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April 19, 2021 | 12:04

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Transport management systems define the future development of the logistic industry. It is one of the essential tools for delivering products and managing warehouses. 

In the last few years, the logistic industry has been modified because of changing the customers’ expectations on the delivery process. People want to get their products as soon as possible, and big companies have already started to innovate the logistic management system development to figure out this need. Supply chain management depends on the market rules and must be updated according to digital trends and software innovations. 

Simultaneously, the industry is quite multifaceted, and it can be challenging to decide on the appropriate software solution for this management tool. To understand various approaches in creating the best custom logistic solution for the company, we will point out the types of LMS and strategies in implementing digital decisions into life. 

Basic principles of supply chain management. Source

Types of Logistics Management Systems

The logistic management system is a complicated tool that works for optimizing the delivery process from the first step of creating an order to the last one of delivering the product to the customer’s door. There are a few basic types of management systems for custom logistic solutions. 

Logistic management process. Source

Supply Chain Management System (SCMS) is one of the fundamental levels of managing all the information about goods and finance. Logistics is only a part of SCMS, as the whole system includes ordering information, software for every partner involved in product creation, order fulfillment, and tracking the shipment. SCMS can also help to manage global logistics and navigate a live circle of products. 

Warehouse Management System (WMS). There are many essential warehouse management processes, and WMS helps to visualize business inventory and facilitate daily planning, organizing, directing, and controlling the process. WMS software is used for effectively detecting such warehouse problems as overstocking or understocking. 

Read also: How to Build Warehouse Resource Planning & Scheduling Software for Retail Business?

Transport Management System (TMS) is the best tool for tracking all the vehicles used for transporting goods. It also allows collecting the data on cargos and couriers. TMS is often used for building cooperation with other logistic companies. 

Read also: Types of TMS and Must-Have Functionality

Fleet Management System (FMS) is the solution that helps business owners to maintain and manage the fleets. The data from FMS helps to create a logistic planning process and ensure business compliance with regulations. 

Custom Logistics System (CLS) is created and designed for the specific needs of different businesses. Custom software solutions are based on clients’ requests, but it usually consists of some essential modules. It can be order, labor, warehouse, or inventory management modules. The software also can be used for analytical tasks and developing communication canals.

Read also: How to Develop Logistics Software for Successful Transportation Management

AMCONSOFT approach to logistics projects

Amconsoft has worked with logistic management systems for the last decade, and we define four basic approaches in creating the best solution for clients’ needs.  

Eliciting your business needs

It is challenging to build a valuable solution for the business if you do not know what problems the business owner will solve by this solution. The first step in the analysis is examining the industry from different perspectives. Defining the needs will also help create a measurement system for evaluating the new software solutions’ results. 

To get this information, we need to understand a few fundamental issues:

  • Which stages of the supply chain the company work with?
  • Is it a B2B, B2C, or B2G business model?
  • Where are the most operations located? Is it international or local business?
  • What is your type of shipping? Do you use full truckloads?
  • What is the type of ownership of the business?
  • Do you ship raw materials or final products?
  • After delineating those questions, we will have the first part of the information for creating the general report before starting to work with the software. 

    Defining all stakeholders

    The next important step in the preliminary analysis of the customer’s needs is defending all business stakeholders. It is essential to understand that stakeholders have a necessary influence on business development. 

    In the logistics industry, it can be shippers, residents, regulators, planners. A strong relationship with stakeholders is a ground for the organisation’s reputation. All stakeholders use their unique needs and approaches to the software characteristics. That is why defining all the stakeholders will help understand their needs and provide the best decisions. 

    Examining your business processes

    In some cases, business owners are sure that they know everything about the organizational processes in detail. Usually, in-depth research helps to define some issues that are not obvious. We examine all processes step by step in this stage, focusing on internal and external information flow. This examination helps us to model the process and detect the weak links on it. 

    Creating a custom solution

    This is the final stage in the software development process. After collecting all the data and analyzing it, Amconsoft is ready to choose the clients’ management system’s best technical decision. At this stage, we collect all feedback on the selected solution, improve it, teach the managers or partners to use the software. This approach allows us to create a customized solution that will match all specific clients’ expectations. 

    At the same time, our clients get a transparent process of developing a logistics management system, revealing all the errors and delays. Moreover, they bring unique software customized for real business needs. All those modules are integrated with a general strategy and allow you to work with them in any location. 

    Conclusion 

    The logistics software system helps to implement all four levels of supply chain management. It is strategic management that needs to have long-term planning abilities. Tactical management involves engineers and middle management to have monthly or quarterly planning according to its goals. Operational management provides day-to-day planning processes. Finally, the execution management level is based on delivery options and helps navigate transportation and warehouses through the process. 

    Read also: How to Build Logistics Software for Enterprise?

    To have a solution for all the management levels in logistics, the company needs to have a strategic plan and innovative software. Understanding the industry’s framework helps to provide deep analysis and create integrated and multifunctional management technology solutions. 

    Basic principles of supply chain management. Source

    Tags

    #Logistics#Technologies#TMS
    Views: 93

    Written by:

    Alina Plotnitskaya

    Chief Innovation Officer (CINO)/Product management, help to create startups from the idea to final release, addicted to inspiring ideas and great products.

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