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How Logistics Companies can ensure Smooth Cash Flow

Posted on 19 September, 2024 by Keith McKinley

Logistics firms can achieve smooth cash flow in peak periods, writes Pascal Chandler (pictured), business consultant at cloud-based accountancy software, bluQube

As the logistics industry gears up for the golden quarter, companies are focused on readying their operations to meet increased consumer demand. This period is vital for the sector, requiring meticulous planning in inventory management, workforce consolidation, and supplier coordination. However, while many companies are well-prepared on the operational front, an often-overlooked aspect is the robustness of their financial systems.

During peak retail periods, logistics companies encounter a surge in order volumes, fluctuating costs, and tight deadlines. Without an efficient and adaptable financial system, these pressures can quickly escalate into significant challenges, affecting both operational performance and financial health.

With that said, let’s assess how logistics companies can leverage financial technology to streamline their financial processes and ensure they are fully prepared for the demands of the golden quarter.

The financial strain of peak periods

The peak sales season presents unique financial challenges for logistics companies. The surge in consumer demand leads to higher transaction volumes, increasing the complexity of cash flow management. Companies must navigate rising operational costs, from fuel and wages to additional staffing and overtime pay. At the same time, they face the risk of delayed payments from customers, which can strain cash reserves and disrupt financial planning.

For companies relying on outdated or manual accounting systems, these challenges are even more prominent. Such systems often lack the agility needed to process large volumes of transactions quickly, leading to bottlenecks in invoicing, payment processing, and financial reporting. In contrast, adopting a cloud-based accountancy system can provide logistics companies with the tools they need to manage these challenges more effectively, ensuring smoother operations and better financial outcomes.

Automating invoicing to improve cash flow

One of the most significant advantages of cloud-based accountancy software is its ability to automate invoicing processes. During peak periods, the volume of invoices sent and received can overwhelm manual systems, leading to delays and errors. These issues not only hinder cash flow but can also damage relationships with suppliers and customers.

Automated invoicing streamlines this process by ensuring that invoices are generated and sent promptly, reducing the risk of errors and delays. For logistics companies this is particularly important, as they often deal with multiple vendors and transport partners, each with its own payment terms. Automated systems can also send out reminders to customers about upcoming payment deadlines, helping to minimise the risk of late payments and improve overall cash flow management.

Moreover, cloud-based systems enable businesses to receive purchase invoices from suppliers via email. Advanced features like optical character recognition (OCR) can read and automatically enter invoice data into the system, further reducing the administrative burden on finance teams. This automation not only speeds up the invoicing process but also frees up staff to focus on more strategic tasks, such as financial forecasting and cost management.

Real-time expense tracking and financial visibility

In addition to invoicing, cloud-based accountancy software offers powerful tools for tracking expenses in real-time. For logistics companies, which face a wide range of daily expenses – from fuel and vehicle maintenance to warehousing and labour costs – keeping a close eye on spending is crucial. By automating data entry and categorisation, these systems help finance teams quickly identify any areas of excessive spending that could impact cash flow.

The real-time nature of cloud-based software also means that financial data is accessible anytime, anywhere. This is particularly beneficial for logistics companies with operations spread across multiple locations, as it allows for seamless expense tracking and financial management across the entire organisation. The result is a more comprehensive view of overall spending, enabling better decision-making and more effective cash flow management.

Enhancing agility with real-time reporting

The ability to generate real-time financial reports is another key benefit of cloud-based accountancy software. In an industry where economic conditions can change rapidly, having up-to-date financial information is critical for making informed decisions. Real-time reporting allows logistics companies to monitor their cash flow closely, adjust their budgets as needed, and plan for different scenarios.

With detailed cash flow statements and reports, companies can categorise their transactions into operating, investing, and financing activities, giving them a clearer picture of their financial health. This level of visibility supports more accurate forecasting and long-term planning, ensuring that logistics companies remain agile and responsive to any challenges that arise during peak periods.

As logistics companies prepare for the demands of the peak sales season, it’s essential to ensure that their financial systems are up to the task. By adopting cloud-based accountancy software, companies can streamline their invoicing processes, improve cash flow management, and gain real-time visibility into their financial performance.

These benefits not only help companies navigate the challenges of peak periods but also position them for long-term success in an increasingly competitive market. With the right technology in place, logistics companies can enter the golden quarter with confidence knowing that their finances are in good hands.

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Data-driven Decisions for Flexible Supply Chain

Data-driven Decisions for Flexible Supply Chain

Posted on 12 February, 2024 by Keith McKinley

The pandemic, Brexit, ongoing geopolitical conflicts, and rising inflation have placed unprecedented pressure on the global logistics industry. Soaring material costs, wavering customer demand, and disrupted shipping patterns are just some of the challenges businesses are continuing to face as a result.

Against a backdrop of such unpredictability, flexibility and adaptability remain crucial for logistics businesses. It enables them to better adapt to unexpected shifts in market conditions. While some businesses have sought to nearshore manufacturing operations or diversify suppliers in an attempt to wrestle back some control over the uncertain landscape, many neglect to consider how internal processes could hold more of the answers.

Although back-office accounting systems are rarely a focus for logistics leaders, modern cloud finance platforms can knit seamlessly together with other fundamental business systems to provide valuable features and insights. It can equip teams with better, more comprehensive data that can be used to make meaningful business decisions to maximise flexibility and opportunities for growth.

Strategic stock management

One of the crucial areas in which businesses can leverage data to enhance flexibility is stock management. Interoperable accounting systems can interact with, and share information across, other mission-critical programmes from third-party providers, including inventory management, to bring all the crucial data in one place. Stock levels can be scrutinised alongside financial and operational data in real-time so inventory can be scaled up or down strategically. This data-driven strategic stock management can help reduce the amount of money being held in stock that’s not being required at the expected rate, or unlikely to be used soon. This can free up the budget to be reallocated elsewhere, allowing logistics businesses to accommodate new priorities quickly.

Increased visibility and real-time reporting

Logistics managers need access to a detailed and up-to-date breakdown of costs to help inform decisions across the business. Interoperable systems automatically replicate data across systems, eliminating the need for error-prone rekeying or manual reporting and allowing users to easily extract relevant data. They can see cost data across different areas, including warehousing, labour, fuel and shipping, to evaluate spend and take fluctuating prices and market conditions into account. This granular visibility allows managers to quickly identify over or underspending, inefficiencies, and unnecessary expenses. They can then quickly and easily reallocate funds where they’re needed most. This visibility allows businesses to keep their fingers on the pulse of changing conditions and act quickly to maximise opportunities.

Greater insight also brings benefits to cash flow and helps teams ensure there’s enough liquidity to meet operational needs. With constant moving parts and continuous billing and payment cycles, managing all the moving parts can be a challenge. Yet, this data-driven insight, enabled by a centralised cloud finance platform, allows businesses to plan more effectively for unforeseen expenses or take advantage of opportunities that require quick financial action.

Streamlining operations with enhanced activity insights

With a comprehensive view of key operational information across the business, logistics leaders have all the information they need to optimise operations and streamline processes at their fingertips. It can help identify frequent sticking points or inefficiencies across the business and equip the business with the data they need to take effective action. Frequent errors in manual order picking, for example, and the knock-on impact on business finances, could indicate the need for new automated technology that would quickly overcome challenges. This means resources can be adjusted accordingly, with employee time and effort being reallocated to more strategic and fulfilling business activities. This insight and data can be leveraged with individual expertise to deliver a better overall business outcome.

Final thoughts

The data and insight offered by modern, interoperable cloud financial systems provide a more granular and accurate picture of what’s going on in the business, the data-based evidence to make strategic changes, and the ability to identify and mitigate risks early on. This agility is crucial in adapting to rapidly changing market conditions, unexpected disruptions and new opportunities. While there’s a hope that the geopolitical landscape will settle somewhat in 2024, the businesses that take full advantage of their accounting software and operate with good visibility, control and flexibility will be better placed to weather the storm.

By Pascal Chandler (pictured), business consultant at cloud-based accountancy software bluQube

Gaining Marginal Advantages in Logistics

Posted on 24 January, 2024 by Keith McKinley

Few industries understand the importance of efficiency as profoundly as supply chain and logistics operators. In fact, the entire business model hinges on eking out incremental enhancements that collectively yield substantial benefits, say BluQube.

Numerous strategies in the logistics sector, such as reverse logistics, process automation, inventory management, and technological innovations, are widely acknowledged and documented.

Yet, for all the focus on operational effectiveness and efficiency, non-core back-office functions like accounting systems often receive less attention. Here a more ‘make-do’ approach can prevail which runs counter to the DNA of organisations that rightly have inefficient practices in their crosshairs.

Logistics companies’ accounting function today extends beyond the mere handling of invoices and billing. Just as sophisticated logistics software provides managers with comprehensive insights into the supply chain, modern accounting software offers a holistic view of operational data. This can be invaluable in equipping organisations with the necessary insights to react promptly and identify efficiencies that can help mitigate ongoing challenges.

Unleashing Resources

Just as the finance department never operates in a silo, financial software needs to be able to work with the necessary programmes and processes to be truly effective. Interoperable software streamlines information exchange with third-party providers, eliminating the need for manual integration and significantly saving time. Inputting information once automatically replicates it across all organisational systems, reducing data discrepancies and time-consuming tasks. This efficiency proves vital for overcoming challenges posed by disparate systems, contributing to the overall health of logistics organisations in times of shortages and heightened competition.

Automation and Employee Satisfaction

Interoperable systems, like any form of automation, liberates employees from monotonous or formulaic tasks, fostering job satisfaction and fulfilment. This liberated time allows organisations to reallocate resources to more strategic areas, enhancing overall productivity.

Empowering Data-Driven Decisions

Effective interaction with data from various business areas transforms financial software into a powerful performance insight and decision support mechanism. It aids in identifying production roadblocks and extracting broader business information for flash reports, saving considerable time compared to manual data collation and report writing. Organisations embracing this approach gain valuable insights that inform their strategy, giving them a competitive edge over those with siloed systems.

Futureproofing Amid Uncertainty

In a world of geopolitical and economic uncertainties, where demand fluctuates rapidly, crafting the ideal supply chain can be daunting. However, system interoperability plays a pivotal role in supporting organisations’ agility and flexibility. It facilitates seamless integration of new automation solutions into existing networks, enabling data sharing without the complexities of merging disparate systems or dismantling existing infrastructure.

As interoperability gains traction in the realm of logistics software and automation solutions, organisations gain the freedom to curate their warehouse or logistics infrastructure from a diverse range of specialised providers, ensuring that each component meets its unique requirements. This approach contrasts with generic solutions that often fall short in functionality and performance.

This enhanced level of customisation and choice fosters a more resilient and adaptable supply chain, allowing organisations to respond promptly to demand shifts, seamlessly integrate new technologies, and optimise operations across the entire supply chain. System interoperability empowers businesses to navigate the complexities of modern logistics with agility and resilience.

Marginal Advantages

While interoperability may not be a groundbreaking software function, its growing significance in addressing challenges and enhancing efficiency is undeniable. It eradicates data silos, liberates staff, improves visibility, and transforms performance insight into a robust decision-support mechanism. Professionals seeking system upgrades should prioritise interoperability and future requirements, recognising that even small changes can yield significant impacts in the quest for logistics efficiency.

Driving Logistical Efficiencies with Finance Software

Posted on 7 August, 202331 July, 2025 by David Priestman

The requirement to maintain operational logistical efficiencies has long placed the logistics industry at the forefront of technological advancement, writes Simon Kearsley (pictured), CEO of bluQube. Inventory management technology and process automation has transformed supply chain operations, but recent economic uncertainties have illustrated that these practices aren’t enough to combat logistical challenges.

Non-core back-office functions, like accounting systems, have typically been overlooked in their ability to boost efficiencies. Far from a small cog in the machine, accounting functions today play a greater role than handling quotes, billing, and invoicing. In fact, accounting systems can generate invaluable insights for organisations to respond to rapidly changing circumstances.

Solving resource constraints

Interoperable accounting software interacts with third-party software without the requirement for human intervention. It enables optimal resource reallocation by allowing information to automatically replicate across every system throughout the organisation and preventing hours of manual rekeying efforts. Automated invoicing, payroll, and expense tracking is key for minimising data silos and discrepancies within supply chain operations and reducing the risk of errors. This efficiency translates into time and effort savings whilst providing employees with greater opportunities to add strategic input to the business.

Data-led reporting

The dramatic rise in freight costs poses an ongoing challenge to logistics operators, and without the right accounting software, fluctuations in transport expenses, warehousing fees and fuel costs can be difficult to navigate. When combined with other software, such as warehouse management systems, finance software can become a powerful reporting tool to enhance the decision-making capacity of logistics businesses and identify areas for cost-saving opportunities. To manually produce and analyse reports of this scale would usually take significant employee resource, but the automated process allows employees to extract the relevant information and streamline inefficient processes.

Responding to future challenges

As we have seen over the last three years, it is impossible for logistics operators to prepare for all eventualities. However, the introduction of interoperable systems would award businesses a greater degree of flexibility to respond to supply chain challenges as they arise.

Interoperable accounting software can produce a real-time data exchange by seamlessly integrating with systems crucial to the logistics operation, such as inventory management and transportation systems. In doing so, it provides a comprehensive view of the supply chain’s financial health and allows businesses to identify bottlenecks, track inventory levels accurately, and make informed decisions promptly in response to market demand.

Preparing for volatility

Geopolitical and economic instabilities have demonstrated an alarming ability to place supply chains into a state of disarray. As this disruption is aggravated by a lack of visibility and an inability to respond to demand fluctuations, many logistics businesses are prioritising the implementation of methods to increase efficiencies and respond to fluctuations as they arise.

Interoperable accounting software is becoming increasingly important for logistics businesses to achieve this goal. The financial data gathered allows them to gain critical insights to spot trends or opportunities within the supply chain, whilst minimising data silos and freeing staff to take on more strategic roles. For a back-office function, it can create powerful results.

3PL Cost Savings with Cloud Accounting

Posted on 26 July, 202331 July, 2025 by David Priestman

Cambridgeshire, UK based warehouse and distribution specialist Brett’s Transport has invested in new cutting-edge cloud accounting software to improve visibility and efficiency across operations and reduce its reporting admin, a move which will save approximately one week of manual data entry every month.

Cloud accounting software, bluQube, will integrate with Brett’s Transport’s other back-office systems to allow greater visibility across the organisation and enable the development of a flash reporting function to compare weekly performance against KPIs.

Prior to the investment in bluQube, Brett’s Transport was using a basic account system that managed basic invoice processes and operated in silos to other systems within the business. The dated system was time intensive and required staff to manually key in data, match invoices and chase payments.

In its place, the finance team was looking for an easy-to-use finance system that would accommodate its broader reporting requirements across activity both in and outside of the finance system – a process that was previously being done manually on spreadsheets.

bluQube will handle and automate more of Brett’s Transport’s accounting processes. The interoperable system allows the team to bring sales ledger data across from its WMS to bring invoices into bluQube to automatically create customer statements and automate the payment chasing. It then reconciles what’s been paid and received and posts it accordingly – another process that was managed outside of its previous system spreadsheets.

In addition, the team at bluQube is developing a solution to enable Brett’s Transport to pull wider business information into the software application so it can produce flash reports across current performance and make comparisons to the business’ KPIs. This data extraction, analysis and reporting automation will save Brett’s Transport approximately one week per month in the time it was previously taking for a member of staff to manually collate the data and write the reports.

James Cook, finance director at Brett’s Transport, commented: “bluQube ticks all the boxes in the finance and accounting processes we need it to handle, and much more. The ability to report on information not currently held in the finance system was a key decision factor for us, but ultimately it was the user-friendliness of the system and the team at bluQube that was the deal breaker in our decision to progress. We liked bluQube’s people-first approach and see great synergy between the two companies.

“We already have confidence in the software to let it take on many of our crucial finance and reporting processes and make key decisions. Once bluQube is implemented and up and running we look forward to exploring some more of its features and functionality, including OCR and automated workflows on the purchase ledger for incoming invoices. It’s going to be transformational for our team and the wider business.”

Nicky Wilkins, head of customer engagement at bluQube, commented: “We look forward to working with Brett’s Transport to implement the software and see the efficiencies and time savings it achieves, as well as the impact of greater data visibility and strategic insight. On top of bluQube’s interoperability and wide-ranging capabilities, the people aspect and maintaining strong business relationships is our key differentiator and it’s encouraging to have this recognised by James and the team.”