To connect demand with supply is an activity that logistics service providers manage daily. We’ve all heard that LSPs must deliver the right product to the right customers and at the right time in the appropriate condition. But how do efficient companies always get it right and look equipped to take on more volumes with ease? Along with well-defined processes, such companies use technology to complement their services.
Sure enough, your company can get there too. Implementing recognized logistics software helps unlock your organization’s hidden potential. Companies often get overwhelmed by the plethora of technological solutions available in the market. Before we help you decide the best way to resolve this dilemma, let’s understand your options.
What are the choices that you have?
Technology is an enabler to enhance your capabilities and increase efficiency. To support your ambitions and growth plans, you could build a custom system from scratch or use an existing solution off-the-shelf. Both approaches differ in set-up, maintenance, and output.
A custom system takes into account your requirements to build a solution that is unique to your organization. It takes multiple iterations and several perspectives to arrive at a satisfactory solution.
If you pick an off-the-shelf logistics solution, you can start booking your shipments in a very short time. It gives you the benefit of cost and scalability.
Hosting the application is another factor that must be considered when implementing an application. On-premise hosting is a more expensive and tedious way that has lost its throne to cloud-hosting. The popularity of the cloud is due to its security, scalability, and cost-effectiveness. Both custom-made and off-the-shelf solutions can be hosted on a secure server and managed by a third party.
According to Gartner, nearly two-thirds of end-users prefer cloud adoption over an on-premise solution.
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Leaning towards ready-made logistics solutions
While custom-made solutions can satisfy your requirements, there are a few reasons that make them unattractive. Building a custom solution usually results in surges in budgets due to the fluctuations in requirements. This could push the implementation of the product too far and affect schedules.
Ready-made solutions are built with multiple perspectives and specific industry pain points in mind. Solutions including Logi-Sys are built after many years of research of the industry challenges.
Logistics operations include transportation and warehousing, last mile. Consider you venture into more than one operation, a custom-made application made not be able to accommodate the requirement. But off-the-shelf products offer you the flexibility to pick and choose the additional modules as plug-and-play.
Why ready-made solutions are the wise choice for LSPs
In logistics, many tasks are repeated several times and involve constant communication with all teams. Automation for repeated tasks and reduced human intervention is needed if your company must grow at a steady speed. Ready-made solutions make integrated functions and hassle-free communication possible due to a central database. Cloud-based software for logistics ensures the tasks are monitored in real-time with the provision of sharing auto-alerts of positive and negative milestones. Some other key benefits that make ready solutions a preference are:
- Low capital required and faster return on investment
- Gain of logistics domain technical expertise
- Easier integration with added third-party services
- Flexibility and future growth is accommodated for
Final word
The dilemma of building or buying is common. But with the accelerated adoption of cloud-based logistics management software, is helping manage disruptions and also achieve growth. For risk mitigation and providing increased customer satisfaction with cost optimization, ready-made logistics software plays a pivotal role.