Freight Accounting software Vs. Normal Accounting software – Which Should You Use?

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Freight Accounting software Vs. Normal Accounting software – Which Should You Use?

 Should you use freight accounting software or normal accounting software? you have heard this question before

Many people ask this question because they don’t know the difference between freight accounting and normal accounting software. The main difference between these two types of software is that freight accounting software offers more features than normal accounting software.

The freight accounting software is a tool for business owners and executives who want to track the money flow in their company. It helps them to manage the finances of their company and make sure that everything is running smoothly. Moreover Freight industry needs an different type of accounting  Agent Accounting   for real time settlements , Air line  and Shipping line and transporter Accounting  differs from each verticals. 

Some of the reasons why you should use freight accounting software are:

  • It helps you to track every single transaction from start to finish, including invoices and payments.
  • It gives you an accurate view of your cash flow.
  • It helps you to manage your inventory so that you don’t run out of stock and land up paying more on inventory costs than what they are worth.
  • You can use the freight accounting software to manage your vendors and suppliers as well, which will help you stay on top of any issues before they arise (and save yourself from having to pay late fees).

The main purpose of freight accounting is to record all the transactions related to transportation of goods. It helps in tracking, managing, monitoring and controlling the movement of goods in a warehouse or warehouse yard by using bar codes or RFID tags. It also helps in managing inventory levels by recording the movements of goods from one location to another. A good example for this would be if you are running an e-commerce business where customers place orders and products are shipped from one location to another through a delivery service like FedEx or UPS etc.

Freight accounting software can help people to manage accurate Pay outs and Receipts and helps to manage settlements on real time by referring the shipments.

India’s National Logistics Policy 2022: Policy of the Future

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India's National Logistics Policy 2022: Policy of the Future

The National Logistics Policy, the first of its kind in India, aims to make Indian goods more competitive while also promoting economic growth and expanding job possibilities.

The National Logistics Policy (NLP) is a long term vision document that aims to improve India’s logistics industry and make it more competitive. The goal of the NLP is to lower the cost of logistics from its current 14% of GDP to less than 10% by 2022 despite the highly fragmented nature of India’s logistics industry. The NLP was announced on September 17, 2022, by the Prime Minister Narendra Modi and Formulated by   Ministry of Commerce and Industry.

India has been imposing restrictions on imports, which has resulted in the loss of $40 billion by the country. The new policy aims to bring back the lost orders and increase the country’s exports by 40%.

The new India’s National Logistics Policy 2022 was approved by Prime Minister Narendra Modi’s Cabinet on July 19. The draft policy was prepared after consultations with various stakeholders including private sector companies, trade associations, logistics associations and experts from academia.

The policy also aims at making India a global hub for e-commerce and e-commerce logistics. It will focus on developing a robust logistics ecosystem across the country that includes modernisation of ports, railways and roads to facilitate movement of goods from production units to consumers.

The policy will provide grants to states for development of their port infrastructure so that they can provide better facilities for cargo movement.

It will also develop an integrated database with information about warehouses, distribution centers and transporters across the country so that traders know where their consignments are located at any given point in time.

The India National Logistics Policy 2022 is a comprehensive policy to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth.

The policy targets reducing the cost of logistics in India to be comparable to global benchmarks by 2030, improving the Logistics Performance Index ranking to be among the top 25 countries by 2030, and creating a data-driven decision support mechanism for an efficient logistics ecosystem. The policy has four features that will be implemented through the Comprehensive Logistics Action Plan (CLAP). It includes: 

 

1. Integration of Digital System (IDS)

The National Logistics Policy to be implemented from 2022 onwards will have a requirement for the integration of digital system to be implemented in all logistics sectors. The IDS will be developed by the Ministry of Road Transport and Highways (MoRTH) and Department of Commerce (DoC). It is expected that this will improve efficiency by providing better data analytics and decision-making tools for logistics companies.

2. Unified Logistics Interface Platform (ULIP)

The ULIP is an online platform that allows access to multiple e-commerce platforms through one login, which makes it easier for customers to buy products on various e-commerce websites like Amazon, Flipkart, etc., directly from their homes or offices. It also helps small businesses in connecting with global markets through one platform.

3. Ease of Logistics (ELOG)

This feature aims to reduce the time taken by consumers and logistics companies in completing transactions as well as make it easier for consumers to track their orders online. It will also help in reducing time taken for delivery by ensuring faster movement of goods from one place to another in order to meet consumer demand at best rates possible within stipulated timelines set by government authorities concerned

Goal of NLP (National Logistic Policy)

The goal of the NLP is to make Indian goods more competitive while also promoting economic growth and expanding job possibilities. The policy establishes a broad, multi-jurisdictional, cross-sectoral framework for the growth of the entire logistics ecosystem in an effort to address concerns of high cost and inefficiency.

The policy aims to make Indian goods more competitive while also promoting economic growth and expanding job possibilities.

The objective of this policy is to create a level playing field for all participants in the logistics value chain across sectors such as: transportation, warehousing & distribution and information technology.

12 Tips to Consider When Choosing a Shipping Software

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12 Tips on how to choose perfect Shipping Software

In the complicated world of shipping and logistics, choosing the right shipping software is crucial for businesses. With so many options available, it can be challenging to find the best solution. This guide is here to make things simpler, providing a step-by-step roadmap to help businesses make smart decisions when picking shipping software.

Understanding Your Business Needs:

Every business is unique. Start by delving into the specifics of your operations. What are the critical requirements for shipping software that align with your business’s workflows and objectives?

Choosing the right shipping software is not a one-size-fits-all endeavor. Each business is a unique entity with its own set of intricacies, challenges, and ambitions. In this light, understanding your business needs becomes a cornerstone—an indispensable guide that shapes the contours of your logistics strategy and determines the trajectory of your operations. Here’s a breakdown of why this step is crucial and how to approach it:

1. Identifying Pain Points:

Begin by pinpointing the challenges or pain points within your current shipping processes. Are there inefficiencies, delays, or errors that need addressing? Understanding these pain points helps you identify what functionalities or features the software must-have to alleviate these issues.

2. Assessing Workflows and Requirements:

Map out your shipping workflows comprehensively. From order processing to fulfillment and delivery, understand the different stages and intricacies involved. Identify the key requirements at each stage and determine how the software can streamline or enhance these processes.

3. Scalability and Growth Projections:

Consider your business’s growth trajectory. How do you foresee your shipping needs evolving in the coming years? Ensure the software aligns not just with your current needs but has the scalability to accommodate future expansions without significant disruptions.

4. Customer Expectations and Experience:

Evaluate the expectations of your customers regarding shipping. Are they looking for faster delivery options, real-time tracking, or specific delivery preferences? The software should enable meeting these expectations, enhancing the overall customer experience.

5. Inventory Management Integration:

If your shipping operations are closely tied to inventory management, consider how the software integrates with your inventory systems. Ensure synchronization between shipping and inventory data to prevent discrepancies and optimize stock levels.

6. Customization and Flexibility:

Each business operates uniquely. Look for software that offers customization options or configurable features to adapt to your specific workflows and preferences. Flexibility in the software’s functionality can be crucial for a tailored fit.

7. Budget and Cost Considerations:

While focusing on needs, it’s vital to align them with your budget. Prioritize functionalities based on their importance to your business operations. Assess whether the software’s cost aligns with the value it provides and fits within your budget constraints.

8. Training and Adoption:

Consider the learning curve for your team. Opt for software that is intuitive or offers comprehensive training resources. Ensuring your team can easily adopt the software minimizes disruptions during the transition phase.

9. Future Innovations and Technology Trends:

Stay abreast of emerging trends and innovations in shipping software. Consider whether the Freight  software aligns with these technological advancements to ensure you stay competitive and future-ready.

10.Customization Options:

Your business is unique, and so are your shipping needs. Choose shipping software that allows for customization, enabling you to tailor the system to your specific requirements. This flexibility is crucial for adapting to changes in your business model.

11.Analytics and Reporting:

Data-driven decision-making is essential for optimizing your shipping processes. Choose software that offers robust analytics and reporting tools, allowing you to track key metrics, identify trends, and make informed decisions to enhance efficiency.

12.Security and Compliance:

Shipping involves sensitive data. Choose software that prioritizes security measures, including encryption protocols and compliance with industry standards.