The Benefits of ERP in Logistics
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The Benefits of ERP in Logistics
What is an ERP system?
An
Enterprise Resource Planning (ERP) system allows an organisation to
effectively manage its flow of information in a central hub by combining
all business functions in an easily accessible software feature. There
are many
benefits to using an ERP system
across various industries, and for logistics, in particular, ERP can be
a powerful tool to manage the flow of daily information in real-time
data, that can be accessed by anyone, anywhere.
A breakdown of logistics
Logistics, much like Supply Chain Management,
involves coordinating and transferring of resources from a supplier to
the desired customer or storage facility. Where Supply Chain Management
looks more at outside organisations working together to deliver the
desired product, logistics is a more holistic approach within a specific
company. Logistics
looks at the whole process - from the purchase and delivery of raw
materials, food and liquids, to the packaging of products, and the final
transportation of goods to customers.
Some of the components of a logistics company
- Inbound and outbound transportation
- Fleet management
- Warehousing
- Materials handling
- Production and packaging
- Inventory management
- Security of goods
How an ERP system can assist logistics
An
ERP system can assist logistics companies in managing their company
more effectively, helping to reduce risks and company costs. Some of the
ways that an ERP system can benefit a logistics company include:
Inventory control
With
ERP software providing for one centralised system, all information
required to run a logistics company can be captured in one place -
including orders, inbound and outbound sales, deliveries and more. This
captured information allows the company to make informed decisions and
future predictions for the company based on historical data that the ERP
system provides. The decision-makers can look at previous sales trends
or delivery times and make changes where necessary based off of this
information.
The real-time data allows immediate notification of
out-of-stock products, inbound orders coming in, outbound orders that
need attention, and any problems with deliveries as they occur.
Distribution
The
distribution side of a logistics company is one of the most important
aspects of the business, as it involves precise management of the flow
of distributions and control over the transportation of goods.
An
ERP system provides the solution to manage the flow and distributions
effectively by gathering all the necessary information in one central
hub.
For transportation purposes, the ERP system can manage the
transportation of goods, ensuring customers and suppliers receive their
products on time. The system also allows for live communication between
the drivers and coordinators, sending live traffic updates, customer
addresses, and any emergency information, such as transportation issues.
Staff management
Managing staff can become quite tricky,
especially within a logistics company, where staff can be in various
places around the country or even the world. Staying on top of staff
responsibilities and whereabouts can be difficult, but with an ERP
system in place, managing staff is made easy. Some of the ways managers
can benefit from the ERP system with regards to the staff, include:
- Employee working hours and lunch breaks/rest periods
- Employee information and paperwork
- Tracking staff on the road during transportation
- Payroll and staff increases and bonuses
- Staff performance
- Sick and paid leave days
- Managing casual and permanent employees
- Providing a list of backup staff members or casual employees in case of an emergency.
Customisable system
Most
logistics companies will have specific ways in which they run their
business, running personalised software options to match the needs of
the business. An ERP system allows each company to personalise their
system to benefit them and run their company data in the most accurate
way.
Reduced costs
The accurate, real-time data that an
ERP system provides allows companies to reduce their monthly expenses,
being able to make informed decisions quicker and more accurately. By
not having to wait for information and feedback, the decision-makers in
the business are able to attend to issues or make changes where
necessary as soon as possible, before it becomes a huge expense to the
company. This allows the logistics company to maintain and increase
productivity monthly.
Customer satisfaction
The ERP
system provides a detailed analysis of each customer and a record of all
their information, allowing the company to build personalised
relationships with customers. The real-time data also reduces the risk
of mistakes, delayed deliveries, and unfulfilled promises to customers.
Logistics
plays an essential role in the running of a country, by providing a
streamlined approach to the design, production, purchase,
transportation, and storage of goods to various businesses. The more
streamlined the logistics company can be, the more profitable it becomes
for not only themselves but their customers as well. Using an ERP
system, for this reason, is hugely beneficial to all stakeholders
involved in logistics.
Contact Omni Accounts for help on getting your logistics company up to speed with the latest ERP software, to help streamline your business.
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