ERP Requirements in Logistics

Logistics is not just about trucks, planes, and ships carrying cargo. Primarily, it is a powerful organizational component that ensures the smooth and timely delivery of goods to the most remote corners of the world.

In the past, planning and process construction were handled by significant teams of specialists, analysts, and managers.

Today, however, modern digital systems like ERP have taken their place.

This doesn’t mean you can simply take any SaaS, deploy it in your company, and instantly boost productivity and profitability. For the transportation industry, it is critically important to adhere to a number of factors when creating and implementing an enterprise system.

Today, you will learn about some specific features of ERP for this niche, as well as typical requirements for these types of products, including insights based on previous cases from the AdvantISS team.

Features of ERP for Logistics

One might wonder what could be so special about ERP for the logistics segment. Classic components, variable modules, standard UI/UX requirements — however, the devil is in the details. 

To maximize profits from the digital infrastructure, a logistics ERP must:

• Meet industry requirements and the specific needs of the business and its personnel.
• Be compatible with the rest of the system components.
• Have a flexible architecture with the ability to quickly connect modules like WMS, SCMS, etc.
• Be understandable even to non-technical staff.
• Provide instant access to critical functions from a single control screen.
• Have a sufficient level of protection, including against internal risks.
• Be relatively inexpensive to produce and maintain.
• Provide enough space for future scaling.

Agreed, these are concepts, but they characterize logistics ERP.

By the way, these are the real requirements that logistics business owners typically set when planning the development of such solutions. Let's discuss them further.

Custom Product Requirements

Of course, each company prioritizes ERP development according to its business needs. However, some aspects occur so frequently that they should already be industry standards, at least in logistics.

Here are a few requirements that the AdvantISS team encounters in nearly every ERP development project for transportation companies.

Real-time Data Tracking by QR Codes

A module for tracking cargo, individual items, and inventory via QR codes is the foundation of any WMS, but it is somewhat less common in ERP systems.

In practice, such a system implementation is viable as it improves internal accounting and automates several processes. For instance, it provides more comprehensive information about the current status of an order to both the enterprise operator and the client (the customer, sender, or recipient).

Dashboard with Up-to-date Logistics Information

It’s convenient when personnel can see all critical information on the main screen of the platform. Therefore, a dashboard with smart UI/UX is one of the key elements of ERP.

The performance of personnel, their interoperability, the speed of order processing, and decision-making based on the current situation all depend on this component. The dashboard also affects the ease of interaction between personnel and the system, which in turn impacts their work efficiency and the business's profitability.

Automatic Report Generation

Working with reports takes as much time as other ongoing processes within a company. A quality logistics ERP can automatically collect and store data, process it on demand, and generate various types of reports.

This capability allows managers and executives to make informed decisions regarding process optimization, business scaling, and more.

Web and Mobile Apps for Enterprise Mobility

Business management is increasingly happening outside of office environments. Therefore, it is important for companies, especially in logistics, that staff can work with ERP remotely — from home, public transport, a park, or a café.

Moreover, there are situations when the presence of a dispatcher or another company representative is required, and they need access to the corporate network. Mobile solutions in the context of EMS can provide reliable support for employees in both routine and extraordinary situations.

Temperature Monitoring

Not all cargo is undemanding regarding transportation conditions. Some items, typically transported in refrigerated containers and tankers, require constant monitoring of the internal environment, particularly temperature.

In such cases, a special infrastructure is created based on IoT devices, which integrates with ERP and provides the operator with real-time information about the container's status.

User Access Control

Not all data should be accessible to company employees. Therefore, it is essential to create a multi-level access control system for a logistics ERP.

For example, a manager processing requests will only see data relevant to their process, while a business analyst will have broader access to corporate information.

Automated Data Entry

Order data, employee information, and accounting — these elements often require manual input and verification. A quality ERP can automate data entry into the system, as well as its analysis and processing.

As a result, the company achieves faster and more accurate accounting.

Data Backup and Recovery

Information is the lifeblood of a business. If a company loses any data, it risks entering a situation conceptually similar to a system collapse, with corresponding consequences.

Thus, ERP must not only process data but also store it, create backups, encrypt it, and restore it completely or partially as needed.

In Summary

I want to emphasize again: ERP requirements are formed exclusively in the context of a company's needs.

Even two similar logistics companies can have completely different requirements for a new system.

When planning ERP development, first assess the current state of your infrastructure, analyze its weaknesses, and create requirements that you believe will improve the company's productivity and profitability.

Don’t know where to start?

Leave a description of your problem in the comments, and I’ll try to help!