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Benefits of ERP for Distribution and Logistics Companies

supply chain

Written by Laura Schomaker

November 5, 2021

Running a successful distribution or logistics company involves many moving parts. In fact, that’s an understatement. When you operate a business in this space, it means having to stay on top of an endless list of details while also maintaining a bird’s-eye view of everything along the way. ERP can be an essential tool in doing this. The benefits of ERP for distribution and logistics companies are many. Specifically, it provides you with a unified logistics solution, allowing you to streamline processes and your supply chain from A to Z.  

Detailed Demand Planning 

One of the biggest burdens in distribution and logistics is planning for customer demand. This can sometimes seem like an art mixed in with guesswork, but with the right data on hand, it can be a science. That’s what ERP does in the distribution space. It gives you a detailed view of inventory, for one, as well as predictive analytics, which allows you to more accurately forecast demand based on historical data.   

More Efficient Reporting and Inventory Management 

Of course, managing large-scale inventory is no simple task, either. With an ERP solution designed to excel in logistics and distribution, such as Acumatica, you can track items across multiple locations, get alerts when it’s time to reorder stock and see where items are in transit. This transparency streamlines warehouse processes and makes management’s job much easier. The complex reports available in a modern ERP solution do not stop there, either. The comprehensive reporting available in ERP can allow you to make informed and strategic adjustments along your entire supply chain.  

Enhanced Automation 

Manual processes invite human error. They also consume work hours. ERP steps in at this crucial pain point to automate everything. With the enhanced automation available in today’s ERP solutions, you can lighten workloads across your company and eliminate errors, resulting in more efficient, revenue-generating processes.  

Leveraging That Single Pane of Glass 

Maybe one of the greatest benefits of ERP for distribution and logistics companies is the increased visibility you get with this solution. ERP serves as a unifier, bringing all data from across your supply chain into one place where you can view, assess, and make adjustments. The system details every data point from procurement to a final sale in your ERP, allowing you to identify bottlenecks, inefficiencies, and more to make the best business decisions possible. 

Improved Customer Service 

Another major plus for distribution and logistics companies using ERP? The improvements it brings to your customer service. With a detailed view of your entire supply chain, it will better equip you to identify CS issues before they happen. If a problem does surface, you can address it fast. Everyone at your company who touches a customer file will work on the same customer data, ensuring a consistent customer experience. It’s no exaggeration to say ERP enables fast response to customer demands and concerns and will make your business look far more efficient and professional operation in the eyes of your customers.   

ERP is transforming several spaces, but its impact on logistics may be its greatest. Are you in logistics and using ERP? Tell us all about it below. If you want to explore how ERP can transform your distribution and logistics company, begin exploring your options today 

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