LMS as a management tool in 3PL services

Thanks to digitization, warehousing and transportation operations can now be jointly managed through an LMS to improve the customer experience and create an effective ecosystem of supply chain providers.

Logistics management

Logistics management is responsible for integrating the information flow and administration tools, handling materials, packages, stock, transport, storage and security, from the starting point to the consumption point.

LMS as a management tool in 3PL services

There are four types of LMS logistics management, each focusing on a different process:

Supply and logistics management of LMS: planning, purchasing, transporting and storing materials.

Distribution and movement of materials: loading, unloading, transport and monitoring of stocks.

Logistics and production management: location of materials for manufacturing products.

Reverse logistics: recovery of materials and production supplies and product returns.

Correct logistics management brings great benefits, such as finding more efficient ways to move resources and products and providing total visibility, which in turn produces savings in operating costs and correct inventory levels.

LMS for logistics management

Logistic management systems or logistic management systems (LMS) are tools capable of managing transport and storage processes in a continuous, integrated and optimized way, so that they provide real-time visibility of both the cargo flow and the procedures that are carried out.

These systems unify databases and structures and use information from each process to automatically feed the next without interphases or duplication of information. It was to make this a reality that many transport management software (TMS) companies have merged with warehouse management (WMS) ones.

Interconnected modules

Generally, the LMS has the following modules, which are integrated and connected to each other:

Order administration : creating and editing stocks, managing customer service, accepting payments, checking fraud and managing documents.

Inventory management: control and documentation of the product for sale. Centralizes all data in one place.

Warehouse management: maintenance, control and automation of warehouse operations: receiving items, moving them, managing warehouse personnel, tracking merchandise. This module, in turn, is divided into several:

Warehouse design : optimize storage space and improve the flow of goods.

Picking: Synchronization of scanner devices to locate merchandise.

Packaging: guarantee that the packaging is carried out in the correct order.

Personnel Administration: Assigning tasks to employees through workforce planning and scheduling capabilities.

Strategic transport planning: choice of shipping method, connection to the logistics operator’s network and determination of customs duties and documentation in different currencies.

LMS as a management tool in 3PL services

Transport administration: management and scheduling of online deliveries according to parameters such as population density, unit type and capacity, traffic etc. This module is divided into others:

Crossdocking :

elimination of the storage process.

Last mile: contracting package carriers for the last leg.

Order tracking: tracking shipments and alerting on shipping and unforeseen delays.

Shipping accounting: shipping cost information, billing codes, budgets, etc.

Reverse logistics: agility in repair, return and product relocation of LMS processes. This module has other submodules:

Information tracking; tracking product location and reason for return.

Bounce Status: Instant notifications of bounce activity on the portal, via email or text message.

Quality assurance follow-up: notification of the status of products that must be removed or repaired.

Analytics: business intelligence, development of performance indicators (KPI), computer models to predict problems in the supply chain. Provides reports such as costs associated with shipping, lowest cost carriers, KPI etc.

The integration of these modules allows easy-to-read progress tracking through Kanban tables, Gantt charts and dashboards.

LMS Integration

The integration of an LMS in a company can happen in two ways:

Creation, purchase and administration of the system on your own.

Hiring of a logistics operator (3PL), which offers a quick implementation period as there is no need for employee training. The 3PL can be configured within the enterprise resource planning (ERP) system as another plant connected to the company. Integration can be performed in different ways:

Through electronic data interchange (EDI)

Through an application programming interface (API)

Through files in XML, JSON, flat file, CSV, etc. formats.

Companies specialized in logistics or 3PL are contracted to carry out the functions of storage, distribution, delivery and added value, which is why it is necessary for them to have data exchange  LMS technology and connectivity with their customers for a complete and correct integration.

At Solstice we are able to work with different processes and, thanks to our transport administration and risk management tools, we are able to offer full real-time visibility, as well as reports that allow you to make better decisions.