The global financial crisis of 2008 was quite a while ago but the economic slowdown that followed is far from gone. Being one among the worst hit, the shipping industry still sails through troubled waters.
With profits plummeting, most shipping companies are reluctant to invest in innovation, or anything new, for that matter. There are a few others who think out of the box and see this as an opportunity to equip themselves to meet the fierce competition and offer “more for less”. This is where Information Technology acts as a strategic business enabler and adds value to the business.
BE SURE OF WHAT YOU WANT
So what do you look for when you invest in an ERP software during such hard times? An earlier trend was to choose standard ERP systems and integrate them with internal systems. The downside of this strategy is that the software might not be very relevant to your business requirements. The operational needs of a freight forwarder can never be complementary to those of a container leasing agent. With a standard ERP, you might end up getting something insufficient for your cause or buying more technology than you need.
The most critical factor in successfully selecting an ERP system is identifying what you need to efficiently run your business. After doing an initial ball park analysis for product fit, it is important to review your needs thoroughly and relate them to the ERP solution you have opted for. Ensure that the software comprises of all the modules you need and it is well designed to offer all what you are looking for. Also, the product should be intended for your type of organization.
UNDERSTAND THE MARKET TRENDS
Keep yourself updated on the latest technologies implemented in the shipping arena while choosing an ERP solution. For instance, the RFID technology is widely used now, owing to its ability to speed up the inventory management. While most shipping companies are still in a pre-cloud stage, some have moved on to use Cloud based solutions, thereby enabling business improvement. Crisis might be a good opportunity to move to a new architecture where solutions are Cloud-based. This will help to integrate new Social Media channels and make use of Analytic tools in the post PC era ruled by mobile devices.
TOTAL COST OF OWNERSHIP
When you are evaluating a solution cost, consider all the aspects including the software, implementation services, ongoing maintenance and the cost of upgrades. All these elements play an equal role to help achieve a quick ROI. In an age of aggressive marketing & attractive discounts, you may be forced to believe that you are getting a good bargain at the time, but high cost of implementation, expensive annual maintenance and pricey customizations will take its toll on your return on investment, perhaps eliminating it totally.
PLAN FOR THE FUTURE
Before you choose an ERP system, see if it offers enough capacity for the growth of your business. Analyze your business thoroughly and forecast your position in the near future, say 5 years or 10. Buy a software that can meet your changing needs in these 5 or 10 years, and not one that is good for the 1st year alone. Very often, companies do not plan ahead. As a result, they are forced to plan an upgrade or overhaul immediately after they are done with the installation of a new ERP system. This can be a very expensive mistake and should be avoided at any cost.
Many ERP vendors today understand that, to exist in today’s competitive market, they need to work hand in hand with their clients to ensure that the implementation of their software is a smooth and fruitful affair for their clients. “Educate and sell” is the new business mantra and this is what we follow with our Shipping ERP solution – FINS. We have utilized our extensive experience in the shipping sector to understand and address the IT requirements of various Logistics services. Over the past 6 years, we have utilized cutting edge technologies and relentlessly studied the shipping sector to fine tune and enhance our ERP suite. And the result – we have enabled our customers to transform the way they do their business. With an increase of 30% in operational efficiency, our clients are a happy lot. We continue to embrace the latest technology trends and push our limits to serve the shipping sector better.