(Newswire.net — January 23, 2017) — Despite significant advances in both technology and the study of logistics, managing a supply chain effectively remains a major challenge for many enterprises. This has only been compounded by the fact that fast, free, and international ordering are now basic expectations of many customers.
The overall impact logistics has on the success or failure of a business is huge. Problems with materials or fulfillment can take a huge hit on the bottom line. And when orders show up late or wrong, loyal customers quickly look for alternative suppliers. That is why companies must continually strive to improve the effectiveness of logistics.
Implementing an ERP can have a huge impact on every corner of a company, but the impact is particularly significant in terms of logistics. If you are looking to improve operations, just consider five major logistics problems that an ERP solves.
Departments are Not Coordinated
One of the major challenges of logistics is that it receives inputs from so many different departments in a company – sales, marketing, production etc. Keeping the system running smoothly requires some coordination between these departments, but in the absence of an ERP system that can centralize the collection of data, this kind of fast and flexible cooperation is very difficult. An ERP is an overarching way to get everyone on the same page.
Customers are Frustrated and Fed Up
Most businesses today operate in hyper-competitive markets, especially if their focus is on home delivery. As a result, when an order shows up later than expected, includes the wrong components, or is out of stock entirely, it is easy to jump ship for a competitor. Distribution ERP software can help you smooth out the inefficient and ineffective parts of your logistics operation so that you can deliver on every customer’s expectations.
The Supply Chain in Overwhelming
On even a modest scale the average supply chain is large, complicated, time and labor intensive, and dependent on a lot of resources. When everything is running smoothly the job of managing the supply chain can place a heavy burden on companies. And when there are problems, simply keeping things up and running can overwhelm everything else. An ERP automates many logistics workflows so that you can slash your overhead costs and make more efficient use of your resources.
IT is Getting in the Way
Logistics relies on so many constituent parts that it can be easy for an entire supply chain to become consumed by overlapping and over-complicating technologies. The very tools that are meant to make things easier simply create a lot more hassles and setbacks. Instead of relying on a piecemeal approach to IT, ERP allows organizations to bring everything together under one umbrella. That keeps costs in check, reduces the need for maintenance/monitoring, and helps prevent major disruptions.
Workflows Cannot Change
Logistics is only effective when it can adapt to changes in your supply chain. Unfortunately, most do not offer the speed or flexibility necessary to keep up with evolving demands as quickly as they typically present themselves. An ERP empowers enterprises to forecast changes farther in advance and make changes to logistics while causing less friction and confusion. Companies that want to avoid becoming static and stale turn to an ERP provider to introduce dynamic abilities into their logistics operation.
It is a mistake to think that any and all of the problems you experience in your supply chain will disappear the minute you rely on an ERP. But with a careful implementation and full embrace of this technology you can radically transform the way you approach logistics over time.