Streamline Your Supply Chain: The Power of ERP for Logistics

Previously, to ship goods, people had to check 10 tables manually. We now have a logistic ERP system that helps us complete this task in 5 minutes, minimizing errors. In this article, we will take a detailed look at what is ERP in logistics, its primary functions, advantages, and how it impacts the real world, and share some useful tips.

What is a logistic ERP system, and how does it work?

ERP (enterprise resource planning) is software that helps optimize and automate business processes. It’s divided into segments according to specific criteria, which allows purchasing companies to find the right software.

For effective management and analysis, segments refer to the division of a customer base or enterprise resources into groups based on specific criteria. The standard classification of the ERP market is divided into five sections:

• by Business Function;
• by End-user;
• by Enterprise Type;
• by Region;
• by Deployment.

Each section is used for different tasks, for example, by end-users for integration with equipment, working with marketplaces, or drug accounting. 

In addition to ERP, there is also CRM (customer relationship management), which is designed to manage the relationships between a company and its customers. The former focuses on internal operations, while the latter optimizes external processes, including sales, marketing, and customer service.

In this context, integration is a process that connects a company’s various business systems and applications with the ERP system. This enables continuous data exchange, automates business processes, and improves resource management efficiency. 

For example, previously you had 1,200 extra pallets in your warehouse “in reserve,” but now the system itself calculates the exact safety stock and reduces the surplus to 400 pallets. 

Or, before the system was implemented, 40% of truck trips were empty, but after the algorithm automatically combined small orders into one route, fuel consumption decreased ed. This approach helps different departments and systems work as a unified whole, improves coordination with supply chain partners, and lowers costs. 

The implementation of automation systems such as MES (manufacturing execution system), WMS (warehouse management system), and ERP can increase productivity by 20%, improve delivery efficiency by 30%, and reduce errors by 90%.

What is ERP for logistics?

Logistics ERP greatly simplifies business operations by taking over routine tasks. For example, it combines warehouse, transport, finance, and order data into a single program, replacing dozens of spreadsheets. It automatically finds the best routes, the most cost-effective suppliers, and the optimal delivery times, and alerts you if any of your warehouses are running low on pallets. 

It can solve certain problems, identify delays at the port and suggest an alternative route, or tell you how much more stock to buy if demand is growing. Logistics in the context of ERP is in control of all movements of goods, from purchasing and warehousing to delivery to the customer. 

Previously, you would have spent several hours on the phone to determine the location of the cargo and verify the quantity of goods. Now, ERP logistik will show this with one click and send an SMS to the customer with the invoice number.

Simple definition

It’s a program that unites all departments of a company into one system. It collects data, automates routine tasks, and then generates reports, leaving you with nothing more to do than review them. In simple terms, it’s a smart digital dispatcher for your business that calculates for you, predicts problems, and performs all tasks related to the supply chain. Less paper, fewer errors, and less downtime mean more profit and speed.

Focus on logistics

ERP for logistics is a unified “map” of cargo flows that saves money, time, and nerves. Here are a few examples of what it does:

1. Eliminates manual work. Finds available transport, reserves goods, and sends the customer a tracking number without your involvement.
2. Alerts you to concerns. Suppose a truck carrying a customer’s order breaks down 200 km from its destination. In that case, the logistic ERP system will find the nearest available transport (within a 50 km radius), recalculate the cost of reloading, and send the customer a notification with a new tracking number and the delivery delay.
3. Reduces costs. Trucks are not idle, there are no errors in invoices, purchases are optimized, and there is no longer any need to overpay for urgent deliveries.

The system takes the burden off you by handling the paperwork, leaving you with only the reports generated by the program to review.

Main modules/functions

The examples listed above are far from all that the ERP logistics software can do. Here are all the functions it has:

• stock control;
• automatic ordering of goods;
• ABC analysis;
• route optimization;
• GPS tracking;
• carrier comparison;
• placement scheme;
• working with equipment;
• barcoding/RFID;
• order automation;
• demand forecasting;
• contract control;
• dashboards;
• bottleneck identification;
• cost calculation.

How do these functions work together? The customer places an order, ERP logistica checks stock availability, reserves the goods, selects the cheapest delivery method, sends the task to the loaders via WMS, and then records the costs in the financial module.

How ERP expands the capabilities of your supply chain

ERP in logistics and supply chain management greatly expands your capabilities by providing comprehensive analytics, improving coordination between departments, and automating processes. Here’s what an ERP system logistics does to expand your supply chain capabilities:

1. Integration and automation. Everyone sees the same thing: when an order comes in, the warehouse immediately sees what and how much needs to be shipped, and the accounting department sees which invoice needs to be issued. It gives you confidence in the accuracy of the figures, ensuring that you don’t accidentally sell something that isn’t in stock and that there are no errors involving money.
2. Increased visibility and transparency. You can view the exact quantity of goods in all locations, including warehouses, as well as the amount ordered and the amount already in transit. It immediately shows problems related to shortages of goods, delays in delivery, and marks on the map where transport is idle. 
3. Optimization of planning and forecasting. This involves analyzing sales and calculating the quantity of goods that will be needed in the future. The system will decide for you what, where, when, and which goods you need; all you have to do is place an order. It will prevent you from purchasing excess goods, warn you when they are running low, and suggest the best delivery times.
4. Improved communication and collaboration. All departments work with the same data, eliminating confusion caused by paperwork, and the system automatically updates data in real-time. This simplifies working with partners, as suppliers can immediately view your orders in the system, carriers receive assignments, customers can track their orders, and you can focus on other issues without wasting time.
5. Customer relationship management (CRM). All customer data is in one place. They receive a notification after each action taken with their order, whether it has left the warehouse or arrived at their location. Managers can view the products the customer has previously purchased, the special conditions that apply, and when the next order is due, allowing for improved customer focus.
6. Analytics and reporting. The ERP logistique system collects all data automatically and sorts it as needed. It generates clear reports with tables, graphs, and charts, highlighting problems with color coding and sorting changes by time. 

In this way, the logistics ERP system enables you to monitor the sales department’s work, manage transactions, and analyze efficiency. Here is an example of what the logistics ERP control panel looks like.

Here you will find reminders about potential deals, upcoming events, and tasks, various statistics on contacts, customers, and more. You will also find forecasts, transactions, indicators, quick access to various sections, and a monthly trend chart.

Improved visibility and control

ERP software for the logistics industry helps eliminate blind spots and make data-driven decisions. It allows you to view inventory in real time, helping you avoid situations where goods exist on paper but not physically. In addition to transport, cargo tracking monitors customs statuses, temperature, and humidity, allowing for more accurate delivery times.

Monitoring of implementation, KPI (key performance indicator), helps measure the effectiveness of logistics. It includes real-time tracking of indicators, comparisons with planned values, as well as deviation analysis and decision-making. 

ERP in logistics uses it to track on-time delivery rates, calculate storage costs, and inventory accuracy. This reveals which links in the supply chain are most prone to problems, for example, a carrier is late in 30% of cases.

It also compares planned and actual readings.With automated alerts, the ERP system logistics warns about risks, such as supplier X delaying 40% of deliveries. Integration with partners eliminates the need for numerous calls asking, “Where is our product?” because everything is visible in the system.

According to statistics, 40% of companies reduced their IT costs after implementing ERP logistik software.

Optimized inventory management

Instead of keeping track of shortages and surpluses yourself, you can watch as everything is calculated and tracked automatically on your computer. The logistics ERP system analyzes sales history, seasonality, and trends, and then suggests how much and when to purchase goods.

This provides real-time control, allowing you to know the exact amount of goods remaining in all warehouses, including those already in transit. When orders are received, the system automatically reserves the goods, and sensors in the warehouses monitor storage conditions for you. The system controls inventory to ensure you can purchase more goods promptly, without overloading the warehouse. 

The ERP logistics system includes expiration date control, so you will receive advance notification that a batch of goods will spoil in 3 days. This can be particularly useful in the pharmaceutical industry, the chemical industry, and logistics. Here is one customer review after implementing X24:ERP:

“Before, we used to lose raw materials and have accounting problems. With X24:ERP, we can finally see the entire warehouse and production in the palm of our hand. It’s easier to work, losses are less, and customers are happier.” — Anna, production manager.

The result of implementing this system was a 95% increase in accounting accuracy and a 12% reduction in raw material losses.

Improved warehouse operations

Previously, inventory data was updated manually once a day or a week, but now the ERP system logistics uses sensors and barcodes to record all movements instantly. This automates almost all routine tasks:

• expiration date control;
• storage optimization;
• stock replenishment;
• warehouse operations routing;
• integration with equipment;
• analytics and reports.

Inventory accuracy is expected to increase by approximately 14%. Shipping speed will be no more than 1.5 hours, and storage costs are expected to decrease. Try starting with the WMS (warehouse management system) module in conjunction with ERP, and you will see a 70% effect in the first 3 months. 

Optimized transport management

Optimal routes are calculated automatically, taking into account traffic jams, road conditions, toll roads, restrictions, and customer schedules. The system can combine small orders into one vehicle and find additional loads, such as deliveries to a single shopping center. 

ERP software for logistics industry then optimizes the load by weight and volume. This includes GPS tracking with sensors for precise location, fuel consumption, and temperature, as well as notifications about delays, route deviations, and risks of cargo damage.

How ERP in logistics automates processes and reduces errors

Data from orders is immediately transferred to transport documents without re-entry. This eliminates classic errors such as mixed-up addresses, incorrect volumes, and duplicate invoices.

There is no longer any need to print out a stack of papers at the time of shipment — the driver signs the documents in the app, and they are immediately sent to the system. This approach saves time and prevents the courier from leaving without signatures or with an incomplete package.

Routes have also become more accurate. AI algorithms built into the ERP automatically select the route, taking into account traffic jams, road works, and weather conditions. The system suggests an updated route even before the driver heads toward a traffic jam. Most errors are eliminated in three areas:

This is how logistics becomes predictable: when the system counts, checks, and notifies, there is more time for work rather than debriefing.

Improving customer satisfaction

In logistics, customers expect simple things: accuracy, speed, and transparency. When an ERP system connects to artificial intelligence, predictability increases significantly. Forecasts are made based on current warehouse loads, traffic conditions, and carrier schedules — all of which help ensure on-time delivery without surprises.

Online tracking has become commonplace, but ERP provides detailed information: customers can see when their order has been packed, when it has been handed over to the driver, and where it is right now. This level of transparency reduces the flow of questions to customer support and saves time for both parties.

ERP in logistics can analyze customer behavior, including how frequently they place orders, which products they select, and their preferred delivery method. Based on this data, automatic suggestions are generated — not at random, but based on actual data. 

For example, for a customer who always orders on Fridays with evening delivery, the system offers a convenient time slot in advance. Alternatively, it recommends products that are most often purchased in conjunction with those already selected.

How ERP affects the real world

The main aspect of this is that buyers are satisfied, as they can obtain what they require with ease and without any fuss, as long as their goods are in stock. ERP is useful in forecasting demand and replenishing stocks promptly. Customers will not waste their time waiting, and the businesses will not lose money on stock.

This method can be more accurately utilized in assembly manufacturing. ERP in logistics and supply chain management helps ensure less material wastage and fewer defects. The system predicts and makes the necessary modifications to sign off on what is missing.

ERP saves fuel and/or emissions in logistics. One thing to note is that vehicles do not simply travel empty, and there is a planned route to minimize necessary driving distances. Instead of sporadic journeys that are costly and polluting, there is a clear path today: less spending, less exhaust. 

All these complexes are linked in a single chain, where decisions are not made at random but rather according to existing data.

ERP selection for logistics requirements

A good way to avoid being overwhelmed by choice is to define what you want to automate clearly. It may involve shipments, inventory management, routing, or document management — all of which may depend on your scale and specific challenges.

The second step is to ensure that the system can integrate with what you already have installed. In case you possess WMS, CRM, online cash registers, or payment modules, ERP for logistics industry should work with them without crutches. In its absence, automation turns into copying.

Budgets and schedules are not numbers. Others can be installed in a couple of weeks, while other systems take months. The features of the item do not determine the price; instead, the price is several times higher based on the amount of work required for customization. It is better to discuss this in advance, so we can customize a system for you and incorporate it into the calculation.

The final one is a trial run. A single warehouse, one direction, or one team. It is like a test drive: ERP for the logistics industry allows you to identify the system’s weaknesses even before it goes into circulation.

Simple points to note when making a choice

The initial approach is to determine which processes should be automated and which ones can remain unchanged. When the warehouse is always tidy and everything is in order, then it is useless to run after a complex system that would do everything.

The second factor is the ease of system operation. The interface should be straightforward and comprehensible to the team. Training may be a challenge in the initial stages, as it can be time-consuming beyond the setup process itself.

One should also consider how the system can integrate with other tools already in use by the firm. If your ERP is not compatible with your TMS (transportation management system), WMS, CRM, or accounting system, you will need to allocate additional resources to customize and improve them.

Last, choose a budget. An effective system needs to be invested in, but one should understand that expensive does not necessarily mean better. The trial run will help you determine the system’s functionality in a real-world situation to find out whether it suits your business.

Implementation tips

The review should begin by closely evaluating the processes that actually require automation, as opposed to those that should be based on manual procedures. Automation can be introduced in stages to avoid attempting to cover everything at once. Ensure you do not overlook the team. 

Employees are expected to be prepared to adapt and learn how to operate the logistics ERP system. It makes more sense to implement the pilot project first to trial the system in real-life conditions before bringing it to the entire company. Prior identification of those who will carry out the implementation is also handy. 

The latter may refer to an individual or a group that will facilitate the process, address issues, and offer encouragement throughout the transition.

Secure your logistics for future with Intobi

Valandinis faced challenges common in logistics-heavy industries: manual workflows led to errors, slow coordination, and poor real-time visibility. When they partnered with Intobi in June 2022, our team designed and delivered a scalable SaaS platform to automate assignments, schedule tracking, and mobile task updates — all aligned with ERP best practices.

After deploying the solution, Valandinis overcame main operational obstacles: seamless communication between office and field staff, real-time task progress visibility, and centralized budgeting control built into daily workflows.

Results achieved:

1. Automated team coordination, scheduling, and time tracking.
2. Unified project planning, budgeting, and facility oversight.
3. Real-time updates via web and mobile interfaces.
4. Detailed reporting for accountability and workflow clarity.

Discover how to bring ERP-grade logistics or any other type of automation into your operations — read more of our expert insights.

In final

You should plan in advance so that you are ready when changes occur. Logistics ERP software will enable you to automate your tasks and even anticipate the difficulties that may be faced in the future. 

Planning, taking into consideration various factors, and continuously analyzing data will help you make your logistics more resilient to external and internal stresses. The people who will be one step ahead will be those who predict and adapt to change quickly in the future. 

If you’re looking to audit or improve your logistics setup, contact us to explore practical solutions. Independent of what, whenever your logistics are all set, it will become your competitive strength.

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