ERP: How to Increase Efficiency of Logistics Processes?



ERP is a solution that supports companies, regardless their size, in logistics processes optimization. Providing simplified procedures, the organization is more able to respond to the expectations of its customers, not only in products presentation and services with higher quality, but also in delivery deadlines.

Inventory management in warehouse, order planning, receipt of supplier materials and shipment of goods to customers, create a certain chain that can become complex to manage if the company doesn’t have the most suitable human and technological resources. Without them, the goals for increasing productivity and reducing costs become more difficult to achieve.

In turn of logistics processes, there is a set of data that links the business organization with its customers and suppliers. The information can be so many that it becomes difficult for human resources to control and deliver results.

It is in this context that solutions such as Enterprise Resource Planning (ERP) software appear. Taking advantage of technological advances over the years, it’s possible to store, process and distribute data on logistics processes. The organizations will have facilitated in control, analysis and coordination of the respective procedures.

With an ERP solution, you may get results quickly and accurately, optimizing human resources and increasing their productivity.


Benefits of investing in an ERP to improve logistics processes


Implementing an ERP will bring a competitive advantage for your company. It will allow you to maintain a high-quality customer service.


1. Error minimization


Optimized document circuit, through the tools available in ERP software, reduces errors and unnecessary tasks. It also simplifies the tasks related to the logistics process. For that matter ERP solution has a framework and a large set of parameters that allow the creation of rules and the implementation of specific processes of each organization. These are as simple as not allowing you to record a shipment document if there are products without stock. Or even alert the purchasing department whenever an item has a stock below the minimum level.

Delivering inventory with accurate and real data is crucial for customer satisfaction and for the company performance. ERP enables continuous and real-time monitoring of inventory, suggesting you the placement of orders to avoid stock breaks.


2. Costs decrease


One of the main goals of any organization is to reduce costs. This can be achieved using an ERP system, not only by increasing productivity of human resources, but also by the reliability of the information that the system provides when monitoring processes. The tools provided by the system, for efficient route planning and waste reduction, will reduce costs.

The balance between demand and supply, and efficient inventory management, means that the products are stored correctly. It also requires that they be ordered and shipped at the right time. ERP software, besides facilitating the identification of better timing, will reduce company’s expenses by avoiding high levels of warehouse stock and potential waste. Preventive management and real-time stock level access will enable any company to avoid stockouts and improve customer response time, reducing the relative costs.


3. Effective process control


With an ERP software, users will have greater control over logistics processes: loads monitoring, shipment planning, audits of incoming goods and raw materials, delivery management, and so on. Users are now able to follow the logistics tasks associated, in an easy and immediate way, and they may identify, in advance, possible failures and guarantee time to respond to the requests of their customers and suppliers.

ERP also gives you the best suggestion of picking, regarding the availability of stock and product localization in the warehouse. Additionally, it optimizes warehouse capacity, given the immediate identification of the specific location of the product, increasing the speed of product’s mobility.


4. Accurate and safe information


One of the main problems of many companies is the spread of the data in several software that, sometimes, have no connection between them. With an ERP, the information becomes centralized and interconnected in a single database. Any user of the logistics department can carry out data searches at any time, easily and efficiently.

Imagine that users, with only a click, will know, immediately, which orders are expected to be delivered in the next few days, by suppliers. Users may also access to a panel that allow them to view the planned shipments, with a transport optimization analysis. Through this, you will perceive how an ERP software can represent so many advantages.


5. Quality in customer service and better relationship with suppliers


ERP systems are developed to support data management and analysis. They are excellent tools to improve process planning. ERP provides analyses that allow the manager to check the productivity levels of each department, such as logistics.

This functionality gives to the responsible of logistics the ability to allocate appropriate workforce and streamline future operations. By analyzing available data, it’s possible to implement continuous improvement routines. This will bring loyal customers and satisfied clients with the response times and a better reference of the company in the market.

ERP will improve your relationship with customers and suppliers. With access to accurate and real-time inventory levels, timely delivery of orders to suppliers and efficient shipment of products to customers will be allowed.


6. Mobility


Mobility is a very important issue in ERP solution. It enables employees to use Enterprise Resource Planning applications on their mobile devices. Warehouse operators don’t need to go to their offices to enter data in the system. Besides that, drivers can easily make their registrations and check schedules anytime, anywhere in the world.

The ability for users to access to stock inventory, customer information and process sales orders, without having to go through a corporate network system, provides significant improvements in quality of service, productivity, data logging and increased competitive advantage.

An advanced ERP system also enables the implementation of a multi-channel strategy, designed in the way customers register orders. For example, a consumer can place an order online, which will be automatically available on the backoffice to be handled by the warehouse, after he received a notification of registration.

An ERP solution add value to a company and increase the efficiency of logistics processes. At blink-iT, we can help you implementing Microsoft Dynamics NAV 2017 ERP! Contact us!



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