Supply Chain Management

ERP Systems: the Time To Come of supply chain efficiency

ERP Systems

For companies operating a distribution chain, making certain that their logistics are as up to date as possible is essential to optimizing performance.

The process of producing an efficient and effective supply chain is complicated. Handling a lot of moving parts to ultimately deliver a product or part to some customers can hit problems at any point. The further information concerning the individual phases of supply chain managers may have, the greater the support they can deliver.

One of the major logistical problems supply chains face is keeping costs in check. For big companies whose supply chain may involve hundreds of commercial vehicles, the prices from running these vehicles can grow quickly and have a significant impact on the financing of the business. High fuel usage is frequently an integral contributor to increased running costs. By applying vehicle tracking technology, fleet supervisors have a lot of ways of better controlling gas use across their fleet and supply chain.

Firstly, after installing telematics devices throughout their commercial fleet, fleet supervisors have access to a considerable amount of data showing the action of individual drivers and their fleet in general. Because of this, fleet managers can identify drivers during a distribution chain who could be using a higher than the optimal degree of fuel. After identifying individual drivers, managers can design specific instructions to assist them to enhance their driving design to reduce fuel consumption.

Another manner in which automobile tracking helps enhance fuel consumption is through in-cab coaching systems. These systems alert drivers to actions that contribute to high fuel use such as speeding, harsh acceleration, and engine idling. Because drivers are alerted through sound and visual signs to these activities, they can self-correct their behavior and drive in a more fuel-efficient manner. Research has revealed that when drivers were receiving this kind of comment, they spent significantly less time with their engines idling than a motorist who wasn’t receiving any feedback. Around a whole calendar year, for an entire business fleet, this can result in significant savings.

Things going missing or being lost could be a significant problem for businesses operating a distribution chain. 1 way of mitigating this matter is to track parts using systems like QR codes, barcode or RFID codes. By blending this with vehicle tracking, managers can have a thorough picture of the exact motions of products. If things don’t reach their intended location, the data is available to see exactly which vehicle the items had been loaded onto and where that vehicle moved. Through this, products could be found and returned to their intended location.

Another vital area with any distribution chain is ensuring drivers are taking the time and fuel-efficient routes between locations. While most supply chains wouldn’t shut down if any item was postponed, for smaller businesses, it can cause problems further down the series. Vehicle tracking data can show the accurate live location of each vehicle in a chain. If there are any difficulties with locating a car that may be late for a delivery or collection, this may be carried out quickly with vehicle tracking. This is not just helpful for the supply chain since vehicles can arrive at destinations quicker, but at the final point where goods are delivered to customers, this can happen more quickly and increase the number of deliveries that may take place during a day. This may be quite beneficial as a means to improve customer service and satisfaction when dealing with a firm.

In general, for companies operating a distribution chain, installing business vehicle tracking technology can be helpful in several important places. By giving a greater understanding of how their fleet is operating within their distribution chain, fleet managers can enhance operational performance and endurance. This can not just lead to financial savings but greater customer satisfaction, each of which is beneficial to a business in the long and short term.

Written by
Isla Genesis

Isla Genesis is social media manager of The Tech Trend. She did MBA in marketing and leveraging social media. Isla is also a passionate, writing a upcoming book on marketing stats, travel lover and photographer.

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