5 Reasons Why Logistics Planning Software is Essential to a Business



The world is more fast paced than ever which means companies need to have a high degree of adaptability combined with a strategic management plan if they wish to succeed. Logistics planning software is a crucial component to this strategy as it can help to streamline an entire supply chain from just one part so that costs may be cut all while inventory management is improved.

What is Logistics Planning Software?

When looking at the supply chain of an organization, everything from the sourcing of raw materials to the delivery of the good or service to a customer is included. Logistics planning directly effects the parts of the supply chain that encompass the storage and delivery of goods and services to the customer.

This means production planning, sourcing, procurement, packaging and more all fall under the umbrella of logistics planning. As the times have become more and more digital, logistics planning software has been developed to streamline the overall production process while improving the accessibility of information at this stage of the supply chain.

Essentially replacing older logistics management items such as tracking information with paperwork or spreadsheets, new software can be used to track entire warehouse inventory at a glance or even to develop an entire enterprise resource planning system.

Key Features of Logistics Planning Software

There are a number of aspects involved with logistics planning software considering just how expansive this stage of the supply chain is. Most notably, logistics planning software includes:

  • An order managements system that tracks everything from the time of order to delivery
  • A database containing relevant information on customer orders
  • Inventory management 
  • Management of inventory once it reaches a warehouse or other storage facility
  • Integration with a larger supply chain management system 
  • Forecasting capabilities for demand and supply
  • Management of the transportation of inventory 
  • Real time visibility into the current status of inventory 

As technology continues to develop on a daily basis, the supply chain visibility that logistics planning software provides will only continue to grow. In fact, the global third-party logistics software market is projected to grow at a CAGR of 9.48% through 2026, with North America accounting for 42% of the market’s growth. There is no better time to start investing in this software at your organization than now.

Common Problems Solved by Logistics Planning Software

While increased availability through logistics planning software can sound beneficial on its own, it’s important to go further by outlining many of the common problems that are solved by integrating this technology:

  1. With transpiration costs on the rise due to gas prices and other factors, logistics planning software can help reduce costs by optimizing delivery strategy with faster routes.
  2. Coordination between the different teams of the supply chain can be spotty, but logistics planning software can provide real-time information on the status of inventory so that communication is centralized. 
  3. Errors in the storage of inventory can be reduced using this software, thereby decreasing the amount of inventory that sits on a shelf past its useful life.
  4. Delivery delays caused by poor weather, warehouse staffing issues, and more can be reduced through the use of timely inventory updates. 

5 Benefits of Logistics Planning Software for an Organization

Beyond the solved problems listed above, there are a number of benefits that logistic planning software can bring to an organization:

1. Faster delivery of products

One of the primary benefits of logistics planning software is that it can help improved delivery time by speeding up the production cycle. Additionally, this software can plan optimal delivery routes and choose carriers best suited for the delivery to ensure there are minimal delays.

2. Minimized human error

The costs of human error can be expensive. In recent costs of downtime surveys put out, 91% of organizations reported that an hour of downtime costs them over $300,000, going to show the importance of reducing human error. Automation can help reduce the likelihood of downtime and the loss of money.

3. Automated functions in a business

Computers are faster at analyzing data and making key business decisions than humans. Logistics planning software can spot gaps in a supply chain and deploy a solution faster than most people.

4. Reduced costs of business

By automatically comparing different shipping rates and production costs, businesses can find the best pricing for their needs. Additionally, expedited shipments can be lowered through better supply chain management, which further reduces associated costs.

5. Improved customer support

Finally, strong logistics planning software provides effective customer support at all levels. By integrating chatbots, automated alerts, and other features, customers can have quick access to the location of their order.

Optimize your business today

Revolutionizing your logistics planning is just one small piece of the puzzle towards improving overall supply chain management. Focusing on developing a centralized view of your entire supply chain can help any organization identify where the faults may lay and how they can be addressed to improve operations as whole.