Supply Chain Management

Benefits of ERP for logistics management process

Thursday April 6, 2023
7 min read

ERP: the benefits of this software for logistics and operations

How can a company create synergy in all areas of the supply chain logistics? An ERP is an indispensable program for today's business logistics. Its benefits increase the profitability and growth of the entire business.

Enterprise Resource Planning (ERP) is a group of information systems with which a company can integrate its operations, especially those related to logistics and production. It is also a central program or a centralized database that allows the successful management of smaller companies.

All of this provides more than one advantage for the company: supporting customers, solving problems quickly, reducing transport times, better data management, reducing costs, etc. No matter what sector the business belongs to, ERP substantially improves the work in supply chain management. But what other important benefits does it provide?

How ERP Improves Logistics

  • A supply chain logistics ERP creates business synergy. This is a vital element for the growth of any type of organization starting with supply chain management.
  • Automated supply chain management controls demand with greater accuracy. It employs a database of historical information, trends, behavioral patterns, customer habits and more. This provides effective forecasting and estimating capabilities.
  • ERP for logistics matches inventory to the various stages of the supply chain logistics. With this, it is possible to avoid problems or risks of demand shortages or excessive stock.
  • Sound supply chain management reduces warehousing costs. It achieves this by better managing processes with suppliers or supply companies.
  • ERP for logistics provides constant and fluid access to information from all levels of the logistics chain. All the professionals in charge of it can work in an integrated and collaborative way. They have real-time access to this information, which promotes better decisions.
  • Correct supply chain management reduces transportation costs. Internal customers have a better data center in which to operate. This increases delivery reliability and timeliness with end customers.
  • ERP for logistics increases return on investment. The implementation of an ERP system is done through a company or professional specialized in it, but the estimated investment, with all these benefits, is very profitable for the company.

The integration and unification of logistics information (finance, sales, manufacturing, production, transportation, packaging, distribution, etc.) allows the automation of all processes. An ERP for logistics eliminates complex operations that until now have taken time and resources away from the organization, promoting its development.

Get to know the advantages of an ERP for logistics – supply chain management ERP software

These systems are a valuable tool that provide companies with data on all the processes that occur during the supply chain management stages and are an essential solution for logistics companies wishing to streamline inventory control, improve distribution processes and manage personnel more efficiently.

An ERP management software for logistics is specially developed to carry out a correct management of processes related to warehousing, transportation, inventory control or traceability of orders within the logistics cycle of any company.

The rapid advance of logistics 4.0 is driving a digital transformation in companies, which are becoming increasingly global and therefore need a new way of managing the set of activities that make up the supply chain logistics. Software such as ERP logistics is the tool you need to achieve this, as it integrates, controls and automates most of the processes related to the production and distribution of products or services.

How to choose an ERP management software for logistics

Before choosing an ERP for logistics you must take into account a number of aspects:

You need to change the mentality and work methodology. You must convey the need for change to your entire team so that they are aware that an ERP not only involves a change in the company's management processes, but also requires a change of mentality on the part of all workers who will use the software.

Then you need to specify the business needs. It is necessary to write a document in which all the management needs are specified, the objectives you want to achieve and the budget you have to carry out the implementation of an ERP management software for logistics.

The next step is to search for a logistics ERP software. Once you have established the needs you have to cover, you must start the search for an ERP software that meets your requirements. There is a wide variety of logistics ERP systems in the market, for this reason it is convenient to compare each of its features and functionalities and select the one that is able to meet your management needs.

Select a technology consulting company. It is important to choose an IT consulting company (in the case of Microsoft, choose an Inner Circle partner) to take charge of the ERP implementation project for logistics companies.

Key features of a supply chain ERP solution

Although it is a priority that when choosing an ERP for logistics you take into account your needs, this software should also include some basic functionalities, which are the following:

Warehouse and order management

Software such as ERP logistics must be able to effectively manage all the operational activities that take place in the warehouse, such as the organization of items by availability criteria – multi-location – or the picking and packing processes.

Inventory control

Supply chain ERP must allow to know you in detail all the merchandise that is in the warehouse, as well as its typology and available units, in order to offer the customer a service with guarantees. The inventory analysis helps you to know why there are differences between what the system informs you that you have in the warehouse and what is actually in it.

Traceability control

Thanks to a supply chain ERP for logistics you can manage the traceability of your orders in real time and throughout the life cycle of the product, thus ensuring the correct delivery through expiration date controls by batches, the consultation of the history of sales and purchases by batches or the control of the history of movements between warehouses.

Fleet and traffic management

A supply chain ERP software for logistics helps to manage the vehicle fleet (technical data sheets, repair control, consumption per vehicle, etc.) and to control customer orders and load reports.

Benefits of ERP software for managing logistics

The benefits of having ERP logistics in your company are many and diverse. Here are some of the most important ones:

Optimization of inventory control

With supply chain ERP, inventory can be managed in a customized dashboard where you  can check orders, sales and deliveries from a single centralized location. Supply chain ERP allows for better decision making, as you can make predictions about future orders based on past sales trends while speeding up distribution times. All supply chain ERP solutions incorporate real-time data analytics that provide companies with valuable information. This enables out-of-stock situations to be detected instantly, supplier orders to be managed and customer orders to be executed.

Improved distribution

An ERP for logistics improves distribution management, from the time the product is manufactured to its final transport to the customer. The tool, which is a supply chain ERP, collects data from multiple sources and displays the information through maps, tables and graphs. This data improves the handling and delivery of goods to ensure that customers receive their orders on time.

Personnel management

Manage employee working hours and breaks, scheduling times, managing absences and reporting on staff performance. In addition, it backs up employee data such as payroll, contracts, attendance records, etc.

Increased productivity

Supply chain ERP software for the logistics sector helps companies improve the productivity of all their departments and minimize possible errors in daily management.

Increased competitiveness

By being able to manage warehouse operational processes with greater ease, accuracy, speed and at a lower cost, our competitive advantage will increase.

Increased customer satisfaction

You will be able to know in greater depth the needs of our customers and be more proactive thanks to data storage and access to history. In this way you will be able to improve customer loyalty, increasing conversion rates.

Microsoft Dynamics 365 Finance & Supply Chain Management used in the logistics sector

Thanks to the MS Dynamics 365 Finance & Supply Chain Management solution and its ecosystem of connected solutions, you can have a software 100% adapted to your needs with which to optimize the management of your company and warehouse.

MS Dynamics 365 Finance & Supply Chain Management is a powerful supply chain ERP management software for logistics that allows you to:

  • Carry out a control of outgoing and incoming goods.
  • Integrate with transport companies.
  • Carry out partial or total inventories.
  • Carry out the dispatch of goods and calculation of optimized routes.
  • Picking by light and/or voice and with different criteria (LIFO, FIFO…).
  • Heat mapping and movement analysis to control any item.
  • Control purchases, sales, stocks, and location of goods.
  • Control the total traceability of the product.

In this way you can have the stock always controlled and updated while ensuring effective management in warehouses in different locations and optimizes the productivity of our warehouse and the quality of work.

At XPLUS, we have the solution to optimize your distribution and logistics processes that gives you more visibility, control, and efficiency in your company and in your warehouse. If you still don't have 100% control over the traceability of your products or simply want to optimize your warehouse management, we offer you the best technology to achieve it.

As a Microsoft Inner Circle Partner, we implement the MS Dynamics 365 Finance & Supply Chain Management solution, adapted to your supply chain management needs, to manage your entire business with reliable and real-time information.

Learn more about Microsoft Dynamics 365 supply chain management.

We are proficient in solving complex tasks and challenges.

Our goal is an efficient response to unique customer needs. Our field of expertise is the implementation and development of solutions tailored to the specifics of dispersed, multinational organizations. We will be happy to help your business.

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