6 advantages of an ERP in logistics

The importance of optimizing your company's logistics

Good logistics management helps improve the efficiency and effectiveness of companies in the distribution process and supply chain management. It also leads to the reduction of time spent in completing each step of production with the help of information technology and a customized communication system.

Likewise, logistics, like supply chain management, involves the coordination and transfer of resources from a supplier to the desired customer or warehousing facility. It also organizes the entire 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.

That is why using an ERP allows an organization to effectively manage its centralized information flow by combining all business functions into one easy-to-access software. There are many benefits to using this system in various industries, and for logistics, in particular, ERP can be a powerful tool for managing the flow of real-time, day-to-day information that can be accessed by anyone, anywhere.

An ERP for logistics is a key part of an organization, as it can help monitor elements such as inbound and outbound transportation, fleet management, warehousing, material handling, production and packaging, inventory management and asset security. Decision makers, with the help of ERP software, can forecast trends, sales and even delivery times while making the necessary changes in relation to this information.

But that's not all, to learn more about what an ERP can do for your business logistics, we share with you 6 of its most relevant advantages.

6 advantages of an ERP in logistics

1. Improves inventory control

Having complete control over inventory ensures operational efficiency in logistics and transportation. Sales counts, stocks, current orders and deliveries en route are the most important elements to be tracked precisely.

Thanks to the inventory management module of the ERP system, all this information is available to your team in a single dashboard; therefore, no valuable details will be lost. In addition, this software allows you to seamlessly manage incoming and outgoing orders, as well as see which items are out of stock or in stock, generating prompt decision making and effective problem solving.

2. Optimizes human resource management and information security.

Recording and managing the number of hours, leaves, breaks, overtime, accident claims, pay bonuses, insurance, performance evaluations and more for freight operators and other employees can be overwhelming with a traditional, manual system. However, with an efficient logistics ERP, these tasks can be easily automated and simplified, making errors and inconsistencies less likely.

In addition, with a mobile ERP solution you can implement an additional layer of security and have copies of data for each activity under the human resources management department. Not to mention that this software produces employee performance evaluation reports, which facilitates better workforce decisions.

3. Generate a more agile distribution

As already mentioned, an ERP within your business logistics allows suppliers, distributors, drivers and managers to keep an accurate track of their inbound and outbound logistics. This makes the entire logistics operations process smoother and more transparent. They can easily track real-time status, have access to customer details, distributor data and much more. This way, leaders will understand order trends, reasons for any delays and effectively handle customer escalations.

4. Easy maintenance and transportation scheduling

In the logistics and transportation industry, the biggest assets are the vehicles and who is responsible for them. As the logistics network becomes more complex, maintenance and transit scheduling become more complicated to manage. Over time, such complexities in schedule management can greatly hinder the business, cause late deliveries, loss of contracts and bad reputation. Using an ERP makes it much easier for the business to take full and conscious control of the logistics and supply chain. Ultimately, this improves the operational fluidity of the business.

5. Cost reduction

ERP systems can help logistics and distribution areas save money in several ways. For example, by automating purchase orders, ERP can reduce the amount of time spent on procurement. In addition, ERP can help reduce merchandise waste and maintenance costs.

6. Optimal supply chain management

The supply chain management modules of an ERP in logistics allow you to plan, control and execute the processes necessary to support the manufacturing and distribution of finished goods. You may find it more economical to keep certain products stocked in a warehouse than to ship them in advance to distributors. Or you might consider working with a third-party logistics company to expedite localized deliveries. These kinds of important insights will result from the activity analysis your system provides.

Now that you know these advantages, you might consider implementing the use of an enterprise resource management system to manage your logistics area.

Which ERP for logistics is the best?

With so many advanced features and benefits that companies get by integrating an ERP system into their logistics, it generates an acceleration in profitability. With competition in the marketplace becoming increasingly fierce, delaying ERP integration can be costly. But how do you know which software is best for your organization? The main features you should look for in this kind of tools are:
  • Scalability and flexibility
  • Compatibility with mobile devices
  • Recommendations and positive reviews
  • Ease of use
  • Cost of the system adapted to your financial needs
ERP in logistics is essential to integrate all daily business processes and helps the business become more manageable as it grows. It is important that before integrating a platform like this one you make a conscious analysis of your organization's areas of opportunity, as well as its needs and main problems to be solved.