5 Tips for Choosing ERP Software in Logistics Industry

Tips for choosing the right ERP that helps business boosts efficiency and streamlines operations in Logistics industry
February 26, 2024 by
Uyen Duong

In the dynamic world of global trade, freight forwarding plays a vital role in ensuring the smooth flow of goods across borders. Choosing the right ERP system requires in-depth planning suited to your operations, then you can streamline your supply chain, reduce costs, mitigate risks, and gain a competitive edge in the market.

Enterprise Resource Planning

Integrated ERP software facilitates streamlined operations across key business functions, tailored to meet specific industry and company requirements. Yet, selecting the ideal ERP solution presents a significant challenge amidst the wide variety of available options. This task is particularly daunting in intricate sectors such as freight forwarding, where considerations like system integration, customization, regulatory compliance, and feature alignment further compound the decision-making process.

The challenge of managing delivery without ERP software

1. Lack of real-time visibility: 

One of the most significant challenges of managing operations without freight software is the lack of real-time visibility. It's crucial for freight forwarders to constantly monitor the precise status and conditions of their shipments. However, without freight software, accessing this critical information can prove arduous, making it challenging to effectively manage multiple shipments across various modes of transportation

2. Manual data entry

Freight forwarding operations can involve a lot of paperwork, from bills of lading to customs declarations. Without freight software, this data entry can be time-consuming and error-prone. Manual data entry also increases the risk of lost or misplaced paperwork, leading to delays and potential financial losses.

3. Limited analytics and reporting

Freight forwarders need access to analytics and reporting tools to track their performance, identify trends, and make data-driven decisions. However, without freight software, these tools may be limited, making it difficult for forwarders to analyze their operations effectively and make improvements.

4. Lack of automation

Freight forwarding operations can be complex, involving multiple stakeholders and various tasks. Without freight software, many of these tasks must be done manually, which can be time-consuming and labor-intensive. This lack of automation can also increase the risk of errors and delays, leading to potential financial losses.

5. Difficulty in managing communication

Communication is critical in the freight forwarding industry, with stakeholders in different locations and time zones. Without freight software, it can be challenging to manage communication effectively, leading to misunderstandings, delays, and potential financial losses. Freight forwarders face several challenges when managing their operations without the use of freight software. Real-time visibility, manual data entry, limited analytics, and reporting, lack of automation, and difficulty in managing communication are just a few of the issues that can arise. Investing in freight software can help forwarders overcome these challenges, streamlining their operations, reducing costs, and improving efficiency.

5 Tips to choose the right ERP Software in Logistics Industry 

Looking for a cohesive system that provides:

1. End-to-end Integration

Business leaders must initially prioritize an integrated solution that aligns with the unique demands of freight forwarding. It's essential that the selected system adeptly oversees all operational facets, encompassing import and export processes, consolidation, forwarding, trans-shipment, and more, spanning the diverse spectrum of freight activities. In addition to fulfilling core functionalities, the ERP system should seamlessly integrate with the broader ecosystem, establishing connections , and other stakeholders.

2. Greater Visibility and Financial Controls

The system must allow the owners and the agents with financial statistics to help make the right business decisions at the right time. The system must ensure data integrity through the workflow, enable fast month-end closures, and track the profitability of every aspect of shipment.  

3. Scalability

Prefer an ERP that is scalable and can be upgraded to support the increasing complexities and size as the business grows, to remove the redundant cost, and provide economies of scale. This will fulfill one key goal of increased profit.  

4. Configurability for your business

Choose a system that is configurable to align with your business requirements seamlessly, eliminating the necessity for core software alterations. Ensure the ERP facilitates the creation of diverse hierarchies, departments, and branches, while seamlessly integrating with the logistics network without the need for a change request to the software.

5. Customer Support and Service Availability  

Look for the service provider’s track record of delivering excellent customer support and ensuring consistent service availability for users. It's crucial to have access to product support and prompt management assistance in resolving technical issues to swiftly restore business operations. Additionally, the service provider should utilize an advanced ticketing system and offer comprehensive technical and product enablement for optimal performance.


For every freight forwarding business, embracing technology and digitization is crucial. Choosing an ERP system tailored to specific needs is paramount. This strategic selection empowers companies to enhance cost efficiency and drive maximum value. While implementing an ERP solution is a significant decision, thorough due diligence ensures long-term success. 

Let's contact us for further discussion about how to build a comprehensive solution for freight forwarders in the current digital transformation era.