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What Is Shipping Software? How It Works, Benefits, and Key Features for Supply Chains

Although many end users don’t pay much attention to the shipping process, this critical part of the supply chain can make or break a manufacturing business. Much of your daily workflow depends on the ability to get raw materials into your factory and to deliver products to your customers. Shipping software refers to a digital platform that makes the process easier through automation, real-time data, route planning, and more. 

Choosing and implementing the right shipping logistics software for your agency improves your visibility into the shipping process and improves the customer experience. 

How Shipping Software Works

The shipping process involves packaging, transporting, and delivering products, parts, or raw materials from a supplier to your factory or to your customers. You’ll likely use shipping software to manage your shipments to and from customers. 

Integration With Sales Channels

When shipping software integrates with your ordering and inventory management systems, it automatically imports data from new orders from your sales and customer service team. Your warehouse receives the order in real time and starts the picking and packing process. Inventory levels are automatically updated so your sales team has the right data when meeting with customers. 

Supports Multiple Carriers

Shipping automation software with multi-carrier support can help you optimize deliveries by choosing the best carrier for each order. These systems will assess rates, routes, and other options to help you save money while meeting customer needs. 

Shipment Tracking

Customers value visibility, and shipping software helps you provide it. These tools let you and your customers track packages and see estimated delivery dates. Depending on your industry, some customers may be relying on you for their own operations. Shipment tracking helps you build customer trust and build a reputation for reliability. 

Label Creation and Automation

With shipping and logistics software that offers label creation and automation, your warehouse team can work faster. While they’re picking inventory, the shipping software has the label ready. This feature also reduces human errors that result in incorrect shipments. 

Benefits of Shipping Software

Customer satisfaction is the primary benefit of using shipping software. Its automation features streamline your shipping process so customers get their deliveries faster, which improves their experience. 

Cost Effectiveness

Since shipping and logistics software can compare rates and costs between carriers, you save money without impacting your service delivery. Automated labeling and inventory management also keeps you from sending incorrect quantities to a customer or sending the wrong item altogether. You save money on rebates and returns. 

Real-Time Updates and Notifications

Accessing real-time updates and notifications benefits you and your customers. You can plan proactively for potential supply chain disruptions. For example, if your carrier sends you a notification about a storm impacting their operations, you can choose another carrier. Your customers can plan around their expected delivery date. 

Improved Inventory and Order Management

Since shipping management software integrates with your warehouse management system, you always know what you have on hand. Instead of waiting on a customer service person to manually enter an order and email it to the warehouse, each order is immediately transmitted to your shipping team. You can also track customer returns in real time. 

Key Features of Shipping Software

Modern shipping software offers more features that help you optimize operations. 

Advanced Analytics

Using a platform powered by artificial intelligence (AI) gives you insights from a large volume of historical data. Your shipping software evaluates the information to identify buying and return patterns for better predictive analysis. You can plan for seasonal spikes on certain items without carrying excessive inventory. 

Some supply chain software will also give you data on carrier performance, average shipping time, average costs, and more. These analytics inform everything from inventory management to marketing and promotions. For example, if your analytics show a lull for a certain product line, you can push these products during the slow season. 

User-Interface

Even the best shipping software is useless if your team can’t figure out how to use it. Look for shipping and tracking software with an intuitive interface. The software should be easy to navigate with clear menus and labels. Your team should be able to find the tools and menus they need easily without navigating multiple drop-down boxes or menus. 

Scalability

You need shipping software that grows with your business. Smaller platforms with fewer features are often more cost-effective, but they may not grow with you. Look for a platform that supports multiple users and carriers, and includes features you’ll need as you take on more employees and customers. For example, if you expand into another country, you’ll need software that integrates with those carriers. 

Security and Data Protection

Most shipping software operates on the cloud, which means your data is on the internet. Your customers expect privacy. Choose a shipping management system with encryption, third-party verification, and other features that protect customer data. 

Accessibility 

Choosing a platform that is accessible to people with disabilities is important for you and your customers. Some of your employees may need these features to do their jobs. Some of your customers need these features to track and manage their shipments. 

Industry Applications

Shipping software benefits people in multiple industries from retail fulfillment to manufacturing to third-party logistics (3PL). If you’ve outsourced shipping and logistics, this software gives you visibility into each shipment. Your customer service team can still field client questions about order status or inventory levels. 

Challenges in Implementing Shipping Software

For maximum efficiency, your shipping software should integrate with the software you use for warehouse management, inventory management, and customer service. When these systems can’t communicate, you end up having to process information manually. This slows down the whole process and increases the risk of human error. 

Although your customers appreciate transparency, they may also have concerns about their data living on a cloud. Clearly communicate your security measures to all clients and let them know if you are collecting any data to train your software. If you are, make sure customers can opt out, and don’t use any of their personal information. 

Implementing Shipping Software Into Your Business

Shipping software is a simple solution to improve customer service and save your company money. The analytics and real-time visibility help you make proactive business decisions that boost your reputation. Surgere offers smart shipping solutions ranging from asset management to transportation visibility. Learn more by contacting us today. 

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