

Transportation Management System Logistics: Evaluating Your Options

Research shows that a freight transportation management system can cut the cost of shipping by up to twenty-five percent in the first year, but for many shippers, implementing a system for managing freight transportation can impose financial hardships. Traditionally, such experts perform transportation management – an expense most small and midsize businesses can ill afford (hiring these experts can bring a six-figure payroll increase).

How can shippers manage freight distribution without hiring an expensive team of experts?

Traditionally, the answer has been to outsource to Third Party Logistics (3PL) providers-entities that set shipping arrangements between shippers and carriers. In theory, 3PL is a beneficial arrangement for shippers that do not staff experts because the logistics function is outsourced, and the need to hire experts is eliminated. However, for companies that need or prefer more control of the shipping process, using a 3PL provider can be frustrating.

When they opt for 3PL, shippers relinquish a degree of control over the shipping process. Depending on the quality of the 3PL provider’s logistics resources, the price of the relinquishment can be steep. Good 3PL providers leverage a variety of resources to identify the best carrier arrangements, but many 3PL providers use limited resources -a fact that their customers remain unaware of.

If you use a 3PL provider whose resources are limited, your ability to negotiate the best carrier arrangements is also limited.

Replacing 3PL

If your business needs to save money on transportation management, 3PL is a fair option, but it is not as affordable or empowering as logistics software-a class of applications that perform the logistical calculations traditionally performed by experts. By replacing 3PL with a program that provides this function for a Transportation Management System (TMS), you can resume control of the shipping process and reduce your costs in two ways:

  • By paying less for the program than you pay for 3PL
  • By negotiating better carrier arrangements via expanded shipping options

Research shows that TMS software can reduce the cost of freight transport by ten percent in the first year. For many businesses, such a cost savings can be a financial life raft, but receiving it requires a decisive step in a new direction-implementing a TMS application instead of renewing a 3PL contract. When they learn how painless the changeover can be, most shippers are ready to make the switch.

Easy Implementation

TMS applications are designed to support the existing shipping process. Before supplying an application, the provider analyzes a business’s shipping process in depth, creating a program that addresses each need. As the needs change, new options can be added to the existing options, creating a program that evolves with the shipping process.

TMS applications are available on a web-based model or an in-house model. To simplify the implementation process, acquire remote system access, and preserve investment capital, most businesses opt for the former. To learn how TMS software can improve the economy and efficiency of your business’s transportation management system, contact a provider of logistics software today.