“ERP is first an attitude; second, a process, and only third, a set of tools.” – Alexis Leon
As we all know, the shipping and logistics sector is one of the fastest expanding sectors in the world, and over 90% of transport and commerce is transported by shipping and logistics. Without transport and logistics, it will not be possible to import and distribute bulk products and amenities around the world.
Running such a large enterprise is not an easy job, since there are many problems facing this sector on a regular basis, such as labour costs, freight costs, maintenance costs, rising fuel costs, etc. Assets; Import export duties, High Valuation Asset Tracking, Maintenance of stock records of goods, Follow up with customers for refunds, Record of loss products, Maintenance of material costs.
What Are The Challenges faced By Logistics Industry?
Before we immerse ourselves in the comprehension of ERP solutions for this sector, it would be perfect to see what problems this industry faces and what all metrics should be held in mind when selecting an ideal and robust logistics software solution.
This will be the ideal basis for understanding how ERP solutions help to overcome these challenges.
- Network, IT, storage, warehousing, and delivery systems are not implemented well enough.
- Observing trade laws and regulations in a consistent manner over a broad geographic area.
- Availability of well-trained personnel and a rigorous preparation phase.
- To reach out to more customers, you just have a limited regional visibility.
- Roads, airports, and seaports are also part of the warehousing system.
- Infrastructure for warehousing, such as highways, airports, and seaports
- Manual enterprise processes and data collection are becoming more time and cost consuming.
- Inability to obtain comprehensive data analytics and reporting
- Delayed release times, resulting in a reduction in shipments and revenue.
- Communication breakdown between departments, There is a lack of ongoing feedback and supervision.
Benefits of ERP for Logistics Industry
ERP software can seamlessly integrate into a variety of enterprise realms and application uses, putting all of a company’s major attributes under a centralized dashboard to track and control.
A successful logistics ERP solution includes a vendor/customer portal that allows for quick and effective account login and control of the aligned processes.
Both communications are incorporated via email or secure SMS, allowing users to receive updates to their personal profiles.
Inventory control and Stock visibility
Getting complete inventory management is one of the most important activities for ensuring organizational fluency in logistics and transportation.
The latest requests, stock, current deliveries on the road, and the sales tally are the most relevant items to keep track of. ERP tech unifies all notable works into a single dashboard, enabling corporate owners to keep a close watch on their inventory’s current status.
Synchronization among stakeholders
An ERP system has greater control over partners in terms of monitoring and disciplinary management by trying to efficiently cross all barriers between them.
Effective information sharing from one agency to another with the right information at the right time is achieved with the utmost confidentiality. Process execution is seamless and almost error-free, with details available in near real-time.
Enhanced Supply Chain Management
Certain operations in the logistics sector now seem to be difficult with manual procedures. The implementation of the ERP solution ensures a robust visibility across the full range of facilities. The fundamental benefit is that the company will then handle and track operations in various aspects and through different stakeholders. This is likely to make coordination and synchronization between agencies even easier. Efficient and prompt monitoring of procedures with appropriate risk management is carried out from the start of the order to the final supply to consumers.
Governance With Real-Time Tracking
Using the innovative location features and useful Business Intelligence of logistics ERP systems, vehicles in transit can be monitored in real-time using GPS integration for customer alerts and control room insights. This improves the company’s overall customer service infrastructure while still allowing executives to use real-time, reliable data. This aids the logistics industry in designing effective business plans based on more accurate data.