Values of the Integrated Management in the Logistic Chain
The logistics management area covers the activities related to the physical flow of materials, semi-elaborated products, raw materials, and the acquisition by the initial providers from the sale to the consumers. This includes the storage, production and distribution of the products. The conception of the logistic environment in an integrated way is reached through the integration of all, and each of the activities that constitute it.
The vision of the logistic environment could be structured in three related layers: internal integration, external integration and total integration. Each of these layers should be analysed separately and as a whole.
The implementation of ERP in logistics strengthens the cooperation between providers, companies and clients involved in the logistic process. The communication improves the coordination of the agents entailed.
The main advantage of success is the possibility of focusing exclusively on the individual Business, as this will result in the reduction of costs, optimization of the services and the increase in profits.
All the logistic chains have indicators such as break of stock, date of delivery, and changes in the production line. This system will help to improve all those indicators. In general, all the logistic processes experience an improvement due to the increase in their flexibility.
Matters to Attend
When it is time to implement ERP, the logistic area needs to attend to certain matters in order to complete the functions. It is important to specialize in the implementation of the internal management of the logistic flow, taking into account each module that facilitates the operating of the activities involved.
Besides, the management of the whole logistic chain is relevant, as integrating it allows the providers and clients to use new technological platforms for unifying tools to accelerate the logistic process.
It is important to differentiate between concepts. The implementation of ERP it is not only the modernization of the corporate systems and reducing costs, but it is also the possibility of improving the sales and commercial planning due to the changing priorities. The planning should go further in the back-office area in order to use ERP systems to increase their possibilities and make large profits.
Requirements and Target
In every commercial and logistic company, the specific ERP software for the commercial area entails efficient structuring of all the corporate processes. Therefore, a complete streamlining and drastic reduction of costs is important. All the shapes of commerce and distribution, as well as the whole organization of the different companies, are represented by a system in an integrated way.
The heavy pressures exerted by the competition makes the concept of efficient logistic systems quite relevant. Besides, it is necessary to rely on services and additional provisions provided to clients, with the objective of creating a difference from the competitors. Likewise, most of the clients are expected to receive an additional service as an advantage (i.e. free shipping).
The specific requirements of the commercial and logistics area are represented by ERP for all the shapes of Business: retail and wholesale stores, import and export stores, distribution and service, shipping and transport. The staggered and universal character of the system has the significant advantage that allows the wholesalers and retailers to find the right solution to their problems.
Also, the importation and exportation commerce has special answers for their needs. The extension of different services offered to reinforce the orientation requirements of the clients are taken into account.
A distribution for clients focus on the costs and the consistent integration of the internal and external, with centres of distribution, expedition and transport companies, as well as the integration in the global system. It has become a rule in Business that the success in commerce demands an integrated logistic.
Many of the sectors of industry are experiencing the ERP system, and the areas of the industry vary from food and consumption to the chemical, cosmetic, and pharmaceutical companies. Besides, all the mixed ranges of the retail and wholesale commerce could be represented in a flexible and escalating way. Moreover, the options and specific requirements of the textile and fashion industries, as well as the electronic and entertainment industries are integrated by processes and solutions in a global system.
ERP Logistics Main Features
The decision to implement ERP allows Businesses to make the daily tasks simpler through the correct control of the logistic, production and counter sales. The possibility of tracing back in time to forecast provides a clear and reliable sight of the origin and destiny of the lot. The liquidations for transports could be done with rates previously defined.
The purchasing and selling of contracts is easy to handle with prearranged dates for delivery and the collection of payment. The system is also helpful in easily calculating the costs of financing, transport and storage, as well as carriage payments, profit margins, benefits and intermediaries.
ERP provides control panels for merchandising, whether packed or in bulk. With this system, the necessary quantities can be processed or delivered, depending on the respective prices of the purchase and sale. This feature is fundamental in having proper control over all the activities that are directly or indirectly related to the logistics.
There are specific modules for the satisfaction and needs of this particular sector. Some of the more common shared by all the enterprise resource management includes the standard module, the production module and the transport module. The first one offers the functions of basic maintenance with are related to the application like clients, providers, products, warehouses, and taxes.
One of the most important objectives of the standard module is to control and display the purchasing contracts with providers and the sale with clients. This is based on the material entries, and each entry for storage, merchandise origin, and specific weights are saved in a controlled way.
In regards to the production module, the user will be able to handle all the management of the production orders, packaging, and cleaning expenses. The system also provides the user with the ability to look up the past orders and modify them to create new ones. Besides, there is a special control display, where all the details of stocks and product prices are available.
Finally, the transport module offers the advantages of maintaining of transports, typing the expenses for each transport depending the origin and destiny, and also making the liquidations for transports based on the prearranged fees.
The conclusion of the main objectives of the implementation of ERP is to provide the organization with a simpler method of managing and integrating the Business controls of the logistics. The merchandise in stock and the production of products is also crucially important.
With the use of this program to collect information about the clients, providers, products, storage, and selling of contracts, it is an easy task that could help save money and time. It is a great advantage to consider this like an investment rather than an expense.
The decision to improve the possibilities, taking into account the integration of the activities, and the logistics will lead into better relationships with the providers and clients. It will win flexibility and therefore increase the profits in a Business.
