11 Profound Benefits of a Document Management System

As most shipping professionals know today, trucks no longer have manual controls like crank windows or manual seats. In fact, most rigs are becoming increasingly digitized and automated. 

Despite this, many shipping companies are still using manual back-end management solutions, with paper-based management systems and spreadsheets. This creates a digital disconnect between modern shipping fleets and outdated back-end offices and warehouses.

The good news is that shipping companies can close this gap by using advanced document management systems (DMS). With this in mind, let’s take a closer look at how these systems work and the benefits to using them.

What Is a Document Management System?

Simply put, a DMS uses software to share, store, and track shipping forms. 

Document shipping systems typically have mobile components. These enable shipping teams to input data using mobile devices and securely exchange it with managers and colleagues. 

Why Use a Document Management System and What Are the Benefits?

A DMS helps you centralize shipping and customer data and keep teams organized and on track.

By using a document management system, you can reduce risk, improve customer outcomes, and lower costs—all while making it faster and easier for team members to communicate. 

Key Features to Look for in a Document Management System

There are many document management systems on the market, making it difficult to select the right platform. 

Here are some of the top features to look for in a platform. 

Strong Data Security 

First of all, shipping teams need to be very careful before trusting a third-party vendor to manage sensitive customer data. As a result, the right platform should offer robust security features, including visibility into back-end data management and access controls. 

Easy Navigation 

Also, managers should have an easy time navigating the platform. Look for a solution that’s highly intuitive, feature-rich, and easy to use.

Mobile Access

What’s more, the platform should also integrate seamlessly with Android and iOS devices. Managers should steer clear of platforms that don’t come with full mobile integration.

The Top Benefits of a Document Management System

Let’s go through these one by one.

1. Touchless Deliveries 

Shipping companies are now modernizing their operations to improve safety following the outbreak of COVID-19. One of the top priorities across the shipping industry is touchless deliveries. Teams need to reduce contact wherever possible to prevent the spread of germs.

One of the best ways to do this is to eliminate paper forms altogether. That way, drivers don’t have to exchange sheets or use the same pens when signing paperwork.

With a document management system, a driver can simply scan shipping information using a tablet or smartphone when making a delivery. This can prevent at least three people from touching a form—including the receiving party, driver, and warehouse clerk. 

2. Faster Form Processing 

One of the downsides to manual data input is that it can take several days or weeks for information to process. 

For example, a driver has to visit the client, get paperwork, drive back, and drop off the information. After that, they have to wait for an administrator to enter the information into a computer.

Using a document management system, drivers can collect data on the spot and send it to a centralized cloud repository for instant processing. 

By expediting data input, shipping teams can move faster and more efficiently, preventing workflow backlogs.

3. Tighter Security 

Traditional document management systems are highly prone to risk. For example, paper can get lost or manipulated, while spreadsheets can also pose security issues. 

Modern document management systems contain advanced security protocols, restricting access and preventing tampering. As a result, using a digital document management system can significantly boost security throughout the shipping process.

What’s more, enforcing document security and reducing risk are important factors for the U.S. Customs and Border Protection’s CTPAT compliance.

4. Better Communication

Communication is the key to success with shipping. For the best results, information needs to flow quickly and efficiently between drivers, warehouse teams, managers, and administrators.

Further, communication is critical for ensuring a positive customer experience. This, of course, is one of the most essential metrics in shipping today. For example, when a customer receives an incorrect or damaged item, the shipping company needs to process a return request and issue a refund or replacement part. And this process needs to start immediately. 

Using a document management system, team members can transmit and resolve that type of request while the driver is on-site. In turn, the driver can submit the proper documentation and receive an answer from headquarters within minutes. 

This type of rapid response communication can go a long way toward building trust with customers—and ultimately driving profits. 

5. Easier Automation

Shipping companies across the board are looking to expedite back-end workflows using automation. Of course, this is very difficult to achieve when manually transcribing paper forms. 

Document management systems can create a pipeline for data, reducing manual work and providing a framework for automation. This can speed up back-end processes, saving time and money along the way. 

6. Simpler Auditing

Warehouse audits can be a nightmare for disorganized teams. This is especially likely for companies that are using traditional management systems. 

With a document management system in place, administrators can gain instant visibility across their entire operation. A DMS can provide instant data regarding inventory levels, shipments, and outstanding orders. This can save hours of work while ensuring accurate audits.

7. Less Storage 

Another downside to using paper is that it takes up a significant amount of space—especially for large shipping operations with hundreds or thousands of customers. After all, paper needs to get filed and stored for record-keeping purposes.

Switching to a digital document management system eliminates the need for paper storage. All files can be safely stored in the cloud, in on-site servers, or in a hybrid cloud deployment model. 

8. Disaster Recovery 

Shipping companies are at risk from a variety of disasters—including fire, flooding, and weather events such as hurricanes and tornadoes. Companies that rely solely on paper or local storage systems risk losing valuable information in the event of a disaster. 

Document management systems that use the cloud come with full backup and disaster recovery services. This prevents information loss during an unexpected event. If something happens to a local facility, a company can avoid losing valuable data by using a cloud-based document management system.

9. Rapid Payments 

Payment issues are one of the top pain points for shipping providers. Shipping is simply too expensive to continuously front customers and wait for payments. 

A mobile document management system can instantly process forms and transactions. This enables shipping teams to collect money on the spot instead of waiting for orders to clear. 

10. Easy Retrieval 

Managers today need instant access to customer records. Furthermore, records need to be updated as soon as any changes occur. For example, a manager should be able to tell exactly when an item gets delivered and signed over to the client. 

A document management system makes it easy to search and retrieve information. This gives managers instant visibility into customer records.

11. Consistency 

Without a single document management system in place, teams are liable to have different solutions. As a result, documents end up stored across various locations—creating confusion and increasing risk. 

A document management system can help your organization’s version control efforts, ensuring that all teams are up to date and using the same documents at all times.

Transforming Document Management With Vector

With Vector, a driver can simply launch an app at the point of delivery and have instant access to a custom mobile form. After that, the driver can scan all supporting documents into the app, where they are securely transmitted to a centralized cloud database.

Also, Vector integrates with third-party transportation management systems. As a result, the software can pull invoices and supporting documents and automatically invoice around different customer preferences. What’s more, Vector is completely customizable and capable of working with leading programs, such as TMW, McLeod, Tailwind, 3Gtms, and GTG Technology Group, among others. 

By working with Vector, shipping companies can implement end-to-end document management without indexing or keyboard entry. 

And best of all, Vector makes the process easy for drivers by prompting them to upload specific documents. This eliminates guesswork and reduces risk during deliveries. 

Next Stop: Efficiency 

It’s time to step on the gas and stop delaying digital transformation. By investing in Vector’s purpose-built solutions for shipping companies, your organization can overhaul and optimize your approach to document management.

For more information, check this out.

This post was written by Justin Reynolds. Justin is a freelance writer who enjoys telling stories about how technology, science, and creativity can help workers be more productive. In his spare time, he likes seeing or playing live music, hiking, and traveling.