Use enterprise resource planning to gain logistical advantages

2/13/2012 at 1:16 pm by The Sage ERP Team

A lot of the companies that end up using enterprise resource planning software have very particular needs. These often include the tracking of physical items and the documentation of products' movement throughout the country and around the world. This was once a very difficult task for smaller and mid-sized companies, but ERP software and other kinds of business intelligence have rendered it relatively easy.

However, one of the less-heralded improvements that ERP application suites make in the operations of enterprises is to streamline and improve logistics. The actual movement of items has been made a lot easier by RFID tracking, barcodes and GPS technology. However, planning and process creation still requires a lot of work and organization. Here are some ways that an ERP implementation will transform a company from a standard business pattern to an enterprise frequently praised for its superior logistical capabilities.

Service
The more services a company provides a client with, the more favorably that it will be looked on. Consequently, businesses that use ERP systems should makes sure that their suites of applications make it easy to relieve the burdens placed on collaborators and customers. For example, if a business can create timelines and benchmarks for delivery so that a partner doesn't have to, it's going to be a client of choice for future projects. Use ERP systems to effectively judge delivery times and streamline transportation efforts.

Documentation and communication
Many companies don't want to have to worry about every little detail, until something goes wrong. At that point, more information is better than less. For example, if a delivery is missed and attendant processes slow down until it arrives, the root cause of the problem needs to be addressed immediately. Business partners will feel better if their clients can immediately produce documentation about why an issue arose, as well as communicate it effectively in a timely fashion. Be that sort of organization and let companies set their minds at ease that discrepancies will be cleared up quickly.

Unique resources
One of the best things about enterprise resource planning software is that it's versatile. While customization and specialization can be built in early implementations, it isn't too difficult to accommodate slight differences in logistics. For example, a company that normally deals with a certain mineral might be thrown off if a client wants to change a process to use slightly different materials. However, with ERP systems in place, it isn't hard to shift variables and accounts for the slight change, causing little disruption.