Transportation companies need to deal with a lot of moving parts, especially if they operate on a global scale. Managing inventory, logistics, deliveries, and staff takes a significant amount of time and organization, no matter the company’s size.
That’s why so many transportation companies use enterprise resource planning (ERP) software to manage every aspect of their company.
This article will review what ERP software is and how it benefits companies in the transportation industry.
Understanding ERP Software
ERP software improves operations within a company. Companies in any industry can use it to operate business processes from one platform.
ERP software provides insight into every department within a company, giving teams instant access to any information they need from any device.
One of the primary benefits of ERP software for organizations is that it provides real-time data. This is particularly important for transportation companies that rely on having access to the most up-to-date information at all times.
10 Ways Transportation Companies Can Benefit from ERP Software
Here are some specific ways ERP software can benefit your transportation company.
1. Manage and control inventory
Staying on top of inventory is critical for a transportation company. With ERP software, you can get the status of all your inventory from one convenient dashboard. This includes seeing orders, inbound and outbound shipments, deliveries, and more. Having access to your company’s entire inventory can save a lot of time, especially if your transportation company has multiple warehouses.
In addition to just seeing what’s in your inventory, your ERP software can alert you when products are out of stock, or there are any issues with an order or delivery. This allows you to solve problems faster and get items where they need to be as efficiently as possible.
2. Make better decisions about the future
Inventory management does more than just keep track of current inventory. It can also help you make smarter business decisions in the future when you track your inventory data.
For example, you can identify which items seem to always be out of stock so you can look for new distributors. Or you can assess locations and areas that seem to have consistent delivery issues so you can implement changes to optimize deliveries.
At the same time, knowing which items are always in stock or are even overstocked can save you from keeping more inventory than you need. This reduces your overall costs and can free up space in your warehouse for other items.
3. Optimized fleet scheduling
Managing your fleet is likely the most time-consuming and expensive part of running your business. ERP software can help by optimizing your fleet’s routes based on real-time traffic information. As a result, you can cut down on excess fuel costs and improve your overall efficiency without adding anyone to your payroll.
4. Reduce maintenance costs
With ERP software, you can get real-time maintenance alerts anytime a truck needs to be repaired. In addition, you can set up preventative maintenance reports, so you always know which vehicles need to be serviced and when. This can help you manage your fleet more efficiently and avoid costly (and time-consuming) breakdowns on the road.
5. Reduce redundancies
Often, transportation companies find that their departments work in silos and don’t share information with each other frequently. This can result in redundant work that wastes company time and money.
With ERP software, every team member can have quick access to reports, data, and other pertinent information. By operating from a single dashboard, every team will know what every other team is working on, eliminating duplicate work and redundancies.
6. Allows you to scale your business
ERP software can help businesses of all sizes, from small one-person operations to large enterprises. So, if you get ERP software as a small business, it will grow and scale with you. This will save you time and money later on because you’ll already have the right processes in place and won’t need to completely overhaul your software in the future.
7. Improve customer experience
ERP software doesn’t just benefit transportation companies and their employees. It can also help customers who want to know when they’ll get their deliveries.
By providing real-time updates and information, ERP software lets customers know exactly where their packages are and when they are set to arrive. They can also contact the company if they have questions about their upcoming deliveries.
8. Reduce human error
Part of running a company means you’ll have to do some menial tasks, like data entry and reporting. When people do these tasks, it’s easy to make mistakes. Unfortunately, minor errors can add up to considerable costs in the transportation industry.
ERP software can take over many manual tasks to eliminate errors. At the same time, automating tasks can save time and free business owners up to work on business areas that need more of their attention.
9. Improved billing process
Staying on top of invoices can be a major headache for transportation companies. ERP software can improve the billing process by automating invoices, tracking payments, and customizing contracts. This can greatly enhance your company’s cash flow and allow you to grow at a faster rate.
10. Manage employees
Remember how we said ERP software connects every department in your company? That includes human resources! ERP software can help your HR team stay on top of employee hours, PTO, and payroll. It can also automate employee scheduling and keep track of employee performance.
Does Your Transportation Company Need ERP Software? Let’s Talk!
If your transportation company isn’t currently using ERP software, you’re likely wasting a lot of time and money without even realizing it. We’d love to help you get more time back in your day so you can focus on other aspects of your business.
Need help with your Odoo ERP Implementation?
At Confianz, we’re experts in ERP software. Our Team has helped some of the finest business in the US to Implement & Customize Odoo ERP. Confianz Global is an Odoo Gold Partner.
Contact us to schedule an introductory call where we can learn more about your business and make suggestions for how ERP software can help you stay organized and run more efficiently.
