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Traits of an Effective ERP System for the Logistics Industry

  • The success of any enterprise depends largely on how they address customer requirements, as well as its internal efficiency. Both of these objectives require the assistance of a well-oiled supply chain which requires seamless logistics. Much of this is attributed to modern logistical management systems or ERP software for the logistics industry. (Information Credit -

    Traits of an Effective ERP System

    The basic function of any logistics management software is to improve its productivity and efficiency in all the warehouse operations. The ultimate goal of an effective ERP system is to save money and improve customer satisfaction. Discussed below are the traits of an ideal ERP system.

    1. Comprehensive Solution: An effective ERP system for the logistics industry should be a comprehensive one. It should include coverage for everything ranging from supply chain planning, inventory management to assisting in the minor jobs of picking, packing, slotting and shipping. It should also aid in streamlining daily transportation schedules as well as logistics tracking to improve the transparency of the entire operation.

    2. Seamless Integration: The modern competitive and integrated business environment requires either a single comprehensive unit or separate units which seamlessly integrate. A good ERP system would integrate easily with any existing system or should provide a comprehensive solution to such problems. It should enable decision makers, and managers to effectively sync and plan inventory and product movement as required. This reduces inventory “glut” or instances where warehouses are stocked over capacity.

    The core of any ERP system related to logistics is warehouse operation management. Thus, ERP systems should offer more than just visibility and control of their entire supply chain. A good ERP system should include all such critical solutions, with easy to use dashboards, apps and interfaces.

    Required Features of a good Logistics ERP System

    Many organisations offer customisable and scalable solutions for the logistics industry, with some common features mentioned below.

    • Reporting capabilities should be comprehensive, including key data such as inventory figures, shipment records and product histories. These records should be accessible remotely and instantly as they are requested.
    • ERP systems should include logistics tracking software to provide accurate shipping data. This helps in improving accuracy and transparency with the company’s cargo movements.
    • Vender- Managed Inventory management systems should be automated to record replenishment requests. This helps in speeding up the supply chain and minimising out of stock situations.
    • Inventory control and visibility should be real-time.
    • The ERP system should include effective posting and invoicing control functionality. This aids in processing and applying service contract policies in real-time, which helps prompt invoicing.
    • Multi-client architecture should be present to support more than one customer.

    Implementing a brand-new ERP system is not always easy, especially for large scale organisations. However, by working with a reliable and competent tech partner, it can serve as the best tool to improve and address all their logistical limitations.