ERP system in warehouse logistics

Warehouse logistics includes the processes of receiving goods, storing them, complete preparation of orders and shipping those orders. Simple? Not if you carefully define each of these issues, break them down into their essentials and identify the activities that need to be performed within them. It should also be taken into account that in an enterprise based on logistics services, the smallest mistake can cost dearly, and the efficiency of the implemented processes is given priority.

Efficient operation of a warehouse requires optimization of all aspects of its functioning. Modern solutions aimed at the aforementioned process optimization are constantly being implemented. The level of services offered must remain high, at the same time the costs of these activities must not increase – they are sought to be minimized.

ERP system: A modern tool for managing company resources

Gone irrevocably are the days when warehouse logistics was based on hand-written notes. Modern information systems have replaced notebooks and pens. Enterprise resource planning (ERP) is not only a method of managing resources, but also the name for information systems for this purpose.

One such system is an ERP system. It is a type of IT software for managing enterprise resources. With its help, it is possible not only to plan activities, but also to coordinate the flow of information and data between departments of a given company.

ERP system in warehouse logistics

ERP system modules: Key functionalities for the logistics industry

The ERP system has a modular structure, which means that it consists of cooperating but rather independent applications, whose work is based on access to usually one database. This system architecture makes it easy to adapt the system itself to the needs of a particular company.

Individual modules of the ERP system may concern logistics itself, administration and finance, human resources, project management, quality control or maintenance of equipment used in the company. We are, of course, most interested in the modules related to logistics itself. They concern production, warehousing, procurement and sales. The ERP system handles order placement, manages the contact with the supplier, records the moment the goods arrive, marks them with a unique SKU designation, keeps the inventory up-to-date, receives and processes orders, keeps a record of goods released from the warehouse, participates in the approval of invoices to suppliers and in the processing of payments.

ERP and WMS integration: effective supply chain management

ERP is not a complete system for exercising control over the supply chain. While it can be used on its own, it is only when it is integrated with a WMS (Warehouse Management System), which enables more advanced logistics operations, makes both systems work to their maximum efficiency (we will devote a separate article to this system).

The great advantage of implementing an ERP system in a company is the unification of the way of viewing data, streamlining of business processes, fast order processing, efficient flow of information and data and, above all, optimization of inventory management processes, which is crucial in the case of logistics warehouse management. It helps maintain a high level of customer service, human resources management and accounting.

Nowadays, we can’t imagine our functioning without access to the opportunities provided by the use of modern applications and online databases, social media or selected technological gains. Our daily and professional lives are increasingly correlated with specific information systems and modern equipment. This principle also applies to the logistics industry. The efficient operation of a modern, large logistics warehouse would no longer be possible without implemented information systems.