ERP stands for Enterprise Resource Planning and is the process employed by manufacturing and logistics companies to manage the key parts of their business.
Why you need an ERP in logistics?
An ERP in your company is like an epicentre, from where you can manage the effective flow of your business in a way that brings in the best interests of the business, while also giving the best to your customers. The supply chain network is something that can be investigated using an ERP. Here you don’t need a generic ERP. An ERP is a toolbox that you can utilise in any way you want to meet the demands of your business.
How can the ERP help?
Companies that are involved in the transport of goods or have their own fleet of goods through the transportation have a huge advantage with the introduction of an ERP that also handles the transportation sector. It becomes an easy and transparent way of doling out information. It’s like keeping a record of all the details that are required for all the stakeholders to have a single source of information.
As the ERP is linked to technologies like GPS and a solid network of computers, the simple click of a button will send your goods to the next destination. This is like a well-oiled machine that keeps things running smoothly and in turn gives your company a competitive edge.
You can plan your whole marketing campaign with the help of the ERP. This is not just manufacturing but even for your services. For example, if you have a city-wide service delivery, it can be made easier to reach the customers with the help of an ERP.
The forecasting of your sales is made easier, where the ERP can be linked to the data pertaining to the past, which in turn allows you to prepare for the future.
The Supplier Relationship Management is also made easier, where you can keep a record of all the partners that you do business with. By tracking information about the expenditure and the invoicing you ensure that you stay within your budget and are also able to keep good relations with your partner.
If you have multiple entrances into the supply chain, which can be done with the help of the ERP, you will be able to provide the client a single warehouse, but still send the delivery from various different locations.
The implementation of an ERP system requires a lot of effort and a lot of resources are needed for creating the functionalities. Delays may occur and with the implementation of a new computer system, it entails training of the staff that will be handling it. Errors can occur due to lack of experience and due to this your efficiency will take some time to be optimised. You need to have a backup plan when you implement the system, which will allow you to revert to your old ways or something similar that will suit your new needs.
Advantages of an ERP for Logistics
In a nutshell, an ERP will act like a smart backbone of your business. It will handle all the information that you need for the key employees of the company to be updated and make your business flow and run efficiently.
In short, if you want to implement an ERP you need to have a plan. Identify what your goals are and what you want to achieve. Then implement an ERP that allows you to achieve that. And with the implementation of an ERP take in the following points into consideration.
- Discuss the implementation with the management.
- Create a plan for the project.
- Identify the objectives and the requirements
- Use the ERP to add value to the business you do
- Be open to suggestions
Finding a good ERP company is the best option. Go for a company that has a good reputation and will ensure the benefit of the company. There are several companies from where you can choose the best one.
Before you zero down on a company, make sure you also know its implementation costs. This will help you to know if the company you are about to partner with is worth it.