Enterprise Resource Planning

What is ERP in shipping and logistics?

ERP stands for enterprise resource planning, a category of professional software. In the shipping and logistics industries, ERP systems are used to manage inventory, track orders, and handle customer service. They can also be used for finance, accounting, product sourcing, and more. ERP systems are designed to help businesses automate processes and improve efficiency. By using a well-implemented ERP system, shipping and logistics businesses can save time and money. In addition, ERP systems can help businesses improve their customer service by providing their customers with accurate tracking information and updates. This can help to build trust and loyalty between the business and the customer.

Key Takeaways

• • What does ERP stand for? Enterprise Resource Planning.

  • Benefits of using an ERP system in a logistics company include enhanced productivity, better time management, improved customer service, and more. 

What are the benefits of using an ERP system in a logistics company?

There are many benefits and reasons to use enterprise resource planning software in a logistics company:

• Enhanced Productivity: A well-designed ERP can automate many bureaucratic tasks and workflows, improving efficiency and saving time across the organization. It enables employees to spend significantly less time on repetitive duties like writing proposals, completing forms, generating quotes, producing reports, and performing calculations, thus increasing productivity as a whole.
• Better Time Management: An ERP system allows for the quick and efficient transmission of information. Data can be centralized in a single channel, saving time by eliminating excessive  emails and duplicate data entry.
• Improved Employee Management: Managing employees can be challenging, particularly when they’re dispersed across the nation or around the world. Keeping track of employees’ tasks across locations can be challenging, but with an ERP system in place, processes can be simplified. Managers can use the ERP system to oversee working hours, lunch breaks, rest times, employee data, payroll, bonus increases, employee performance, paid leave days, and more.
• Improved Customer Service: Another benefit of using an ERP system in a logistics company is that it can help to improve customer service. Without a centralized system, it can be difficult for customer service representatives to access information about orders or shipments. This can lead to long wait times on the phone and frustrated customers. An ERP system can help to solve this problem by providing customer service representatives with real-time access to information about an order or shipment. This information can be used to resolve issues quickly and efficiently, leading to happier customers.
• Better Inventory and Shipment Tracking: One of the primary benefits of using an ERP system in a logistics company is that it can help to improve the tracking of inventory, cargo, and shipments. Without a centralized tracking system in place, it can be difficult to keep track of where inventory is located and how much is available. This can lead to stock-outs, which can disrupt operations and lead to lost sales. An ERP system can help to solve this problem by providing a central repository for inventory and tracking data that can be accessed by all members of the organization and also shared with third-party systems, partners, and customers. 

• Reduced Costs: Another benefit of using an ERP system in a logistics company is that it can help to reduce costs. Working out of spreadsheets and disparate systems requires a significant amount of manual intervention to maintain, which results in increased labor costs. Additionally, a paper-based system is more likely to result in errors, which can lead to additional costs associated with correcting those errors. An ERP system can help to reduce these costs by automating many tasks and providing built-in controls to help prevent errors.

• Greater Scalability: A final benefit of using an ERP system in a logistics company is that it provides greater scalability than a traditional paper-based system. As the business grows, the paper-based system will become increasingly difficult to maintain. An ERP system, on the other hand, is designed to grow with the business, making it easy to add new users and functionality as needed.