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.
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.
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.