Everything You Need to Know About Distribution ERP

In the fast-paced and complex distribution industry, using the right tools is essential for delivering products on time and remaining competitive in an ever-changing marketplace. That’s where enterprise resource planning (ERP) software comes in. With the global wholesale distribution ERP market projected to reach $100.8 billion by 2026, it’s clear that these systems are a key component of many distribution operations worldwide.

Distribution ERP systems are about more than data management. They transform your entire distribution strategy and make operations more intelligent, connected, and responsive.

What are Distribution ERP Systems?

Enterprise Resource Planning (ERP) systems originated in the manufacturing industry to improve material requirements planning. They have expanded far beyond their manufacturing origins and are now used widely across multiple industries, including wholesale distribution. Traditionally, ERPs have severed as the backbone of company operations. Distribution ERP software, or ERPs designed for distribution, optimize processes and address challenges unique to distribution operations.

They connect every aspect of a distribution company’s operations, including:

• Inventory Management
• Order Processing
• Customer Relationship Management (CRM)
• Logistics

Distribution ERP systems also provide real-time data and analytics, which allows business leaders to make better, faster decisions and grow their business.

Top 5 Benefits of ERP Software for Distributors

ERP for distribution provides many benefits for companies. Each company is different, and that means every ERP instance is, too. Each application is customized to fit the workflows and needs of the business, which means they may not all function the same way. Generally speaking, however, ERPs provide the same main benefits to distribution companies.

Better Visibility

Many distributors struggle with organizational visibility, which isn’t surprising given the presence of remote teams and the number of products your company moves every day. Different departments may be operating off different data, generating confusion. An ERP system allows you to oversee every step of the distribution process. It serves as a single source of truth for all operational and financial data, including real-time data updates. This allows you to make business businesses decisions in real-time and respond faster to potential threats or opportunities.

Better Customer Satisfaction

An ERP system improves customer communication and provides a better customer experience. It allows you to easily send fulfillment notifications and delivery updates and better meet your customers’ rising expectations. Successful distributors understand that the customer experience is at the heart of their business and that it is important to meet customers’ ever-growing demands.

ERPs can improve your customer relationships by:

• Improving order fulfillment
• Improving customer visibility into available inventory quantities and costs
• Improving scheduling and tracking

Streamline Operations

ERPs increase automation, including automating manual tasks and reducing manual data entry. This streamlines operations and eliminates redundancies, which boosts efficiency and lowers costs. A good software solution lowers costs while improving performance and profitability.

Better Warehouse and Inventory Management

Both inventory management and warehouse management are at the heart of distribution operations. They’re also key features of distribution ERP systems offering industrial distribution businesses complete visibility into their stock across the entire organization. With a software solution, users can easily track open orders, check product availability at different branches, monitor pending purchase orders, review item transaction history, oversee quantities in external fabrication, and analyze other key inventory metrics.

Most ERP solutions offer warehouse management functionality, including enabling on-demand inventory movements, optimizing order picking processes, and directing received inventory to designated bin locations. These features streamline warehouse and inventory management workflows, allowing businesses to reduce excess inventory, improve customer service, and improve product traceability.

Increase Flexibility and Scalability

Streamlining operations and improving workflows increase scalability. The right ERP will grow with your business and better position you for future growth. It gives you the flexibility to rapidly expand or shift operations based on your needs. You’ll be able to quickly adapt to evolving market conditions, including expanding to new markets, changing supply chain strategies, and handling regulatory changes.

In today’s rapidly changing distribution landscape, investing in a robust distribution ERP system is more than just a technological upgrade—it provides a strategic advantage. It equips businesses to manage current complexities effectively while anticipating and shaping the market trends of the future.

Better Decision Making

ERPs also improve decision making by allowing business leaders to leverage comprehensive, real-time data from across their entire organization. Predictive analytics and inventory forecasting tools help you proactively react to market shifts and other potential challenges. ERPs provide insights into sales patterns, customer behavior, and more, which allows you to better forecast future demand.

Key Features of Distribution ERP

Like with all software, different ERP platforms offer slightly different functionality. For distribution ERP, certain features are critical for streamlining distribution operations, improving inventory and warehouse management, and accelerating order fulfillment and delivery. It’s important for you to choose the right software solution that meets your business needs and can fuel growth.

Here are the top nine features that are must-haves in top-notch distribution software solutions:

Inventory Management

 

Advanced inventory management features are critical for robust distribution ERP. This inventory functionality should include real-time inventory tracking, automated reordering, and demand forecasting to minimize stockouts and overstocking.

Order Processing and Fulfillment

 

Any business management software for distribution must include features that streamline the entire order-to-cash process, which improves accuracy and increases efficiency across your business. From order capture and validation to picking, shipping, and invoicing, Sage ERP handles it all.

Customer Relationship Management (CRM)

 

Sage’s CRM software improves management of customer interactions, including tracking sales, recording past interactions, and forecasting future customer demands. It helps you provide personalized service that improves customer satisfaction and customer loyalty.

Supply Chain Management

 

Supply chain management is critical for any distribution operation. You need a robust solution that provides a 360-degree view of your entire supply chain. This allows you to optimize logistics, improve supplier relationships, and reduce costs while accelerating product delivery.

Financial Management

 

It should also include robust financial tools that provide real-time financial tracking, budgeting, and financial reporting. Easy-to-use dashboards and reports make it easy to visualize data and spot trends.

Analytics and Reporting

 

Data is useless without the ability to drill down and analyze it. Sage software includes powerful analytics and reporting tools that help you turn data into insights, allowing you to make better decisions and stay ahead of market changes and trends.

Integration Capabilities

 

A good ERP solution should also include seamless integration capabilities that allow it to interact with other software platforms like your website. This ensures data consistency across your core business systems and improves workflow efficiency.

Mobility and Usability

 

A distribution company with a mobile workforce needs a mobile ERP, too. You need to be able to track products and shipments en route while providing consistent, standardized data to employees in multiple locations. Our cloud-based distribution ERP provides exactly this type of flexible, anytime, anywhere access as long as employees have their credentials and an internet connection.

Customization and Flexibility

 

Unlike Microsoft Word, ERPs are not out-of-the-box solutions. They require heavy customization and specialized functionality to meet the needs of each business. You should evaluate any distribution software solution you’re considering to ensure that it is flexible enough to fit your evolving business.

Revolutionize Efficiency and Growth

Distribution ERP systems are transformative tools that automate core processes including inventory management, order processing, and logistics. They reduce manual tasks and improve data accuracy. This leads to faster turnaround times, which means your company can handle higher sales volumes without raising overhead costs.

They also improve compliance and risk management with features including built-in audit trails, quality controls, and reporting tools that help you remain compliant and better manage risks.

What We Can Do for You

At CertiPro, our expert team specializes in distribution ERP software solutions. We’re well versed in the types of challenges distribution companies often face and offer our own priority tools for automated cycle counting and B2B eCommerce. Contact us today to see what we can do for your business.

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