How ERP Software Can Improve Your Logistics

Logistics erp

Logistics management software is prominent in the orderly day-to-day functioning of any organization with specified supply chain-related activities. Efficient tools to manage logistics are imperative to manage manufacturing and distribution businesses and e-commerce and retail enterprises.

From streamlining your end-to-end distribution and delivery processes to micro-managing various logistical operations such as acquiring digital signatures, documenting and tracking activities, and granting personnel access, an ERP software does it all. In addition, a well-thought-out ERP is crucial in ensuring sustained customer satisfaction metrics.

What is logistics management, and how does ERP come into the scene?

Although many believe logistics management to be a process under supply chain management, we believe such a hierarchy is not always accurate. Even though planning, procuring, and coordinating materials are central to logistics and supply chain management, the needs of modern businesses are more complex.

Logistics management consists of several disparate activities and processes that streamline the product’s journey from manufacturing to consumption by customers.

Many of them, such as distribution and material movement, have gone digital in recent years. For example, reverse logistics and returns management are essential processes within the e-commerce space.

Here is a quick look at how an ERP platform can improve your logistics:

1. An integrated distribution and logistics module

An ERP helps simplify multiple complex business processes, providing real-time insights that help organizations better manage their supply chain processes. ERP delivers complete visibility of logistics operations, from the production line, shop-floor and warehousing to products delivery and returns.

An ERP is particularly important if you are in the wholesale business. It provides various tools that make purchase planning and requisitions a breeze. A dedicated ERP solution also helps you effortlessly get through importing and exporting processes.

Note: Reverse logistics includes removing unnecessary materials from the production line, managing returned products, and offering refunds.

2. Real-time business insights

An ERP is designed to provide seamless tracking and advanced visibility tools. At a glance, you can comprehend the status of various logistics-related processes such as manufacturing, stock, warehouse, and orders. In addition, an ERP comes with crucial modules that help you generate sales analysis reports and demand forecasting. As a result, you can ensure that your stores or warehouses are always appropriately stocked in sync with consumer demand. Modern ERP platforms allow real-time access to these insights on any desktop or mobile device.

ERP makes tracking your shipments easy with integrated shipment management solutions. For instance, Priority ERP comes integrated with ShipEngine, a multi-carrier shipment platform for e-commerce stores, warehouses, and distributors.

Fleet Management and Warehouse Management System (WMS) are often built-in. In addition, advanced ERP solutions are equipped with Business Process Management (BPM) modules that help you set up logistics-related rules, processes, and conditions specific to your business needs.

3. Manage expenses and enhance compliance

Advanced ERP systems often integrate end-to-end automated payment solutions that help optimize cash flow, streamline payment processing, eliminate costly errors decrease time, resources, and headcount costs.

An ERP helps you reduce wasteful expenditure by streamlining various business processes and maintaining accountability by ensuring compliance with regulations to assure product quality and strictly adhere to sourcing protocols, a crucial factor in manufacturing units.

For efficient logistics management, an ERP is an answer.

An ERP platform is an excellent tool to manage logistics, regardless of the kind of business you operate. From large-scale manufacturing units to boutique retail stores, accurate and efficient logistics management is key to increasing customer satisfaction and profitability. An ERP automates various supply chain-oriented tasks that increase transparency, accountability, and customer satisfaction.

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The Author
Dan Aldridge
Director of Consulting, Priority Software U.S.

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