ERP for Logistic industry

Nov. 23, 2006 – ERP for Logistic industry

Logistics refers to the transport setup in the organization. A company that does not manage logistics properly will not be able to reach the customers in time or even receive the raw materials from the suppliers. The operation of logistics could be more complicated in bigger organizations that use hundreds of lorry trucks and even other forms of transport like airways and shipping. ERP helps in setting up a common database that helps to trace the status of “goods in transit”. ERP logistics software helps in conveying this vital information to all stakeholders and others dealing with the company. ERP Logistics software has helped in achieving that.

Benefits of ERP for Logistic industry
Logistics management is critical for any setup that deals with movements of physical goods and resources. ERP logistics software helps the companies to perform logistics functions easily and at a reduced price.

Some of the benefits of ERP for Logistic industry programs are as follows:
Operational efficiency
The very purpose of logistics is to supervise transportation and associated function. Anybody in the department should be able to say the status of a good at a particular point of time. This will make the logistics function more meaningful. Organizations have never found this happening on many occasions.

The typical problems could be something like this. The persons in charge of the goods in transit would not have conveyed the status to the concerned person. Even if it was conveyed it would not have been recorded properly and periodically. The main slag lies in information coordination.

These can be solved through a centralized database system like ERP.ERP ensures that there is no lacuna in communication part as things are entered automatically into the systems. The manual operations are definitely not devoid of errors and it could cause havoc on the fortune of the company especially when there is a miscommunication.

ERP logistics software makes a note of the movement of goods as and when they take place. Since they are entered at several outlets it becomes accessible everywhere. This ensures there is no discrepancy in recording the status of goods. The information can be crosschecked repeatedly. Such counter checking will help in identifying the errors if any.

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