5 signs that your business needs an ERP system

Have you ever been in a situation where it took an entire day just to synthesize data from warehouse, transportation and accounting, or received consecutive calls complaining about late delivery but no one knew exactly where the order was? Or the inventory is full but the goods customers need are not available? These problems not only cause customers to lose trust, but also increase operating costs and reduce profits. This is the reality of many small and medium-sized logistics businesses when they have to manage fragmented data, manual processes and lack of connection between departments.

The ERP system is no longer a luxury tool for large corporations, but an essential solution to help SMEs optimize operations, reduce errors and enhance competitive advantage. In this article, we will learn what ERP is, its benefits to the logistics industry and the 5 clearest signs that your business needs to implement ERP immediately.

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5 signs that your business needs a system ERP

Sign 1: No ERP system causes loose data fragmented, managed on many manual tools

You are using many Excel files, Google Sheets, Zalo, Viber or discrete software to manage work. Each department (sales, warehouse, transportation, accounting) has its own way of working, without connection.

Every time you need a comprehensive report on revenue, costs or performance, you have to spend hours, even days, synthesizing data from many different sources. This process is not only time-consuming but also carries a huge risk of errors.

For example, an order is canceled but the information is not updated promptly between the sales department and the warehouse, resulting in the goods still being packaged and shipped, causing waste. According to a survey, logistics businesses spend an average of 20% of their working time just synthesizing and processing data manually.

ERP is a centralized management system. All data from orders, inventory, shipping, and finance is stored and updated in real time on a single platform. Thanks to that, you can access information anytime, anywhere and receive comprehensive reports in just a few clicks.

*Distributed and inconsistent data management*

Sign 2: Inaccurate and ineffective inventory management

You do not know the exact amount of inventory at each warehouse, at each time. Taking inventory regularly is labor-intensive and the results are unreliable.

You may encounter a sudden “out of stock” situation, missing important orders, while some other items stay in stock for too long, taking up capital and space. This situation not only causes loss of revenue but also reduces reputation with partners and customers.

For example, a large customer orders 1000 products but you only check inventory with Excel and think there is enough stock. When you’re ready to ship out, you discover there are only 800 products left, leading to delivery delays and customer complaints.

The ERP system provides real-time inventory management tools. Every time there is an import, export or warehouse transfer, the data will be updated automatically. You can easily track inventory quantity, location, and value of goods accurately, helping to make purchasing decisions and move goods effectively.

*Order processing and inventory take a long time*

Sign 3: Difficult to control operating costs, reduced profits

You only know the overall monthly costs without knowing the detailed logistics costs for each specific order, including fuel, labor, and vehicle maintenance costs.

When costs cannot be controlled, it will be difficult for you to optimize service prices to compete. Your business’s profits can be eroded without you knowing the exact cause.

For example, you feel profits dropped 15% in the most recent quarter but can’t pinpoint which expenses are rising. It could be a sudden increase in gasoline costs, or an increase in labor costs due to inefficient routes.

ERP integrates a powerful finance – accounting module, helping you track all income and expenses related to each order. You can easily create detailed reports on profits and operating costs, thereby devising a strategy to cut unnecessary expenses and optimize performance.

*Difficulty keeping track of finances and accounting*

Sign 4: Delayed delivery, customers complain a lot

Order information from the sales department is not updated promptly to the warehouse and transportation team. Drivers do not know the exact optimal route and do not have tools to update delivery status in real time.

Untimely deliveries cause customers to lose trust and switch to competitors. The reputation of the business has seriously decreased, directly affecting revenue. According to a report from HubSpot, 90% of customers expect immediate feedback on order status. If you cannot satisfy them, they will not hesitate to find other partners.

ERP helps synchronize data between sales, warehouse and transportation departments. As soon as an order is received, the system automatically notifies the warehouse for preparation, and provides optimal route information for the transportation team. Customers can also track order status in real time through the integrated portal, helping to improve satisfaction.

*Delayed delivery, many customer complaints*

Sign 5: Complicated process, consuming a lot of manpower and time

A simple operation such as confirming an order must go through many people and many manual steps, thereby taking a lot of time and effort. Everyone works sporadically, without a standardized process.

Low employee productivity, high personnel costs. It is difficult for businesses to scale when every process depends on people.

For example, to process an order, the sales staff must enter data into Excel, then email it to the warehouse staff, and the warehouse staff must print the export slip, then send it to the accountant. This complex chain of processes takes a lot of time and is prone to errors.

ERP automates most processes, from order processing, warehouse management, invoicing, to financial reporting. With a standardized system set up, employees only need to operate on one platform, helping to reduce manual steps and increase productivity by up to 40% (according to estimates by technology consultants).

*Disjointed, disconnected business processes*

Optimal Odoo ERP solution for logistics businesses

Criteria for choosing suitable ERP software

When choosing an ERP system, small and medium-sized logistics businesses should consider the following criteria:

Easy to deploy, reasonable cost: Prioritize solutions with low initial investment costs, can be deployed in each module and easily expanded.
Flexible integration: The ability to integrate with existing sales management and accounting management software is an advantage.
Customized for the logistics industry: The system must have specific features such as transport route management, order status tracking, and in-depth warehouse management.

Odoo ERP: Flexible and economical ERP solution for businesses

Odoo ERP is one of the leading open source ERP solutions, highly appreciated for its flexibility and reasonable cost, very suitable for small and medium-sized logistics businesses.

Entire process integration: Odoo provides modules from Warehouse, Transportation, Sales, Purchasing to Accounting, helping to manage all activities on a single platform.
Supports centralized data management: All data is stored and synchronized in real time, helping management have an overall view of business operations.
Fast deployment, long-term upgrade support: With Odoo, businesses can start with basic modules and gradually expand as the scale grows, ensuring flexibility and saving investment costs.

Long-term benefits when applying ERP system

Improving competitiveness

When processes are automated and optimized, businesses can provide faster, more accurate delivery and at a more competitive cost. This helps you create a sustainable advantage in the market.

Optimize costs and increase profits

By strictly controlling costs and increasing work efficiency, ERP helps businesses minimize waste and maximize profits.

Improving customer experience

Customers will always be satisfied when their orders are processed quickly, accurately and can be tracked easily. This helps strengthen trust and create lasting relationships.

Have you noticed one or more of the above signs in your business? Don’t let your competitors surpass you just because they have more efficient operating processes!

Instead of continuing to face existing problems, take action today to take your business to the next level.

Register now for a free demo to experience how the Odoo ERP system helps your logistics business operate smoothly, efficiently and grow sustainably.