Advantages of a Ready Made Software for a Logistics Player

Advantages of a Ready Made Software for a Logistics Player

Feb 27

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A logistics company can face a genuine dilemma between choosing to implement a ready made software which is industry specific & a customized software (a tailor made application). There are a large number of advantages that installing a ready made software can have over a customized software, which are as follows -

1) Development Time -

A ready made software generally does not require any development time since, it is already pre-developed. Thus, it can be installed immediately after purchase. In contrast to this, a customized software requires a significant amount of development time since, the application has to developed from scratch. For example, a logistics company will have to have detailed meetings with the development team of the IT company for discussing his complex processes in order to get a customized solution. This time will be saved if he implements an effective readymade solution.

2) Error Correction -

Typically no error correcting time is required for a ready made software. Errors, if any are removed in the software upgrade. This is due to the extensive testing in the development stage. Comparatively, a customized software requires extensive error correction. This is because logistics comprises of the amalgamation of multiple processes which make the code of the software complicated.

3) Cost -

A ready made logistics software is relatively low cost to acquire because development cost is spread out among numerous customers. Thus, cost overruns are not an issue. However, in case of a customized software the following two scenarios are possible -
(a) Cost is usually significantly higher than that of comparable off-the-shelf packages. There is distinct possibility of cost overruns.
(b) If cost is low, the customer is probably dealing with a freelancer thus, reliability and technical support may then be suspect.

4) User Pool -

A popular ready made logistics software has numerous users leading to a sizeable population of skilled users for it. Thus, there is a source of informal technical support. A customized application is by definition unique thus, only the user company’s employees will be familiar with the software.

5) Technical Support -

The developer of a ready made logistics software has the experience of dealing with a wide user base. Thus, the developer already knows the usual problem areas and has quick solutions for the same. The users are aware of the functionality of the software & not its technical aspects. Thus, the support given is by a workforce who is acquainted with the processes of the logistics industry & thus, can give a better solution. The user of a customized software, unless dealing with an established organization (which has made the application), technical support for a unique software may not be systematic, reliable or even available at all.

6) Pace of Product Evolution -

A popular ready made logistics software has a wide user base. This naturally gives more frequent, varied & critical feedback. A ready made software developer thus, is able to improve the software product frequently and in the areas that matter to customers. For example, a certain process like automated multiple report making & submission can be suggested by a user. This can be developed into the software & thus, all the users would benefit from this upgrade. In the case of a customized software, since the user organization dictates the pace of the application’s evolution, significant developments in the user’s industry (best practices) may escape notice.

7) Ease of Use -

Ready made software products are generally very user-friendly. Since, many logistics players would have used this software & given their inputs, therefore the same becomes more user centric due to multiple upgrades. In a customization situation, the application is by definition unique. Some problems will be first-time experiences for all involved, and therefore may be time-consuming to resolve.

8) Configurability -

Ready made software products can be highly configured to the individual’s requirements. For example, which bill has to be raised when or which tax has to be applied where is already worked on by the developer who is updated with the industry happenings. In contrast to this, a customized software is reengineered out of processes. The processes of the company may be inefficient but they survive because of the custom-tailoring approach. I.e., inefficiencies may get institutionalized.

9) Industry Best Practices -

A ready made software is made according to global best practices. It is validated & perfected over the years. Adoption of best practices can help to achieve better growth. In contrast to this, a customized software is developed according to the processes being used by the company. This can lead to stagnation as the processes are not benchmarked according to the industry.

10) Customer-Developer power relationship -

A popular ready made logistics software has a wide user base of logistics players which put constant pressure on the software developer to maintain product excellence, fair pricing & reliable technical support. This is to the customer’s benefit. However, a customized software’s user is highly dependent on the developer of the same. The incompetency of the developer has adverse effects on the user’s functioning.

With these advantages being mentioned, it is important to note that a customized software has its own place in the IT industry as well. A customized software is generally chosen by a logistics company with a comparatively larger IT budget with highly specific business integration requirements. In all other cases, implementing a ready made software is a better idea. One such ready made software for the logistics industry is Logi-Sys. It is an up to date solution which serves as a Cloud Based ERP Platform which integrates all the processes for a logistics player.

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