Boost Shipping Efficiency with ERP
The global economy requires businesses to rethink how they manage their supply chain. Today’s customer, be it a retailer or a consumer, demands that orders be fulfilled and delivered on time and with minimal error. Today’s manufacturing and wholesale sectors are under ever-increasing pressure to streamline their supply chain operations and enhance their efficiency to achieve this end. Enterprise resource planning (ERP) systems have therefore become the mainstay in this effort because companies can implement real-time tracking and inventory controls that offer an accurate, real-time picture of how products and goods are moving throughout the global supply chain. Without a reliable ERP system in place, businesses are at risk of creating numerous delivery errors that could result in an inefficient order-fulfilment system.
Real-Time, Accurate Inventory Reporting
With the advent of immediate order fulfilment, businesses must have a clear picture of vendor lead times that allows them to reduce inventory errors by keeping tabs on the products or goods they must acquire for redistributed at a moment’s notice. Without this ability, the company may not be able to keep the promised delivery time, resulting in less-than-satisfied customers, and creating bottlenecks in the shipping process later. ERP systems are designed to give businesses control over this once-obscure component of supply chain management and will ensure that they always know what is available and what will be available at a glance.
Many instances of late or unfulfilled deliveries can be traced to poor operational insight, especially during an extremely busy time. Holidays and other seasonal surges can quickly overpower a company’s capacity to fulfil orders because of lack of manpower or the delivery system itself running at or near operating capacity. Without this critical element of operational insight, businesses will not be able to curtail current orders and will quickly find themselves playing a game of catch-up, which, once again leads to poor customer satisfaction and ultimately reduced sales.
Consumer confidence can be tied directly to a company’s ability to track an order. Where companies used to rely on reputation alone, real-time consumer tracking is now the standard in today’s business environment. A poorly managed supply chain will cause the customer to doubt whether the company is processing the order, which will in turn cause a loss of repeat business and harm to the company’s reputation. With a modern ERP system, a business can easily allow a customer to track an order in real time, which can also help the business avoid returns if the customer needs to make a change before order fulfilment but cannot access the order’s status. Ultimately, the more transparent the order-fulfilment process, the more confidence the customer will have when making a purchasing decision, ultimately leading to increased revenue and even great shipping efficiency.