Are You Making Wise Investment with Shipping Software?

When shipping and logistics managers invest thousands of dollars in integrated shipping software solutions to streamline their supply chain, they do it in a presumption that in due course returns from such investment will make back upfront costs of software, hardware, installation, and necessary training for all departments involved. Indeed in favorable business conditions, marine software solutions have been tested and proven to simplify complex supply chain processes, enable revenue growth, improve customer service, and slash costs of operation.

But just like all business decisions, there are risks involved in software implementation as well as in choosing between bespoke and packaged options. Ideally, functional shipping solutions software, whether bespoke or packaged, should be able to deliver its supposed business value within its expected lifespan – before it becomes obsolete. However, there is no guarantee that this is going to happen. This is because there are many factors that are simply beyond your control such as the following:

1. IT and software products age very quickly.

2. Customer preferences change.

3. Business models evolve due to fast changing market landscapes.

With these factors at play, you cannot expect that processes involved in your supply chain management will be predictable and remain the same in, say, 10 years. At some time, you will need to modify or upgrade your system to make it work with current IT platforms. And, with the current pace of IT evolution, change can happen in a shorter period of time than you might expect.

So how can you ensure that your initial investment on shipping line software pay out within your expected payout period?

Minimize upfront investment and reduce time-to-value by choosing packaged shipping software solutions. Aside from the fact that packaged software is much cheaper than its bespoke counterpart, it is also easier to implement and requires significantly less technical training even for new users. Additionally, you don’t need to hire in-house programmers to maintain and upgrade your system. This results in lower operational cost and longer software lifespan, giving you more time to make back your initial investment.

Profitability vs. Expansion: Shipping Software is Key for Survival in Container Shipping

Maritime shipping companies forecast rough sailing ahead due to a slump in global demand for container shipping and continuously increasing fuel prices. Add to that the growing supply of new ships driving competition for cargo and freight rates to a critical level. With this, shipping companies are steering farther toward cost-cutting and maximizing profit, setting aside other considerations such as expansion in the meantime. As has been pointed out by experts repeatedly, implementing functional shipping solutions software plays a critical role in achieving this goal.

Last year, A.P. Moller-Maersk, the world’s biggest container shipping company, warned of a slowing global trade in shipping. Earlier this year, the world’s biggest container carrier reported a 35 percent decline in its first quarter profit from last year, despite exceeding its first quarter target. Additionally, the shipping giant forecasts that its 2013 profit would be lower than that of 2012 even though it expects to surpass last year’s earnings of $461 million.

Whether it is good or bad news for the world’s leading container carrier, these results reflect the dire reality that shipping companies are struggling to stay in profit as a result of increasing costs of operation. The situation must be even more painful on the part of smaller, low capacity carriers. To address this problem, shipping software companies continue to develop advanced shipping company software designed for the very purpose of increasing the efficiency of ships, ports, and terminals and improving profitability.

Maritime software solutions are proven to streamline container shipping operations and enable operators to minimize common errors that can potentially incur significant damage and costs. Shipping companies, big or small, need to wise up and focus in improving profitability first, before considering other options such as expansion. In this time of tough climate for container shipping, business is truly a game of survival of the fittest, and automation using integrated shipping software is the best way to win.

Steer Clear of Shipping Risks: Ensure International Trade Regulations Compliance with Liner Agency Software

Managing movement of containers and cargo across international borders is not an easy task. Typically, a single international shipping transaction involves dozens of different parties, data elements, and business documents. Add to that, every country has its own set of trade rules and regulations with regard to importing and exporting goods. Failure to follow these rules can result in painful and costly penalties, fines, and business restrictions for any shipping company. Fortunately, modern supply chain logistics technology, in the form of shipping solutions software, is widely available to help you manage increasingly complex import and export trade regulations smoothly and affordably.

Traditionally, trade activities such as management of customs and transit procedures were handled manually often resulting in delays and worse, exposure to fines and/or other penalties for non-compliance. With integrated shipping software, shipping companies can replace traditional spreadsheet-and-fax-based systems with more efficient automated solutions. Marine software solutions can be configured to perform logistics activities such as:

• Product classification
• Management of customs processes and transit procedures.
• Restricted party screening and embargo checks.
• Creating and filing trade documents.
• Electronic customs reporting.
• Streamlining communication with port and customs authorities

Like other shipping companies, your biggest challenge with regard to implementation of liner agency software solutions is integrating it into your shipping process. The good news is that there are packaged or off-the-shelf software systems that are easy to install into existing platforms. In addition to addressing trade compliance woes, liner solutions such as container management and container tracking software provides complete visibility on your entire logistics network which allows you to effectively monitor and control your inventory, make intelligent decisions, and further improve the quality of your services.

When you have functional liner shipping software taking care of your international trade compliance requirements, you can confidently ship across international borders without worrying about any risk, liability, or exposure to illegal trade practices.