The Role of ERP Systems in the Logistics Industry

  • We all know that the logistics industry forms the backbone of commerce and supply chains in this globalised market. Over the past few decades, the growth in the logistics and transportation industry can be visible by everyone. Behind the scenes, ERP systems have played a vital part in the logistics industry, helping them to handle constant changes in costs and other aspects via automation. 

    How Beneficial is an ERP System for The Logistics and Transportation Industry?

    The logistics and transportation industry includes a myriad of different activities, not limited to transportation, warehousing, storage, maintenance, dealing with real-time data and freight management.  ERP software for logistics industry assists with integrating all the major attributes of a company under a single comprehensive user-interface.

    Control and Visibility over Stock: Having complete control over inventory is of utmost priority to ensure operational fluency in any logistics and transportation company. Four main aspects should be watched at all times: current requests, stocks, sales tally and current deliveries. Traditionally, management had to use different tools to retrieve the data separately. But with the help of a stringent ERP system, all information about the above aspects can be brought under a single comprehensive platform. This results in faster decision making when it comes to placing orders or dispatching.

    Improving Staff Management: The logistics industry involves maintaining detailed records of the work hours of freight operators and also keeping an eye on break times, leaves, overtime, payment bonuses, performance analysis, accident claims and insurance, just to name a few. All of this information can be converted to automated modules with the help of the right ERP system. Employers can easily access ready-made reports pertaining to an employee’s performance upon request, leading to better workforce decisions.

    Improving Distribution management: To increase distribution times and enhance distribution channels, ERP systems can be programmed to fetch data from social media, in-house historical data and customer reviews to improve the delivery process.  With the help of the right system, all the different parties including distributors, delivery partners, suppliers and retailers can achieve effective co-operation and co-ordination.

    Improved Governance: GPS is used to track vehicles in transit. ERP systems can integrate such systems using valuable business intelligence and advanced location features. This increases overall customer support, allowing businesses to leverage real-time accurate data.

    Scheduling Maintenance:  Assets such as the vehicles used and other parts of the infrastructure are required to be maintained without fail.  Failure to do this promptly will eventually harm the productivity of the business itself.  On the other hand, management can schedule maintenance sessions directly from the comfort of their ERP user-interface in an effective manner.

    Conclusion

    Integrating an ERP system in the logistics industry has many advantages., especially in a market where cut-throat competition exists at every corner. A delay in ERP implementation can in turn cost organisations a lot of money. ERP systems, thus work to streamline the services of logistics companies, which both the companies and their customers profitable.