How Logistics Management Systems Work

Linda James, Logistics Tech Outlook | Friday, March 18, 2022

Digitizing logistics functions using LMS streamlines all logistics operations.

FREMONT, CA: Logistics, for many businesses, is still noticeably slow to change. While retail face disruption after disruption, 50 percent of trucks travel empty on their return journey and warehouses are sometimes overfilled or standing idle. Digitalization will enable warehousing and transportation operations to elevate customer experience, offer more value to partners, and create an effective ecosystem of supply chain providers: manufacturers, carriers, and freight forwarders. Here is how logistics management systems (or LMSs) can bring value by automating operations and using data to make informed decisions.

In the digital world, to handle logistics processes in both ways, firms use logistics management systems – a combination of software tools that streamline all processes from making an order and delivering it to customers. Introducing and integrating LMS in the organization can be done differently. Engaging a third-party logistics (3PL) firm that will run any logistics operations is a method. Using a 3PL gives firms a quick implementation period without training the employees on new processes, devices and software.

Getting and processing an order online usually includes creating and editing inventory, handling customer service, accepting payments, checking for fraud, and managing documentation between manufacturers, suppliers, warehousing, and transportation firms. To handle orders effectively and avoid double managing errors, orders, inventory, supplier, and customer data should be synchronized in a system. Order management software receives orders from all sales channels and monitors them from the moment they’re placed until they confirm delivery. This is the main connectivity hub where all data about the order is displayed, including routes, location, warehouse connectivity, inventory, and integration with accounting to create invoices and accept payments.

Inventory management is a crucial part of the supply chain responsible for managing and documenting the amount of product for sale. Receiving, storing, and tracking inventory, while handling rapid and constant changes, needs highly accurate product information management. So, automating from spreadsheets to inventory management systems (IMS) offers the needed clarity centralizing the data in a location through an inventory management system.

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