7 practical examples of ERP use in logistics

Optimizing processes is an efficient way to increase productivity and boost a company's results. Therefore, the use of an ERP in logistics is a possibility that should be considered. Logistics is responsible for a large part of the success of a business, therefore, achieving good management indexes is among the main objectives sought by companies. Many improvements and investments can be made in order to meet the goal. In this article, we will show the importance of ERP to optimize the logistics of the business, besides giving practical examples of the use of the system and what should be analyzed when choosing the tool. Read on!

The importance of using ERP to optimize the activities in the logistics sector

ERP (Enterprise Resource Planning) is a system responsible for controlling the entire management of processes and information and allows the integration of all sectors. With a tool like this, the manager can have an integral vision of the work stages and improve the company's performance. The system is important to optimize all activities and speed up the automation of processes, eliminating the use of notes, spreadsheets, or physical notebooks. With the data available in digital form, the loss of information is practically extinct, which brings advantages to the productivity of the business. When we talk specifically about logistics, the quick access to information and the greater integration between the sectors are factors that reduce the amount of mismatches and speed up the purchase and delivery processes. Logistics is one of the sectors that brings the most difficulties to productivity. There are problems in stock management, deliveries, production bottlenecks, and other factors. In the search for optimization of logistics processes, the help of a tool that enables greater control of this information is essential.

Learn 7 ways to apply ERP in logistics

As mentioned above, ERP is fundamental to the company's logistics. If you still do not know how it works, check out 7 practical examples of the use of the tool!

1. Order management

It allows the area manager to have full access to all information about the purchase orders requested from suppliers. With the data in hand, he can evaluate the effectiveness of the service and the fulfillment of deadlines. The evaluation can point out if the partners are offering what the company needs. If not, it demonstrates the need to find new partnerships. In addition, the integration between the sectors contributes to the fact that the purchase needs arrive quickly to the sector, which can prepare in a more planned way, avoiding excessive expenses during the negotiations.

2. Inventory control

ERP works in the optimization and control of stock, taking care of waste prevention or product losses. Analyze if the desired tool meets the different processes in the stock sector, such as ease of inventory taking, in addition to control of entry, exit, quantity, and dates. The system provides a broader view of stock turnover, which helps to ensure that the warehouse always has available what is needed for production. This helps to avoid the possibility of raw material loss. Communication between inventory and order management is also optimized, reducing the lack of essential products, which would decrease productivity and hinder sales results.

3. Fleet control

Fleet control is essential to the success of the enterprise. One of the possibilities is to monitor the transportation of deliveries in real time. As a result, the manager will be able to detect flaws in the process and act quickly in search of a solution. The data also serve to optimize the routes. With them, it is possible to find out which are the best routes for the vehicles, helping to reduce costs and improve the delivery process.

4. Financial management

Financial management can be one of the main challenges of a company. Some functionalities that ERP brings are:
  • accounts payable and receivable;
  • cash flow
  • bank integration
  • income and expense forecasts
  • reports, among others.
These functions facilitate the overall control of the business and avoid errors that could compromise financial health. Therefore, when looking for a tool for your company, check if it has the features mentioned above.

5. Issuance of tax documents

In addition to contributing to financial control, the tool can issue fiscal documents, making the company aware of its obligations. Among all management processes, the fiscal one is undoubtedly the most complex, because keeping up to date with all the laws is not something simple. It is good to remember that every company that carries out cargo transportation needs to issue electronic and mandatory tax documents. The system is updated and automatically issues these documents, meeting all legal requirements and avoiding problems in the legal area.

6. Product shipment process

Another interesting feature is the aid in the product shipment process. A quality tool contains a wide variety of cargo reports, romaneios, drafts, and labels that make this task simpler and more practical.

7. Reporting

When processes are carried out in the traditional way, reporting is not a simple task. After all, gathering all the data and producing a new one on top of it is laborious and error-prone. ERP offers automatic reporting. Thus, the manager can monitor all the logistics stages of the company, detecting possible production bottlenecks and working to improve the weak points of the business. These are some practical examples of the use of ERP in a company's logistics. As we have seen, it is an excellent solution to optimize processes and increase productivity. When choosing an option, look for a tool that is flexible and can be customized according to the needs and objectives of your business.