The importance of correct inventory tracking for logistics service providers
Logistics service providers and terminals generate revenue based on operations performed. They are an intermediary, where the customer temporarily places his goods. Which goods are involved does not ultimately matter much. For that reason, proper inventory tracking is crucial for such companies.
Logistics services is the market in which iOnLogistics from Temse earned (and continues to earn) its spurs. Its own iTOS software is integrally tailored to the specific business needs of 3PL/4PL providers and terminals. The software developer shares its insights with logistics companies and provides solutions to optimize their profitability. Here, the specialists take a closer look at the inventory tracking aspect.
Inventory management vs. inventory tracking
Inventory management is important for all logistics companies, but not always for the same reasons. Logistics service providers and terminals are in fact compensated for their operations. They bear no responsibility for the circulation of goods. It is the customer who decides when to discharge, how long they stay in the warehouse, what value added services need to be performed and when they leave again for their destination. For the owner of the goods, good inventory management is necessary because they generate sales. The 3PL/4PL providers and terminals, in turn, are more likely to bet on accurate inventory tracking. After all, their responisibility is to load, discharge or the goods and to provide value added services. By tracking this correctly they can invoice their activities and charge Warehouse Renting (WHR).
The essential elements of inventory tracking
Both the owner of the goods (customer) and the logistics service provider reap the benefits of reliable and correct inventory tracking. This info helps to manage the operations & flows and ultimately create a correct invoice:
- which goods are in stock
- how much of each good is in stock
- Where are the goods located?
- which operations have already been carried out for certain goods (possible VAS)
- since when the goods have been in stock (WHR)
- any additional stock info (dangerous goods/customs/extra info)
How do you handle this in practice?
Choose a system that provides good insight into your stock data. Since stock control is a priority for you as a logistics service provider, it is best to opt for software developed specifically for your business. With iTOS from iOnLogistics, you can tick off all these requirements. iTOS stores all operational data so that you can process and display them in different ways.
Are you a logistics service provider looking for an accurate inventory tracking system? Then be sure to check with the specialists at iOnLOgistics. You can also fill out the form below.