Re-inventing and Re-modelling Logistics and SCM

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Re - inventing & Re-modelling Logistics & SCM
By
Zubin Poonawalla
Conceiveddecades ago as the way forward for manufacturers who
sought to harness technology to better plan business operations, ERP
has been used to patch up disparate systems and processes to provide
an integrated information flow to an organization. With technological
advances and the explosive growth of companies like Amazon –
online to offline, e-commerce, real time delivery, and drones – the
logistics and supply chain industry of the new era needs entirely new
levels of speed, accuracy, efficiency and cohesion from its ERP
systems and other solutions that they use for driving business.
The traditional model of patchwork for disparate systems, along with
the legacy roots in manufacturing, leaves these logistics and supply
chain companies with a software that does not cover their operations
comprehensively, creating gaps in vital functions. While a traditional
ERP has tried to meet warehousing needs, integrating stacking and
racking; companies are now demanding much higher levels of
precision, real-time tracking and response systems, to manage the
highly dynamic requirements of the modern supply chain business.
The nature of modern business, thus, makes it imperative for ERP
vendors, and businesses as well, to think of ERP in a totally new
context. There needs to be a fundamental shift in the way in which
ERP usage is viewed, from a system of records to a system of insights
and action. This system must gel with the usage patterns of new

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generation application users, who are tunedhighly into social media.
This system must, at the same time, provide high-level automation of
routine functions, enabling all levels of user hierarchy manage by
exception and ensuring quality time for users, to focus on strategy
and innovations.
Logistics and technological advances such as Near-Field
Communication (NFC), GPS, QR Codes, RFID tags and sensors have
to be utilised and integrated with the ERP applications, in order to
automate inventory transactions and maximise warehouse space and
inventory. Store transactions getting completed in a jiffy, through a
couple of scans of QR Codes have been in the mainstream for some
time now. GPS enabled tracking of consignments and the ability to
visualize real-time status through Google Maps, has brought
tremendous benefits to many businesses, already. By using trend
analysis through integrated data analytics, one can efficiently arrange
warehouse space, ensuring high-traffic items are placed near loading
doors, for quick movement. Additionally, in order to forecast demand
and plan inventory effectively, one can leverage multi-agent based
technology for real-time scheduling, Route Planning and Load
Optimization and Inventory Forecasting. This will in turn increase
the processing capacity, drastically, ensuring faster and smarter
decisions. Also, Big data analytics using the terra bytes of data made
available through Internet of Things is the other huge area both
supply chain companies and the ERP vendors must focus together on.
Mobility solutions are now key for any organization. Smartphones are
no longer news, they are a necessity. The smartphone penetration is
increasing by leaps and bounds, globally. In a business context, there

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is always a need to be connectedto the latest information, in order to
make the best decisions. Being able to manage operations via smart
devices gives flexibility and places critical information within reach,
allowing thorough evaluations during any situation. Overseeing and
managing the supply chain by walking around is no longer
impossible, it is now mandatory for business success. Any ERP that
lets a usercarry out his or her day-to-day work through a mobile
device – take customer orders, track statuses of an invoice, authorize
a document, apply for leave – is bound to have a legion of fans in an
organization.
Companies need to gain a competitive edge in today’s market.
Ensuring that processes run at optimum levels is not enough. An
organization must be able to make accurate, instantaneous changes
and decisions. Real-time tracking of warehouse utilisation, supply
chain movements and inventory status is now necessary for
warehouse workers and top management to make decisions.
All this being said, user-friendliness is still key to determining
whether an ERP is properly utilised. If the ordinary logistics worker is
unwilling or unable to use the ERP, the system will lack necessary
critical information. It is just as important to have an intuitive
interface that can be used by everyone from upper management to
workers, on the warehouse floor. Building on the new need for
analytics, ERP software shouldalso be context-aware. As businesses
grow and shrink with the market, their internal functions have to
adjust, accordingly. Having this foresight can make the difference
between a successful or failed implementation.

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As technology advances, and newer business models appear on the
horizon, ERP solutions need to not only catch up and stay in tune
with the technology trends, but also be agile enough to mould
themselves into the ever evolving business models, to fit the needs of
the various industries they serve. No longer can traditional ERP
platforms shoehorn otherbusiness segments into legacy systems.
ERP must be redesigned so that it can break away from its legacy
manufacturing roots and create a platform to deliver and serve the
needs of many.