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Importance Of Integrating ERP Systems In The Logistics Domain

Thursday, 20 February 2020, 05:26 Hrs

Logistics industry is one of the most well established and well structured industries in the world. Without the help of proper logistics, almost all the other industry verticals will be adversely affected. With various facets to look into, the logistics domain is also one of the most complicated and hard to handle businesses out there. With a plethora of companies operating in the sector on a daily basis, the competition to prevail in the market is also increasing. Companies are trying everything to increase their market share and put some clear daylight between them and the rest. Like many other industries, technology can be used by logistic businesses to leverage their growth opportunities. One such technology that has been revolutionizing the logistics domain is ERP systems. Proper ERP integration will allow businesses to streamline their business operations and make the company run efficiently and effectively. ERP for logistics industry will also allow organizations to make optimum use of their available resources and with that develop a proper logistics management system. There are various other factors that make ERP an essential tool that improves each and every facet of the logistic business operations and some of them are:

1. Increases Security: ERP software has a customer/vendor portal that enables both the parties to login to the system safely and securely. After the login, the parties can easily look into the status of all the various logistics and this will also help companies and their customers to have smoother communications that in turn increases the overall efficiency of the logistics operations. With ERP, the information’s will also be updated through email or SMS which will remove all kinds of miscommunications.  

2. Optimizing Inventory Management: Inventory control is an essential facet of the logistics operations. ERP allows companies to not only have control over the inventory but also allows the company to have a detailed look into the orders, deliveries, and sales and thereby have an effective inventory tracking system. The ERP system also allows organizations to do all this from a centralized location which reduces the complexity of the entire operations. This will also help companies to look at their inventory level and reduce the chances of over-stocking or under-stocking.

3. Effective Maintenance: In the logistics business there are various assets and infrastructure to cater to. Even if one fails, it will affect the entire operations of the business. ERP allows the companies to have a complete birds-eye view over the situation of the assets and schedule accurate maintenance according to its performance. This will also help businesses to use their assets to the maximum and reduce unwanted expenses they might face for repairs and replacements.

4. Improvements in the Overall Distribution: Another key advantage of using ERP system in the logistics business is that it speeds up the entire distribution process. It brings every party included in the operations such as the drivers, suppliers, retailers, and distributors onto the same page. ERP does this by giving real-time info to the various parties regarding the flow of the inventory. This will also help companies to quickly adapt to the changing requirements and thereby making the entire operations more flexible and agile.

5. Improved Workforce Management: ERP has yet another neat trick up its sleeve and that is proper employee management. ERP helps the employees to manage their work hours much more effectively and the supervisors can track their employee performance accurately. ERP will also allow organizations to create an exact employee attendance and performance record that will help them to fix the payrolls and other bonuses for their employees.

ERP software for the logistics business will provide the companies with detailed information regarding their business operations that the companies can use to see the actual state of the operations. After identifying their weaknesses and the glitches in their operations, ERP systems will also allow companies to create a business framework that suits their operations.