Logistics ERP functions
To the question: “what can a logistics management software do ?” It could be answered as follows:” Make more efficient not only the logistics, but all the other business processes thanks also to the logistics”. It may seem exaggerated, yet more and more companies are discovering that an ERP can help them simplify many of their processes and can support their entire production and logistics cycle to work more easily.
As we have seen several times, the first and most important benefit of any ERP is precisely to make the various company sectors “talk”, crossing data and information to improve productivity and overall business efficiency.
In the case of logistics, the program must be developed to help companies not only in warehouse operations, but to manage a multitude of elements that are part of the production chain, from the purchase of raw materials to the shipment of finished products to customers.
The main features of a logistics management system
First of all, in choosing a management software for logistics, it is certainly better to prefer a scalable and modular solution which, in addition to the classic inventory management options, offers features such as:
analysis of the order availability to generate shipping documents by checking the customer order portfolio with warehouse stocks, generating pick lists to manage customer priorities and shipments by zones;
lot trace-ability to manage warehouses based on lots, serial numbers, product expiration, variable locations and inventories;
internal logistics management and logistics for third parties;
compliance with obligations for possible legal obligations.
The point is that logistics is one of the key success factors in the management of many companies, manufacturing and beyond. And to think that managing it effectively simply means dealing with the daily handling of goods would be a mistake. A similar approach, in fact, would not give guarantees of effectiveness in the face of unforeseen events and sudden peaks of orders.
The general objectives of the logistics software are to increase profit margins and reduce supply chain times in order to give the company a competitive advantage in the market.
Save time and money: the advantages of a logistics management system
There are many advantages that can be obtained simply by using management software for business logistics. Mainly we can identify 7, closely related to each other:
- standardization of goods entry and exit processes;
- optimization of storage logics;
- more speed in order processing;
- optimization of the production chain;
- reduced transport costs;
- reduction of human errors;
- improve the trace-ability of goods.
Let’s see them in detail.
Logistics introduces hardware tools and processes in companies that allow the tracking of goods movements in real time, giving immediate management visibility. Check lists of loading and withdrawals guided by exit orders that commit the materials make certain the stocks and availability made available to those who must manage and decide.
Correct storage logic based on the characteristics of the materials and on the rotation indexes of these make it possible to organize their layout, optimize space occupancy and minimize picking times.
As evident, management software can help companies distribute their products to the public and customers faster. Withdrawals organized by destination of the goods and the nature of the products, together with route optimization, increase the speed of delivery of the necessary goods and, assisting in choosing the most efficient shipping service, the logistics software can save days (sometimes even weeks) ) in the process that goes from the production cycle to the delivery time. Furthermore, logistics software prevents human error.
Completing the complicated calculations that were once necessary to analyze transport data was not only time-consuming, but also too often subject to human errors that often ended up costing the company a great deal of money. Today, however, these calculations are completely managed by the software. The same program improves the trace-ability of goods and the level of order fulfillment.
In addition, the management software can help companies save money by comparing courier fees and shipping services, to help companies identify the most cost-efficient based on multiple factors and not just for the price.
Not surprisingly, transport can be one of the most delicate (and most expensive) phases of logistics management, considering factors such as shipping prices and fuel costs. The management software allows companies to automate the management of large amounts of transport data so that they can be analyzed and so that the top management can make informed and punctual decisions based on this analysis.
For example, if a trucking company can make a delivery in three days but at a higher cost than a second courier that would take five days for delivery, the software can determine which is the most advantageous option for the company. It is clear that doing the same type of calculations manually would be as long as it is frustrating.
A choice in step with the times
Those we have listed in this article are some of the key features that every management software must have to optimize the logistics.
But, as a general rule, when choosing a program it is advisable to focus on scalable and modular solutions and, above all, built vertically to meet the particular and complex needs of specific sectors.
Today, thanks to technological innovations, individuals and companies are getting used to receiving goods within a few days (even a few hours) and to agile and satisfying shopping experiences. A management software is certainly the ideal choice to maintain (and increase) high standards.