Logistics is one of those industries that requires the most amount of planning and strategizing. And rightfully so! It involves multiple people, vehicles, inventory planning, route optimizing, and what not. So ERP in logistics opened up a dedicated plan to keep everything running smoothly is indispensable to the industry.
Currently, there are more than 5 million logistics companies, including small scale and large scale ones who perform domestic and international deliveries. And out of them, 3.2 million use dedicated ERP systems.
In 2025, the logistics industry is valued at USD 11.23 trillion and is set to reach USD 15.79 trillion by 2028, growing at a CAGR of 6.3%. That means an increasing number of ERPs joining the roster. But a few ERPs, which are already creating an impact in the logistics industry include SAP S/4HANA, Oracle NetSuite ERP, Microsoft Dynamics 365, and Odoo ERP.
With global partnerships skyrocketing and the import/export industry going through major replenishments, the number of ships and trucks getting added to the logistics system is higher than ever. Hence, the requirement of an ERP is now more than ever.
Before we discuss more about the advantages of ERP in logistics, let’s look at a few ERPs, which are already leaving sizable impact in the logistics industry:
NetSuite is frequently cited as an all-around top ERP solution that offers a fully cloud-native SaaS platform optimized for scalability and accessibility. Built on Oracle Cloud Infrastructure, it delivers seamless updates and multi-entity financial management, supporting global compliance alongside advanced supply chain and warehouse management functionalities. NetSuite’s demand planning, real-time inventory visibility, and warehouse management system (WMS) features such as barcode scanning and wave picking, streamline logistics workflows effectively.
SAP S/4HANA offers an enterprise-grade solution preferred by the large-scale logistics industry requiring flexible deployment models, including cloud, on-premises, or hybrid environments. Powered by the SAP HANA database, it provides real-time analytics capabilities, advanced production scheduling, capacity planning, and detailed supplier management. Its integration with the broader SAP ecosystem, including SAP Ariba and Integrated Business Planning platforms, makes it highly suitable for industries like automotive and healthcare with intricate supply chains. The system’s AI-driven predictive analytics, machine learning, and inbuilt automation improve resource utilization, forecasting accuracy, and operational efficiency.
Microsoft Dynamics 365 merges ERP and CRM capabilities to provide tools for supply chain, financial management, and AI-powered analytics customized for midmarket to large enterprises. Its modular architecture allows businesses to adapt and scale operations as needed, incorporating features that support real-time data sharing, automated workflow, and comprehensive finance and sales integration.
Odoo, an open-source ERP platform, offers a wide range of modules that cover logistics, warehouse operations, and sales, providing customizable options suited for various business sizes seeking cost-effective ERP solutions.
Why is ERP in Logistics Becoming a Trend?
ERP has ensured better customer experience for several industries including the logistics industry. By integrating CRMs into ERPs, logistics operators streamline communication with customers through automated alerts and updates about shipping status. ERP also enables personalized service by storing detailed customer histories and preferences, allowing logistics firms to customize their interactions. All these minimize errors and delays, leading to higher customer satisfaction and trust.
And that’s just one of the many ways ERP is improving logistics. Let’s explore some ways in which ERP is making logistics future-ready.
Unified Data Storage
ERP integrates with different softwares like transport management systems (TMS), warehouse management systems (WMS), CRM, business intelligence (BI), and IoT devices to streamline data sync and exchange. It gathers important insights regarding finance, customers, transports, sales, and customer data, and provides one source of information for different stakeholders to view, evaluate, and use. This process decreases data silos and improves visibility and transparency into various operations for all parties involved.
An early stage technology company, Ship Angel, has launched the world’s first AI-powered modular system built for global supply chains. It brings together all critical information starting from intelligent booking and freight audit to purchase order orchestration, all under one platform with its own agentic AL layer.
Real Time Data Access
With customizable dashboards and automated data collection from sources such as IoT devices, decision-makers receive accurate, timely insights. They use the data to respond swiftly to changes in demand, supply chain disruptions, or operational issues. Logistics operators further use ERP to combine precise data from inventory levels, order statuses, shipment tracking, and other essential logistics information, instantly to all stakeholders. This real time data updates and access improve coordination, which reduce errors and prevent serious bottlenecks, caused by outdated and scattered information.
The global data visualization tools powers real time data access for several softwares including ERP. In fact the global data visualization tools in ERP is set to reach a market value of USD 17.96 billion by 2034 from USD 5.63 billion from 12.3%. The projected CAGR for the timeline is supposed to be 12.3%.
Workflow Automation
Within the warehouse, robotic process automation (RPS) automates repetitive tasks like data entry, invoice processing, order generation, and more. Replacing these manual, paper-based processes ensures error-free and faster task completion. Additionally, machine learning and artificial intelligence enable predictive maintenance and demand forecasting, which automates inventory replenishments. Similarly, using embedded analytics and reporting tools, operators automate decision making across operations. Lastly, robots powered by AI/ML also automates order fulfilment processes, ensuring operational efficiency during labour shortage.
Cetec ERP has come up with version 4.29 and 4.20 of its web-native ERO system, which includes features like automated device history record (DHR) generation and password validation for workflow approvals.
Improved Inventory Control
The process of logistics starts way before the parcel hits the road. It starts from inventory, where the parcels are kept and tracked. ERP streamlines inventory control by unifying data from various inventories and sales channels into one platform. It provides complete visibility into inventory capacity and reduces instances of over or under restocking. ERP further forecasts demands by analyzing historical trends and automating reordering processes. Inventory managers also use IoT (RFID tags) integrated ERP to track and trace products in different parts of the warehouse. IoT integration also helps in tracking products in and out of the warehouse.
Notable Mention: Recent study shows around 90% of the supply chain leaders consider investing into an updated warehouse management system (WMS).
Cost Optimization
Using AI-powered ERP provides advanced route optimization which suggests the shortest routes. This optimizes the delivery time and fuel use, which ultimately saves money. Further, IoT powers ERP to offer real time data updates and inventory tracking, which prevents costly stockouts and even more costly overstocking. Routine administrative tasks automation such as invoicing, order processing, and billing reduces labor costs. Integrating fleet management technology enables prompt maintenance scheduling, which decreases expensive breakdowns and downtime. Operators also use AI to analyze large data sets in order to identify trends and loopholes in resource allocation that are draining money.
DHL was using 5 ERP systems and around 30 external applications to handle its financial functionalities. This much external integration led to different regional accounting hubs using different master data models, and different charts of accounts. So, implementing any changes in the strategy was a long process due to scattered financial data. Using Oracle Fusion Cloud ERP, DHL Supply Chain is streamlining its financial processes across regional accounting hubs. It helped them eliminate 70% of the supporting financial applications and ensured more consistent service and performance by the team.
In Conclusion
End of the day, every customer facing industry strives for improving their customer experience with their service. The effort includes everything from integrating upcoming and modern technologies to parting ways with strategies and technologies that are no longer serving. Logistics is no exception. In the chaos of vehicles, tracking, and ticking deadlines, ERP gets the job done quietly but brilliantly. It’s like that backstage manager that handles all the work to make the mainstage performance hassle free!
With more upcoming innovations happening in technologies like AI/ML, IoT, cloud services, and robotic automations, it is already foreseen that the ERP in logistics industry will make it more efficient, customer centric, and future ready. It’s just a matter of time until we see how!
