Every business has its own set of methods, products and services that makes it different. Considering the Shipping and Logistics industry is one of the largest growing industries in the world & over 90% of transportation and trade is carried via shipping and logistics. Without shipping and logistics, import & export of bulk goods & amenities across the world is not possible.
However, such a huge business faces similar operational problems and challenges as they grow. Change has made numerous companies fail to adjust and reach their purposes. In their daily routine costs like Labour cost, Material cost, Freight cost, Fuel Cost, Follow up with clients for payments, Maintenance cost, Assets, Import export duties, High Valuation Asset Tracking, Maintaining stock records of materials, Record of damaged goods, etc. leads to implementation of Enterprise Resource Planning (ERP) in an organization can be immensely helpful in optimizing business operations to improve productivity and promote growth.
Enterprise resource planning software (ERP) links various applications that facilitate the flow of information within an organization, making it a powerful tool for logistics. This software lets fleet operators manage business functions like product distribution and staff maintenance, and provides companies with valuable data at every stage of the supply chain. There are various companies like NetSuite, SAP, Oracle Microsoft Dynamics, Sage, etc. are world leaders in such applications.
Here are six benefits of implementing ERP in logistics and transportation:
- Vendor/Customer Portal: ERP software comes with a vendor/customer portal which allows secure login to the account to know the status of all the logistics, especially in a bid. All the communication is integrated and updated via SMS or email.
- Optimize Inventory Control: Managing inventory is a vital task for any transport business. ERP implementation enables the transportation industry to view requests, orders, deliveries and sales, from a centralised location. Transport businesses can use these tools to handle inbound and outbound orders and to determine out-of-stock inventory. It even speeds up the order to dispatch time.
- Scheduling Maintenance: Transport vehicles and infrastructure are assets that need to be maintained timely. The maintenance of assets needs to be planned well and regularly as it can affect the business to a certain extent. ERP software gives us total control of all the key processes.
- Improves Distribution: ERP also speeds up distribution times. It enables freight companies to manage their distribution flow accurately. It allows suppliers, drivers, distributors, and retailers to be on the same page by sending real-time information about traffic, customer addresses, etc.
- Real-Time Tracking: In transit, vehicles need to be tracked on a real-time basis to update the customers. This helps a logistics business with valuable business intelligence.
- Staff Management: ERP is an excellent tool when it comes to workforce management. As such, the freight operators can manage work hours, break times with the help of the software, and get information to assess the performance of staff. It even provides additional security options such as data backups for staff, payroll, attendance, etc.