Editor's Note: Take a look at our featured best practice, Landed Cost Calculator for USA Imports (Excel workbook). This landed cost calculator is an advanced Microsoft Excel ? spreadsheet that can be used to calculate the total landed cost of importing goods into the USA No need to waste time reinventing the wheel this spreadsheet has evolved from many years of practical use and ongoing development by a [read more]
How to Choose the Right Logistics Intelligence Software for Your Business
Also, if you are interested in becoming an expert on Supply Chain Management (SCM), take a look at Flevy's Supply Chain Management (SCM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
* * * *
Like most business owners, you’re always looking for ways to improve your operations and make more money. One of the best ways to do this is to invest in logistics intelligence software, like Sifted software. This type of software can help you make better decisions about your supply chain, inventory, and shipping. But with so many options available, how do you know which one is right for your business? This blog post will discuss the key factors you need to consider when choosing a logistics intelligence software package.
What Is a Logistics Intelligence Software Package and How Does It Work?
A logistics intelligence software package (LISP) is a software application that helps you make better decisions about your supply chain, inventory, and shipping. It does this by analyzing data from your business operations and providing insights that can help you improve your processes. For example, a LISP might help you identify bottlenecks in your supply chain or suggest ways to optimize your shipping routes.
Why You Need a Logistics Intelligence Software Package
There are many reasons why you might need a LISP. Perhaps you’re looking to improve your customer service levels or reduce your inventory costs. Or maybe you want to gain a competitive edge by being able to respond to customer demand more quickly. Whatever your reasons, a LISP can help you achieve your goals.
The Key Factors to Consider When Choosing a LISP
When choosing a LISP, there are several key factors you need to consider:
Data Type
First, you need to decide what type of data you want the LISP to analyze. For example, do you want it to focus on your supply chain data, your customer data, or both?
Data Sources
Second, you need to identify the data sources you want the LISP to use. These could include your ERP system, your CRM system, your e-commerce platform, etc.
Data Analysis
Third, you need to decide how you want the LISP to analyze your data. For example, do you want it to provide real-time insights, or do you prefer a more batch-oriented approach?
Reporting and Visualization
Fourth, you need to decide how you want the LISP to report its findings. Do you want it to provide simple reports, or do you prefer a more sophisticated visualization tool?
Pricing
Finally, you need to consider the price of the LISP. Some LISPs are very expensive, while others are quite affordable. Therefore, you need to find an option that fits within your budget.
The Benefits of Using LISP
There are many benefits of using a LISP, including:
Improved Decision-making
A LISP can help you make better decisions about your supply chain, inventory, and shipping. This can lead to improved customer service levels and reduced costs.
Increased Agility
A LISP can help you respond more quickly to changes in customer demand. This can give you a competitive edge over your rivals.
Improved Visibility
A LISP can help you gain visibility into your supply chain and understand how your processes are working. This can help you identify problems and make improvements.
Mistakes to Avoid When Choosing a LISP
When choosing a LISP, there are a few mistakes you need to avoid:
Choosing the Wrong Data Type
If you choose a LISP that only focuses on supply chain data, you will miss out on important insights from your customer data. Instead, make sure you choose a LISP that can analyze both data types.
Choosing the Wrong Data Sources
If you choose a LISP that only uses data from your ERP system, you will miss out on important insights from other data sources. Instead, choose a LISP that can use data from all of your systems.
Choosing the Wrong Pricing Model
If you choose a LISP that has a pay-as-you-go pricing model, you could pay more than you need to. Make sure you choose a LISP with a pricing model that fits your budget.
Some Best Practices for Getting the Most Out of Your LISP
Now that you know how to choose the right LISP for your business, here are some best practices for getting the most out of it:
Get Buy-in from All Stakeholders
Before you implement a LISP, make sure you get buy-in from all stakeholders. This will ensure that everyone is on board with the project and that they understand the benefits of using a LISP.
Define Your Goals
Before you start using a LISP, take some time to define your goals. What do you want to achieve with the LISP? Once you have defined your goals, you can choose the right LISP for your needs.
Test the LISP before You Buy It
Before you purchase, make sure you test the LISP to see if it meets your needs. Many vendors offer free trials, so take advantage of this and test the LISP before you commit to buying it.
Know Your Desired Outcome
When using a LISP, it’s important to know your desired outcome. What do you want the LISP to help you achieve? Once you have a clear goal in mind, you can choose the right LISP for your needs.
Other FAQs About LISPs
Below are answers to some other frequently asked questions about LISPs:
Q: What is a LISP in a nutshell?
A: A Logistics Intelligence Software Platform (LISP) is software that helps businesses make better decisions about their supply chain, inventory, and shipping.
Q: How does a LISP work?
A: An LISP collects data from your systems and then uses analytics to provide insights that can help you improve your decision-making.
Q: What are some drawbacks of using a LISP?
A: Some drawbacks of using a LISP include the cost of the software and the need for buy-in from all stakeholders.
Q: What are some tips for getting the most out of a LISP?
A: Some tips for getting the most out of a LISP include testing the software before buying it, defining your goals, and getting buy-in from all stakeholders.
Q: How much does a LISP cost?
A: The cost of a LISP depends on the features you need and the pricing model of the software. Make sure you choose a LISP with a pricing model that fits your budget.
Summary
If you’re looking for a way to improve your decision-making, a Logistics Intelligence Software Platform (LISP) may be the right choice. A LISP can help you gain visibility into your supply chain, understand how your processes are working, and make improvements.
284-slide PowerPoint presentation
Unlocking Seamless Operations: Introducing the Ultimate Warehousing, Logistics, and Distribution Management Toolkit
In the fast-paced world of modern business, effective supply chain management, logistics, and distribution are pivotal to success. Every delay, mismanagement, or inefficiency can [read more]
Want to Achieve Excellence in Supply Chain Management (SCM)?
Gain the knowledge and develop the expertise to become an expert in Supply Chain Management (SCM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities. It also captures the management of the flow of goods and services.
In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become. By April, many countries experienced declines of over 40% in domestic and international trade.
COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM. In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart. Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.
Learn about our Supply Chain Management (SCM) Best Practice Frameworks here.
Readers of This Article Are Interested in These Resources
Excel workbook
The freight management worksheet is a powerful tool that allows you to have complete control over your logistics department. With its easy-to-use dashboard, you can quickly check important information such as total freight cost, number of trips, drivers and vehicles, as well as average time, [read more]
|
|
904-slide PowerPoint presentation
|
|
Excel workbook
| |||
About Shane Avron
Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.
