Why Using an ERP Solution for the Shipping Industry?

The logistics and shipping industry is rightfully regarded as a task-intensive industry that needs to connect multiple processes to get things done. What appears to be a simple delivery of goods from one country to another, actually involves a complex network of obligations, tasks, responsibilities, and human roles in different capacities. From managing the documentation of the transported goods to sending instructions for delivery to meeting international regulations and norms, there are too many aspects that need to be taken care of.

To make things even more complex for the shipping and logistics service providers, they now need to deal with the assignments from both traditional businesses and online brands. This gave rise to a whole array of digitized solutions and applications corresponding to shipping services, inbound inventory management, digital warehousing, etc. All these also require handling numerous tasks.

An Enterprise Resource Management (ERP) software comes as a handy solution to deal with these tasks in a systematic and organized manner while providing the shipping and logistics service provider full control over the entire operation. When a business embraces a new ERP solution or upgrade ERP system with advanced features, it basically helps the business with ease of planning, managing, and executing a variety of logistics and shopping tasks more efficiently. ERP software for the logistics and shipping industry is known to deliver a scalable solution to handle all logistics and shipping transactions in an efficient manner.

Here we are going to explain some of the most important benefits of ERP systems for the logistics and shipping industry.

Securely Accessing Vendor Websites

The most important benefits of an ERP system on logistics and shipping are the secure and smooth access that it provides to vendor websites. Since each ERP software solution used in the logistics operations comes equipped with a secured login option for registered users, this makes the process easier by allowing secure access to the delivery and other details in the shipping process. Moreover, this also facilitates well-synced communication through integrated email and messaging systems and getting updates from users in their personal profiles.

Enhanced Inventory Management and Stock Maintenance

One of the efficiency of the most crucial way in operation can be maintained in the logistics business is through inventory management. Comprehensive inventory management requires maintaining stocks, requests, deliveries on the route, and the sales reports. Thanks to ERP software all these aspects and components can be brought under a single dashboard and this will allow the logistics company to keep track of the up-to-date inventory status. Since inventory management is a crucial part of the efficient logistics operation, the role of ERP software proves to be important.

Thanks to the modern ERP systems any business can handle all the inbound and outbound orders based upon the current stock status and accordingly can facilitate delivery and procurement in an efficient manner. Thanks to the updated information about the inventory status, the strategic decision making of the business leaders becomes more informed, context-aware, and faster.

Easier Maintenance of Transportation

For the entire logistics and shipping industry, the biggest assets are probably the vehicles and the drivers who are driving those vehicles from one destination to another. But as a product needs to pass through multiple transit routes and gateways keeping track of their scheduled timing becomes more complex and difficult. Such complexities in effect can hamper the efficiency of the logistics company tremendously. This is where an ERP system can help by offering complete visibility of the entire maze of transport transits the goods are supposed to pass through. Thanks to ERP systems logistics businesses can exercise far better control over the on-road vehicle transits and their time schedules.

Real-time Tracking of Shipments

Shipment tracking during transit is one of the latest means to boost efficiency and control for the logistics businesses around the world. But tracking the shipments during transit is also difficult and involves some advanced hi-tech means. The ERP software solutions now come with features for real-time tracking features to allow access to the real-time vehicle location.

The modern ERP systems also allow communicating with vehicle drivers and logistics personnel. Thanks to such an ERP system features real-time tracking of the shipping became easier than ever before. Apart from having greater control, such highly equipped ERP systems also help in grabbing more relevant on-road transit data for future decisions on logistics management.

Thanks to the use of an ERP system, a shipping and logistics company can ensure managing the below-mentioned aspects more efficiently.

  • Vessel and vehicle performance
  • Ensuring enhanced vehicle and vessel efficiency and ROI
  • Better control on a budget
  • Managing transaction values for multiple currencies
  • Integrated payment management and gateways
  • Controlling provisions
  • Managing fixed assets

Reduced Shipping Costs

Shipping is a critical aspect for retail companies to manage and control operational costs and give customers competitive benefits. While shipping costs incurred through sales can help a company manage better revenue, by waiving the shipping costs the companies can enjoy a competitive edge in the market. This is why to make a data-driven accurate decision in the shipping cost component is crucial for both improving sales and meeting costs. Modern ERP systems by providing precise data on the entire transit route and cost at every level offer far better control on the shipping cost.

Handling Operations for Manufacturing and Distribution 

The vast majority of manufacturing and wholesale distribution businesses thanks to modern ERP software solutions can enjoy far advanced features and functionalities to handle all tasks such as receiving, packing, picking, and shipping. Consequently, an ERP system for such companies works as a powerful mechanism to ensure that the customers get the right product at the right time.

Some of the key abilities of ERP systems to help manufacturing and distribution businesses while shipping their products include managing resources, integrating with logistics and shipping carries, inventory management, maintaining shipping history, etc.

Integration with the shipping and logistics carriers or service providers is a key feature of ERP systems that businesses across all niches find helpful. The inbuilt integration of the carriers helps businesses generate labels quicker and filling required information for the shipping processes without paperwork.

Boosting Customer Satisfaction 

Finally, ERP systems ensure boosting customer satisfaction through streamlined and efficient logistics operation and delivery of goods. This becomes possible through precise planning of production, scheduled processes, better inventory control, and granular-level coordination of the distribution channels. The end result is more timely delivery, faster responses, and more visibility for the customers for their goods in transit. Thanks to the ERP solutions integrated into the shipping processes, customers enjoy better services.


Since ERP systems came in a big way to transform the business distribution channels and shipping and logistics across the niches, they continued to grow as an important component of modern operational mechanisms and strategic tools for decision making. As businesses over the years have experienced the massive role of ERP software systems, now companies tend to spend close to a quarter of their budget on ERP software with rich features for distribution channel management, shipping, and logistics. Since every business is focused upon reducing the operational cause and process silos, they are likely to give ERP systems more priority in their management approach than ever before.

Yakshit Bose is the Senior Developer at leading CMS Development Services Provider Company CMARIX Technolabs Pvt. Ltd. He is an experienced, developer. He likes to share his thoughts on Web development, CMS development, and Technology News.