The Role of Document Management in Logistics

Data for business can be compared to blood for the body. That is, the latter cannot function without the former. Accordingly, it is necessary to optimize the process of information circulation in order to achieve an effective level of data use in the company.

? For this purpose, EDMS (Electronic Document Management Systems) exist, which are able to establish a smooth, fast, secure, and collaborative process of working with data, including documents of all types.

Today, you'll learn more about EDMS and its role in the logistics sector.?

Benefits of EDMS for Logistics Businesses

Manual document processing requires a significant investment of resources, such as office space, logistics, etc., as well as staff time. In the logistics segment, the document flow sometimes reaches enormous volumes, making it impossible for the business to function properly without implementing an EDMS in its infrastructure.

The main advantages of such systems include:

• Efficiency Improvement.
• Accuracy and Compliance.
• Cost Reduction.
• Enhanced Collaboration.
• Risk Management.
• Data Security.

And then you'll understand why.

Efficiency Improvement

In a broader context, an electronic document management system can improve the efficiency of your staff at all levels. In particular, managers who accept incoming customer requests, specialists who set up supply chains, those responsible for inventory, etc.

The process of working with documentation, its execution, and transfer to other departments of the company is accelerated. The main advantage is the digitization of data, which improves further processing in the context of analysis.

Accuracy and Compliance

EDM systems are also designed to improve the accuracy of records, including bonds, applications, internal, and other types of documents. The digital archive stores as much information as possible and sets differentiated levels of access to it.

Automation of the process of filling out and validating documents will also come in handy, as it minimizes the impact of the human factor on the logistics company's document flow.

Cost Reduction

With a high-quality document management system, you can optimize the work of your staff by freeing them from the responsibilities of manual documentation. An additional item of savings is the elimination of office space, which, in some cases, accounts for up to 15% of a brand's costs.

Given the volume of paperwork in the logistics business, switching to digital tools will be a good investment in further reducing the company's costs.?

Enhanced Collaboration

With EDMS, you can forget about constantly moving between offices in search of responsible persons. All documents are stored in a single registry, from which an employee can open and interact with the documentation.

In particular, enter information, check some data, sign documents with an electronic signature, delegate them to the next responsible persons, manager, etc.

Risk Management

With a well-built document management system, you can prevent common problems. For example, you'll protect information from theft, forgery, and more.?

In addition, the system has the ability to track document activity, which means that in the event of fraud, you can quickly identify the offender and punish them accordingly.?

Data Security

Forget about unauthorized access to corporate information. With EDMS, you can fine-tune the system so that documents can only be opened from certain authorized accounts. The same applies to changes that only authorized persons are allowed to make.

Moreover, you can encrypt information and documents, making them completely secure and hidden from prying eyes. This way, you can prevent the loss or theft of corporate or customer data.

Types of Documents Managed in Logistics

Not all company information can be used in EDMS systems, but the dominant part of it will still be digital.

To summarize, this applies to the following types of data:

• Shipping Documents.
• Inventory Records.
• Invoices and Payment Records.
• Contracts and Agreements.

Why these types of information? Let's take a closer look.

Shipping Documents

Supporting data required for cargo declaration and tracking:

• Bills of Lading.
• Shipping Instructions.
• Customs Declarations.

It is important that these data are stored in the system in a digitized form, as they are important even in the context of arbitration, accounting, etc.?

Inventory Records

Documents related to warehouse accounting:

• Stock Keeping Units (SKUs).
• Inventory Levels and Movement Reports.

It must be digitized and entered into the system for better enterprise accounting, load planning, and organization of logistics processes.

Invoices and Payment Records

Payment information:

• Supplier Invoices.
• Payment Receipts.

It is important to have a digital system that will automate payment processes, collect and analyze receipts, and record expenses/income at the enterprise.

Contracts and Agreements

Legal documentation:

• Supplier Contracts.
• Service Level Agreements (SLAs).

Critically essential for logistics companies to ensure effective business protection in case one of the parties to cooperation agreements violates the contractual provisions.

A standalone EDMS or an ERP module?

It is logical that EDMS is critical for the logistics segment, but in what format is an open question.

If you develop a standalone EDMS or connect a SaaS solution, you will most likely get a good operational environment but poor data compatibility.

With an ERP module, the situation is exactly the opposite: data compatibility will be maximized, but the interface will be limited by the platform's capabilities.

There is a third compromise option.

You can build your own OSS-based system or connect a separate module to a ready-made one, which will be proactively configured to the specifics of your platform.?

In any case, even a weak EDMS is a better option than manual document management at a logistics company.

Do you agree with this statement?

Leave your thoughts on this in the comments!