ERP System for a Transport Company
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Published: Mon, 5 Dec 2016
Today’s Transport Industry scenario in India
This sector includes industries providing transportation of passengers and cargo, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation. Establishments in these industries use transportation equipment or transportation related facilities as a productive asset. The type of equipment depends on the mode of transportation. The modes of transportation are air, rail, water, road, and pipeline. With the changing economic scenario, factors such as globalization of markets, international economic integration, and removal of barriers to business and trade and increased competition have enhanced the need of transportation. It is one of the most important infrastructure requirements which is essential for the expansion of opportunities and plays an important role in making or breaking the competitive positioning.
Transport volumes in India remain much less than those in the developed countries. India has still to go a long way in strengthening its transportation network. The countries transportation network suffers from several inadequacies and, in particular it has little resilience to deal with unforeseen demands. Transportation, like all industries is largely influenced by information and communication technologies with the focus being on knowledge of customer needs and value added services. Surface transport is provided by the Road and the Indian Railways primarily for carrying low value bulk commodity, mostly for the government sector. Cargo Road Transport is entirely in the hands of the private sector. In India road transportation is preferred for cargo movement, where flexibility of routing assumes importance. It facilitates door-to-door delivery, overcoming unnecessary delays which normally take place in the other modes of transportation.
How will ERP help in transport industry?
The transportation industry today has to be on the move, constantly, in more ways than one. It has to deal with the increasing demands of customers and suppliers, while simultaneously trying to optimise the entire business operation at minimum cost. To keep pace with changing business paradigms, transporters need more than ever to use information technology, not merely as an enabler of operations but as a strategic driver and critical business tool. Seeing segment wise:
Air Freight companies are facing a bumpy ride. Jet fuel prices have reached historic highs, leading to a slow down in air cargo market growth. New air cargo screen requirements have been mandated. Customers are shifting business to ground and ocean transport to reduce shipping costs.
Airlines are faced with a significant array of challenges – many driven by historically high fuel prices. Profitability is suffering, increasing pressure to reduce costs.
Airports and Ground Handling Companies
Checking-in passengers. Displaying flight information. Handling baggage. Tracking cargo. Matching aircrafts and gates. Providing security. Controlling air traffic. Maintaining runways. Airport operators manage an incredible amount of information to keep air traffic moving smoothly.
From flight planning to revitalize IT infrastructure, ERP can make a world of difference for airlines, airports and related organizations. ERP helps understanding the clients’ critical most business issues.
From providing information about your cruise line to making reservations to offering on-board information services, IT systems can help provide a superior customer experience. You get solid solutions that make a tangible impact on your business.
Your customers are depending on you to get their package there-on-time, every-time. You need information systems that are just as reliable. In addition, your information systems must be flexible enough to respond to changing business conditions while remaining cost-effective.
Freight & Logistics
ERP can help you draw upon a global network of infrastructure, applications and outsourcing services to bring your organization the solutions you need to succeed.
Hub, Terminal & Port Operations
You have a lot of information to deal with. Connecting all parties involved in the flow of goods through a port requires the integration and coordination of a massive amount of information. ERP services are designed ensure that your IT systems provide you with the flexibility you need, while ensuring that your systems are reliable, secure and cost-effective.
Ocean Freight & Maritime
Many ocean shipping companies are running aging legacy IT systems that are expensive to operate; do not meet the standards of reliability required in today’s competitive environment.
Moving freight by rail is an increasing popular option as the cost of air cargo and trucking continues to increase. However, fuel costs for freight rail operators continue to grow as a percentage of operating costs.
Third Party Logistics Providers
Because you are part of multiple supply chains, your IT systems must be able to handle a wide variety of information needs and formats
Assembling and delivering the dream tour requires you to integrate information from a wide variety of sources. With 9,000 experienced professionals serving the transportation industry,
Your job is to use information to create a hassle-free travel experience for your clients. With 9,000 experienced professionals serving the transportation industry, EDS is unmatched when it comes to understanding and addressing your critical business and technology issues. You get solid solutions that make a tangible impact on your business.
Matching travellers with travel service providers – travel distribution companies are the match-makers to the travel industry. Your success depends on your ability to manage constantly changing information about the availability of airline seats, hotel rooms, and rental car availability as well as up-to-date pricing.
Your job is to keep move freight. Your clients rely on you to get the load there on time. In order to do your job, you need to address a wide variety of challenges
Fleet management. Customer reservations. Back-office accounting. Human resources. These systems, and more, require a significant investment in IT.
Warehousing & Contract Logistics
Warehouse management systems. Automated material handling. Bar coding. Automated data collection. RFID systems. Maintenance management systems. You handle a lot of goods to provide warehousing services to your clients – but you also handle a lot of information.
Desired function of ERP for Transport Industry
The s/w should have features required for booking orders, maintaining a record of that and other booking related functions.
Customer Relationship Management
Customer relationship management is a must for any business in today’s world. There must be features for effective customer relationship management. Customer complains etc must be handled effectively.
Network Compatibility with Centrally Stored Database
A very basic feature, though, in an ERP is networking compatibility across several departments with a database that is centrally stored and can be accessed easily.
Vehicle Centric Structure for Focused Fleet Management
Most of the features of the s/w should focus on the fleet management and should be customized with respect to it. Like the CRM, the Booking etc modules must focus on the fleet management functions.
Vehicle Record – Basic Information
All vehicles possessed by the company must be recorded in the database. Their model, registration number and other relevant details must be entered in the database.
Vehicle Details (e.g. Purchase, Insurance, Disposal, etc.)
The details of each vehicle such as their purchase date, their insurance details, their disposal details etc. must be maintained in a database which should be accessible by various departments. Also there must be timely updated. This will help in getting regular reminders for renewals of insurance etc.
There must be features enabling the maintenance of a database for information relating to tyres as it is a considerable cost for a transportation company. Features which enable reminders about timely changing of the tyres should be there. Features for recording resale transactions of the tyres their performance, their average life etc should be there.
Logistics Relationship management
In business relating transports it is important to manage your suppliers and your other logistics partners. Therefore there must be features to manage this process efficiently in an ERP for transport management.
RTO management, Insurance of moving assets
RTO management and insurance management features will help efficiently manage the RTO and Insurance norms of the vehicles. The deadlines for renewals etc. could be met in time. Also it will help maintain records for the related details.
Fuelling logging and management
Fuel is a big cost in a transportation company. Thus management becomes even more important. There should be records for average fuel consumption of each vehicle, the ideal fuel consumption, the monthly fuel cost etc.
On-Screen Fuel Economy, and Expense Graphs
Features that help to study and monitor fuel economy like some graphs, charts etc should be there. Different monitoring which help in this process should be there.
Basic feature of billing and invoicing is a must. The only thing is that it should be customized for a transportation company.
Inventory Tracking and Management
Monitoring of current inventory, reminders to replenish the inventory, including the inventory of tyres should be available. Basic features of inventory management should be available.
Inter Branch Communication
For a company which is having more than one branch an inter branch communication system will be needed.
Human Resource Management
Human resource management is an essentially needed feature in any company which is having a workforce. Driver management system should be included in this. Features for maintaining a record of the personnel driving history (such as their verification details, their license numbers etc.) should be there.
Simple data transfer features will be required. All types of files(text, video and sound) could be transferred across systems in the company.
Management information system for helping management at all levels in the organization will be needed. Generation of reports is a important feature needed.
Main features of ERP System of Transport industry
Fleet Operation Management
Operation module in transportation ERP should provide a collaborative environment for performing day-to-day tasks. Operation Management module must cover Daily Vehicle Transactions and help to track the vehicle and availability. All vehicle information should be generated automatically including the positioning of vehicle, type of vehicle, whether empty or loaded, Freight Type, Customer information, vehicle Contract information, etc… The other functions under this module may be
- Operation Dispatch Entry
- Day Today Status
- Vehicle Fail Note
- Delivery Order Master
- Detention Entry
- Dispatch Entry for Container
Fueling Management Module
Average Fuel consumption from destination to destination for different kind and type of vehicles, the tolerance limit of fuel consumption from destination to destination should be captured.
If the variance of the actual consumption of any vehicle exceeds the tolerance defined, the system should automatically pop-ups alert and send intimation to the Accounts and/ Or any system user. Provision of adding All Petrol Pump (Gas Station) in between all destinations must be available in the system. The Fuelling management module should be linked to Dispatch, Billing and Accounts Module. It can have the following functions:
- Fuel Credit Transaction
- Fuel Bill Generation
- Fuel Bill Entry
- Fuel Payment Transaction
RTO Management Module
There should be a module that complies RTO regulation with the ability to capture mandate RTO expenses such as Counter Permit renewal, Counter permit Tax, Fitness Certificate, Home Tax, National Permit renewal, PUC, Permit Tax, etc.. It should generate forms like Agent Payment Form and Agent Expenses Form and also generate reports like
- RTO Expiry date wise Report
- RTO Exp. Detail Date wise Report
- RTO Owner and Registration wise Report
Driver Management Module
Driver Information should be captured in this module. This module should be linked to the Human Resource Management. This section should maintain driver information including the Insurance of Drivers, Payment information and performance of drivers. It should contain:
- Driver Bio Data Master
- Driver Change Document
- Black List Entry
Tyre Inventory Management
Inventory of Tyre is maintained through in this section. Functions may be like:
- Purchase Enquiry of Tyre
- Tyre Issue Form
- Sales Tyre Form
- Purchase Tyre Received
- Purchase – Order of Tyre
Insurance Management Module
Insurance information for all moving assets should be captured in this section. This module must automatically trigger insurance expiry information from few months prior to the expiry until the insurance is renewed. It can have:
- Vehicle Insurance Form
- Insurance Payment
- Insurance Claims for Vehicle and goods Form
Freight Memo Management Module
Freight memo is used for regular transactions of external vehicle. Transporter Vehicle Information is captured here. It contains forms like:
- Freight Memo Form
- Freight Memo Bill Entry Form
- Freight Memo Payment Entry Form
Inventory module will provide a powerful and flexible set of features to help manage and report inventory information. Inventory Management facilitates processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory control involves in identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status . It will contain details like:
- GRN for Purchase
- Out ward
- Purchase Return
Purchase Order Processing Management
Purchase module streamlines procurement of required Vehicle spare parts and other Non Inventory Materials. It automates the processes of identifying potential suppliers, Supplier Evaluation, Supplier Quote Evaluation, awarding purchase order to the supplier, and billing processes. Purchase module is tightly integrated with the inventory control and production planning modules. It will contain details like
- Purchase Order Processing
- Bill Entry
- Payment Entry
Billing Management Module
LR Details is captured in the billing module. LR information is automatically affected in Billing, thus avoiding data redundancy. Functions will involve:
- LR Entry
- L.R. Entry for Container
- To Pay Payment Form
- Payment Entries
- Payment Entry for Container
Human Resource Management
Human Resource module in ERP streamlines the management of human resources and human capitals. It comprises of 4 broad sections, mainly Training, Recruitment, Payroll and Attendance. HR module routinely maintains a complete employee database including contact information, salary details, attendance, performance evaluation and promotion of all employees. It involves functions and information like:
- Employee record
- Salary record
- Grade record
- Overtime Rule
- Loan Management
- Training Plan Schedule
Finance Resource Management
Finance Resource Management gathers financial data from various functional departments and generates valuable financial reports such as balance Sheet, Trial balance, General Ledgers, Quarterly Financial Reports, Account Statements, Gross Profit Analysis, Cost Centre wise Analysis, Branch wise Profit Analysis, profitability report, Asset and Depreciation Management, Tax Management, ABC Analysis and many more.
Finance management module has the capability of meeting all the accounting and financial needs of an organization. It is with this module that Financial Manager as well as other Managers within business can review the financial position of the company in real time and allows for better decision-making and strategic planning. It involves functions like:
- Sales Invoice
- Credit Note
- Payment Voucher
- Receipt Voucher
- Profitability Report
- Cost Center Wise Analysis Report
Other functions may be like:
- Representation of multi-modal traffics
- Automated management of empties and inventory
- Comprehensive depot splitting functions
- Geo coding and tour optimization
- Standardized claim management
- Exchange of digital delivery receipts
- Direct integration of on-board computers
- Track & Trace via web platform
- Fully comprehensive management of rates and contracts
- Contract-specific billing models
- Sub-contractor and intercompany billing
- Archiving within a document management software
Challenges to Transport Industry
Anticipate and meet the rapidly changing demands of the global transportation marketplace – challenges such as buying/selling price transparency, service commoditization, self-service channels and high distribution costs.
An industry under pressure
Across the globe, sustained cost pressures are forcing airlines to find ways to eliminate overhead and refocus their efforts on mission-critical activities. Airlines are grappling with aging technology platforms that can contribute to system outages, passenger delays and general inconveniences.
Hotels and gaming companies are dealing with consolidation issues resulting from mergers and acquisitions. To survive, these companies must divest all but the most strategically owned properties and align brands to differentiated customer experiences.
For logistics and freight companies, having end-to-end visibility into the supply chain is essential. And for public transport companies, an increasing demand for seamless, multimodal, flexible passenger travel is creating opportunities for integration and shared systems.
Benefits of using ERP for Transport Industry
ERP systems are great to help your company streamline your processes. In order to have a successful implementation of your ERP system, you need to make sure you have your information in line to help make the process swift. It doesn’t matter whether or not your company deals with paper or plastics, ERP provides your company with the right system and performance that you need. ERP can help your company reduce operating cost and it is a benefit when running company analytics. It improves the coordination of your company’s process into one streamlined process where everything can be accessed through one enterprise wide information network.
Additionally operating costs are reduced by being able to control inventory costs, lower production and marketing costs, and help lower help desk support. ERP systems can also benefit the company by facilitating day-to-day management activities. It encourages the establishment of backbone data warehouses and allows employees to access the information in real time. This helps with research, decision making, and managerial control. It tracks actual cost of the daily activities and can perform activity based costing functions.
Strategic planning is also benefited in that the ERP system is designed to support resource planning in the strategic planning process. This is traditionally the weakest portion of the process and it is a complex routine. But the reports and functions that ERP provides can help employees work through the strategic planning sessions and develop a comprehensive one that will aid in the company’s processes.
ERP programs are being developed and updated all the time. With so many different types in the market, companies should make sure they do due diligence and try out different packages before choosing one to use. Some of the programs even offer mobile capabilities so that you can always have a finger on the pulse of your business activities from your pda.
With real time capabilities and the ability to be able to see what is going on with your company as it happens, ERP systems are handy when you deal with high volume. With an ERP system, your company will never have inventory shortages or wasted time spent transferring files. You can test out an ERP system before buying it and see how it will work with your business.
- Reducing IT expenditures
- Increasing online travel package sales
- Streamlining application portfolios to increase savings and efficiencies
- Using mobile solutions to create savings by dispatching personnel more efficiently
- Optimize shipments, assign carriers to shipments, and tender shipments to assigned carriers
- Consolidate orders and optimize shipments from a centralized location or distributed business units
- Select carriers, calculate freight costs, settle shipment costs, and print documents
- Use denied-party and embargo lists for international shipping
ERP for Transport can provide solution for all your vehicle operations, trucks, cars or any other commercial vehicles. ERP for Transport industry ensures we can provide a unique fleet management ERP solution for you. ERP for Transport will help you prevent costly, unexpected break-fix scenarios and downtime due to neglected fleet vehicles and equipment. And it serves as a ready resource for fleet maintenance history, fuel usage, and driver details.
ERP Products for Transport Industry
EDS helps both the Consumer Travel Industries and Freight & Logistics Industries stay ahead of the curve. EDS helps you transform rigid or underperforming legacy systems into agile, integrated environments that give you an added advantage by boosting productivity, addressing security requirements and controlling costs.
You can consolidate orders and optimize shipments across your company to maximize return on transportation costs. You can share information and combine orders directly with carriers and forwarders over the Internet, so you can integrate business partners into your company’s processes and maintain control of plans.
eresource ERP for Fleet Management serves as a ready resource for fleet maintenance history, fuel usage, and driver details also you can easy manage areas like insurance, asset management, tire management, inventory management, LR management as well as all expenses associated with operating your fleet of motor vehicles and other mechanical assets.
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