How Does the Logistics ERP Module Work? With Top 3 Examples of MNCs Using ERP Software

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So far, you would have heard multiple times what ERP is, what they do, and how it benefits logistic companies. But we “doubt” you know how the Logistics ERP Module works. Since it is a highly versatile application, different companies use it in different ways to meet their specific business needs. A case in point here can be a leading logistics company utilizing Marketing and CRM, Freight Forwarding, and 3PL Warehousing Management modules to carry out multiple tasks “including”: lead management, lead assignment, lead follow-ups, job creation, vendor bills booking, inventory tracking, and many more tasks. However, if your logistic firm is not that “big,” you might refrain from putting your money on comprehensive ERP software, but as your business grows, you could fail to operate smoothly without it. 

In this piece of content, we will cover various topics associated with Logistics ERP Module, but let’s see first:

What is an ERP?

ERP is short for Enterprise Resource Planning, a software solution used by many “large” companies worldwide to supervise, customize, and automate essential tasks, i.e., time-consuming and part of daily activities. 

The jobs an ERP application does usually include:

1. Financial management

2. Warehouse management

3. Project management

4. Human resources

5. Sales orders

6. Supply chains

7. Risk management

8. Inventory management

9. Sales volume

Do you know what the best part of the Logistics ERP Module is? They feature automated functions and business intelligence where the former comes in handy to save time and money, while the latter prevents you from headaches and frustrations. “For what?” you might ask. The burden of managing multiple systems at once! 

Just to let you know, the ERP systems use a “common” database to streamline the needs of your logistics company instead of several standalone systems you might be using now. Can you guess how it benefits? All users ranging from junior positions to senior ones can create, store, and use the same data obtained through “common” processes. 

With that over, let’s take a deep dive into another topic, i.e.,

How does ERP software work?

A “crucial thing” you must understand here is that your business operations might not carry out smoothly if you use scores of standalone systems to execute your workflow. These systems do not just consume massive time while toggling between one software to another but also break down the progress of your work. But when you implement a reliable ERP solution to your logistics business, things don’t stay the same anymore. We mean ERP allows various users to simultaneously use the same information in one database and ensure the job gets done quickly. 

Besides this, incorporating an ERP system in your business also allows it to combine operational and financial systems into “just” one shared database. And if the default settings of the ERP application don’t sync well with your company’s operations, you can customize it in the desired way to meet your business needs and allow each department to make the most of this system. 

Thus, once you buy a logistic-centric ERP application from a well-known vendor, it will let your staff focus on more critical business tasks by automating time-consuming daily activities. Such as completing repetitive needs or running reports from various systems. 

What are some real-life examples of companies using ERP applications?

1. Amazon 

Amazon uses a premium ERP application to manage their:

A. Logistical business needs

B. Human resources

C. Order management

D. Finances

E. Sales

F. and many more departments through just one database. 

With such feature-rich software at their disposal, they can easily choose which business area they want to view. For instance, it could be anything from sales and marketing to third-party order fulfilment or the remaining aspects of your business. 

2. Toyota 

When Toyota wanted to expand its reach to other countries for the sake of delivering high-quality services, such as enhanced operational management, reduced working hours, a paperless system, and increased overall efficiency, “they” needed a well-functioning ERP application. So, they chose one after extensive research that allowed them to manage the after-sales service skills effortlessly and supervise their distributor’s operations, who offer various services to customers for their products globally. 

3. Starbucks 

Starbucks utilizes a prominent cloud-based software solution that helps them automate the most back-office processes and regular business activities. In short, they have a complete business management software solution that helps them look after:

A. Supply chain management 

B. Project management 

C. Financial management 

D. Accounting

E. Procurement 

In a nutshell

We hope you acquired considerable knowledge through this blog post about ERP, how it works, and a few examples of companies using ERP. So, if you found this content piece informative and want to buy a powerful ERP application for your logistic business, contact a top-notch software seller for transport companies now.