ERP system in logistics and transportation: What is it? Benefits

An ERP (Enterprise Resource Planning) could be translated as "Enterprise Resource Planning" and is a set of information systems that enable the integration of certain operations of a company, especially those involved in sectors such as logistics, production, inventory, accounting, etc.

The purpose of this technological tool is to integrate and automate a company's main processes and data on a single platform, thus achieving simpler data management and optimized organization.

The ERP system, therefore, manages to increase coordination between all parts of the supply chain and the company thanks to the possibility of sharing information. This information can be used to realize long-term strategies.

Likewise, we can make comparisons between two specific moments in the process to measure our potential response to the relevant improvement strategies.

You should bear in mind that ERP systems are modular, that is, they interpret the company as a set of interrelated departments. Thus, they have a high degree of programmability that allows special parameters to be designed according to the specific interests of the company.

However, it is common for companies to make some mistakes when implementing and using ERPs.

What is the purpose of an ERP in logistics?

ERP systems have certain functions to optimize your company's logistics:

Inventory control

With this system you can know exactly what goods are in the warehouse, what their classification is and how many units are available, so that we can offer the customer a guaranteed service.

Tracking control

You have the possibility to manage the tracking of your orders in real time and during the entire life cycle of the product to ensure your customers the highest number of correct deliveries possible, through expiration date controls by batches, queries of the sales and purchase history by batches, etc.

Warehouse management

Allows you to manage all the operations carried out within the warehouse, from item management according to availability, error-free picking and packing...

Fleet management

You can manage your fleet of vehicles in a much easier way and control customer orders and load reports (multi-company planning, shipments by SMS, incidents, etc.).

In general, an ERP system in logistics can help a company improve the efficiency and productivity of its logistics and distribution processes, increase customer satisfaction and reduce distribution and warehousing costs. It can also be used to integrate logistics processes with other company departments, such as finance, sales and production, which can help the company work more efficiently and effectively.

Advantages of an ERP in logistics

A then we indicate the advantages that provide ERP systems in logistics:

Increased productivity

Increases the productivity of all departments of the company as it reduces the margin of error.

Improved competitive capacity

You will have certain competitive advantages thanks to the optimization of the operational processes of the warehouse that are executed more accurately, quickly and economically.

More satisfied customers

You will know your customers' needs in a more concrete way thanks to the storage and flow of data, as well as the access to the history, which considerably facilitates the work of customer loyalty.