Today, we are facing a new paradigm that is causing changes in the organization of logistics processes. The rapid advance of logistics 4.0 is driving a digital transformation in these companies, which are becoming increasingly global. In fact, according to a Forbes Insights survey, 65% of logistics managers are aware that, if they want to survive in the digital era, they need to renew their business model by adopting the integration of new digital capabilities in areas such as warehousing, order picking, transportation... In short, the management of the set of activities that make up the supply chain.
If you too want to achieve more efficient business and logistics management, an ERP for logistics can help give you the boost you need. From now on, we will provide you with all the information you should take into account when making a change that will make a 360º turnaround in your organization's operations.
First of all, we want to clarify that this content has been prepared specifically for people who work or have previously worked with an enterprise resource planning (ERP) system and who currently hold positions of responsibility in their company. If you are responsible for making these types of decisions in your company, you are in the right place! Read the following paragraphs carefully and find out how to find the perfect ERP for transportation and logistics for your company.
How to choose an ERP for logistics?
An ERP system for logistics is a management software specially developed to carry out a correct management of processes related to warehousing, transportation, inventory control or traceability of orders within the logistics cycle of any company.
Assume that it is time for a change:
You've probably been thinking about it for some time. On the one hand, you know that your business needs a change in its management systems, but on the other hand, you are afraid that the implementation of a new ERP will fail or that it will not bring you the results you expected. Your uncertainty is totally logical, but continuing to work with an ERP that does not provide what your business needs is not the solution, and prolonging the decision can have serious consequences. To eliminate mistrust, our advice is to make your entire team aware of the need for change. It is very important that everyone is aware that an ERP not only involves a change in the management processes of a company, but also requires a change of mentality on the part of all employees who will use the software. Technology can bring numerous business benefits, but if the human capital does not do its part, it will be difficult to achieve the desired objectives.
Specify your business needs:
Once you have made your decision, it is time to meet again with your team to draw up a document in which you specify each and every one of your management needs, the objectives you are looking to achieve and the budget you have to carry out the implementation of an ERP software.
Start looking for an ERP management software for logistics:
Having those needs and the amount of money you can invest clear, you should start looking for an ERP software that meets those requirements already specified. If you have already started your research, you will have seen that there is a wide variety of ERP systems on the market. Our advice is to make a selection of the three most commonly used software. Once selected, compare exhaustively each of their features and functionalities until you choose the one that is able to meet your management needs. At this point, we are not going to deceive you, a good ERP system will never be cheap. The important thing is that you go for a program with a proven track record and whose manufacturer is reliable.
Select a technology consulting company:
Perfect, you have been brave by deciding to embark on the course towards digital transformation and you know what will be the perfect ERP to meet your business needs. But there is still one last step to take, and no less important: you must choose an IT consulting firm to take charge of the ERP implementation project for logistics companies. Before making a decision, we advise you to consider the following:
Warehouse and order management
An ERP for the logistics sector will allow you to effectively manage all the operational activities that take place in the warehouse, such as the organization of items by availability criteria (multi-location) or the picking and packing processes without errors and, of course, with the quality required by customers.
Inventory control
It will be possible to know in detail the merchandise that is in the warehouse, as well as its type and available units, so that you can offer the customer a service with guarantees. The inventory analysis will help you to know why there are differences between what the system tells you that you have and what is actually in the warehouse.
Traceability control
You will be able to manage the traceability of your orders in real time and throughout the life cycle of the product to ensure proper delivery, through expiration date controls by batches, the consultation of the history of sales and purchases by batches or the control of the history of movements between warehouses.
Fleet and traffic management
An ERP software for logistics will help you manage your vehicle fleet (vehicle data sheets, transport repair control, vehicle consumption control, etc.) and control customer orders and load reports (multi-company planning, sms sending, order and/or transport incidents, etc.).
Benefits of an ERP for warehouses
Increased productivity
An ERP system for the logistics sector will help all companies to improve the productivity of all departments or areas of activity, minimizing errors as much as possible.
Increased competitiveness
By being able to manage warehouse operational processes more accurately, faster and at a low cost, you will notice a considerable increase in your competitive advantage.
Increased customer satisfaction
You will be able to gain a deeper understanding of your customers' needs, moving from being reactive to being more proactive. Thanks to data storage and access to history, you will be able to improve customer loyalty and increase conversion rates.
What is the best ERP for logistics?
Despite the variety of existing software in the ERP market, the experience we have acquired in the logistics area has led us to currently work with Microsoft Dynamics 365 Business Central, the Microsoft ERP best known perhaps by its previous names: Microsoft Dynamics NAV and Navision. Why should you consider implementing this ERP program? Below, we leave you with some reasons to value this choice:
Flexibility:
Depending on your management needs, you can implement the ERP on a cloud server, on your own server or on a third-party server. Besides, Microsoft offers hybrid deployment models for those companies that do not want to work with software that is hosted in a 100% cloud environment.
Mobility:
Microsoft has been helping companies around the world to transform their business processes through the famous digital transformation for several years, becoming one of the benchmark technology companies in terms of technology software development. All this through a myriad of tools that can be integrated with each other (Outlook, Office 365 Power BI, etc.), such as business intelligence applications, tools that promote teamwork and help to increase employee productivity...
Here you can see some highlights of one of the most widespread ERP in Spain and the world, Microsoft Dynamics 365 Business Central:
When estimating the investment required to implement an ERP system, the following points should be taken into account (regardless of the software and the implementer you choose):
Consulting services: depending on the complexity of the project, the team of consultants in charge of implementing the ERP for logistics will make an estimate of the number of hours that the implementation project may involve.
Licenses: each type of software can have several licensing models. In the case of Microsoft Dynamics 365 Business Central ERP, the licensing modalities that we can find are the following:
If you too want to achieve more efficient business and logistics management, an ERP for logistics can help give you the boost you need. From now on, we will provide you with all the information you should take into account when making a change that will make a 360º turnaround in your organization's operations.
First of all, we want to clarify that this content has been prepared specifically for people who work or have previously worked with an enterprise resource planning (ERP) system and who currently hold positions of responsibility in their company. If you are responsible for making these types of decisions in your company, you are in the right place! Read the following paragraphs carefully and find out how to find the perfect ERP for transportation and logistics for your company.
How to choose an ERP for logistics?
An ERP system for logistics is a management software specially developed to carry out a correct management of processes related to warehousing, transportation, inventory control or traceability of orders within the logistics cycle of any company.
Assume that it is time for a change:
You've probably been thinking about it for some time. On the one hand, you know that your business needs a change in its management systems, but on the other hand, you are afraid that the implementation of a new ERP will fail or that it will not bring you the results you expected. Your uncertainty is totally logical, but continuing to work with an ERP that does not provide what your business needs is not the solution, and prolonging the decision can have serious consequences. To eliminate mistrust, our advice is to make your entire team aware of the need for change. It is very important that everyone is aware that an ERP not only involves a change in the management processes of a company, but also requires a change of mentality on the part of all employees who will use the software. Technology can bring numerous business benefits, but if the human capital does not do its part, it will be difficult to achieve the desired objectives.
Specify your business needs:
Once you have made your decision, it is time to meet again with your team to draw up a document in which you specify each and every one of your management needs, the objectives you are looking to achieve and the budget you have to carry out the implementation of an ERP software.
Start looking for an ERP management software for logistics:
Having those needs and the amount of money you can invest clear, you should start looking for an ERP software that meets those requirements already specified. If you have already started your research, you will have seen that there is a wide variety of ERP systems on the market. Our advice is to make a selection of the three most commonly used software. Once selected, compare exhaustively each of their features and functionalities until you choose the one that is able to meet your management needs. At this point, we are not going to deceive you, a good ERP system will never be cheap. The important thing is that you go for a program with a proven track record and whose manufacturer is reliable.
Select a technology consulting company:
Perfect, you have been brave by deciding to embark on the course towards digital transformation and you know what will be the perfect ERP to meet your business needs. But there is still one last step to take, and no less important: you must choose an IT consulting firm to take charge of the ERP implementation project for logistics companies. Before making a decision, we advise you to consider the following:
- Do they have a degree certifying their knowledge of the ERP system?
- Do they have experience implementing software in the transportation and logistics area?
- What is their work methodology?
- Can they travel to my place of work?
Warehouse and order management
An ERP for the logistics sector will allow you to effectively manage all the operational activities that take place in the warehouse, such as the organization of items by availability criteria (multi-location) or the picking and packing processes without errors and, of course, with the quality required by customers.
Inventory control
It will be possible to know in detail the merchandise that is in the warehouse, as well as its type and available units, so that you can offer the customer a service with guarantees. The inventory analysis will help you to know why there are differences between what the system tells you that you have and what is actually in the warehouse.
Traceability control
You will be able to manage the traceability of your orders in real time and throughout the life cycle of the product to ensure proper delivery, through expiration date controls by batches, the consultation of the history of sales and purchases by batches or the control of the history of movements between warehouses.
Fleet and traffic management
An ERP software for logistics will help you manage your vehicle fleet (vehicle data sheets, transport repair control, vehicle consumption control, etc.) and control customer orders and load reports (multi-company planning, sms sending, order and/or transport incidents, etc.).
Benefits of an ERP for warehouses
Increased productivity
An ERP system for the logistics sector will help all companies to improve the productivity of all departments or areas of activity, minimizing errors as much as possible.
Increased competitiveness
By being able to manage warehouse operational processes more accurately, faster and at a low cost, you will notice a considerable increase in your competitive advantage.
Increased customer satisfaction
You will be able to gain a deeper understanding of your customers' needs, moving from being reactive to being more proactive. Thanks to data storage and access to history, you will be able to improve customer loyalty and increase conversion rates.
What is the best ERP for logistics?
Despite the variety of existing software in the ERP market, the experience we have acquired in the logistics area has led us to currently work with Microsoft Dynamics 365 Business Central, the Microsoft ERP best known perhaps by its previous names: Microsoft Dynamics NAV and Navision. Why should you consider implementing this ERP program? Below, we leave you with some reasons to value this choice:
Flexibility:
Depending on your management needs, you can implement the ERP on a cloud server, on your own server or on a third-party server. Besides, Microsoft offers hybrid deployment models for those companies that do not want to work with software that is hosted in a 100% cloud environment.
Mobility:
- Web client: compatible with the most widely used browsers (Explorer, Safari, Edge, Chrome, Firefox, etc.).
- Desktop client: the traditional way of working with business management software.
- Universal App for smartphones and tablets: the most convenient way to take your ERP everywhere.
Microsoft has been helping companies around the world to transform their business processes through the famous digital transformation for several years, becoming one of the benchmark technology companies in terms of technology software development. All this through a myriad of tools that can be integrated with each other (Outlook, Office 365 Power BI, etc.), such as business intelligence applications, tools that promote teamwork and help to increase employee productivity...
Here you can see some highlights of one of the most widespread ERP in Spain and the world, Microsoft Dynamics 365 Business Central:
- 31 years of history (Navision)
- 200,000 customers worldwide, more than 12,000 in Spain.
- 3.3 million users
- More than 155 countries
- More than 4,500 partners
When estimating the investment required to implement an ERP system, the following points should be taken into account (regardless of the software and the implementer you choose):
Consulting services: depending on the complexity of the project, the team of consultants in charge of implementing the ERP for logistics will make an estimate of the number of hours that the implementation project may involve.
Licenses: each type of software can have several licensing models. In the case of Microsoft Dynamics 365 Business Central ERP, the licensing modalities that we can find are the following:
- Pay-per-use: a monthly fee is paid for using the license. Depending on the management needs to be covered, the price may be higher or lower.
- Obtaining the license: a single payment is made for the unlimited use of the license.