Sage Software and Wholesale Distribution

Are You Interested in Knowing How to Increase Profits for Your Business?

 

Wholesale distribution businesses face unique challenges. They also offer great benefits to their customers. To remain competitive in a changing landscape, it’s important to address the challenges that face your business before they negatively impact your customers or your bottom line.

 

As certified software consultants, we’re here to help. We understand wholesale distribution challenges and provide solutions to help businesses just like yours.  

Can You Deliver?

 

Wholesalers face many of the same challenges as businesses in other sectors, but they also face unique challenges due to the nature of their business. It’s the job of any wholesale distribution business to continue delivering products on time despite these challenges or increased risks.

 

The top nine wholesale distribution challenges include:

 

1. Increasing Competition from Manufacturers – Wholesale distribution companies have long filled the gap between manufacturers and the companies who sell their products. Distributors handled the logistics―and assumed the risk―of buying products in bulk directly from manufacturers or suppliers and distributing them to retailers or other establishments. More efficient logistics systems have allowed some manufacturers to get in on the distribution game, too. Consolidation in certain manufacturing sectors has also led to large manufacturers with national distribution systems. This creates new competition for wholesale distribution businesses.     

 

2. Supply Chain Challenges – Wholesale distributors serve a critical role in the supply chain. Challenges anywhere in the supply chain can have a massive impact on their business. If manufacturers or suppliers are unable to provide their usual products or quantities, wholesale distribution companies may struggle to fill their customers’ orders.  

 

3. Increasing Customer Demands – Rising customer demands are increasing the cost of doing business in many different sectors, and wholesale distributors are no exception. Chiefly, distributors are impacted by two types of customer demands: demands for faster shipping and demands for increased product traceability. As big retailers like Target and Walmart expand their product offerings, they’re also requiring faster delivery deadlines. Some retailers may impose penalties on distributors who don’t meet them. This puts additional pressure on wholesale distributors, who may have to invest in new technology or additional employee training. They may also have to hire more employees or purchase or lease additional equipment or warehouse space. Increased product traceability requirements are a concern, too. Driven by consumer demands or new regulations, many retailers have increased product traceability requirements. This impacts companies along the entire supply chain, including distributors. Wholesale distributors may need to invest in new software with additional product traceability capabilities to meet these new traceability requirements.

 

4. Changing Fuel and Transportation Costs – Wholesale distributors’ entire business model depends on transportation and product shipping logistics. This makes distributors uniquely vulnerable to volatility in fuel prices or other transportation costs. Increasing prices for fuel or transportation will have an impact on a wholesale distributor’s bottom line, and these challenges could even make a company less competitive unless handled correctly.    

 

5. Product Price Volatility – Wholesale distributors are vulnerable to price volatility in the bulk pricing for products. If the cost of raw materials increases, manufacturers will raise their prices as well. This creates challenges for distributors who must protect their margins. As an example, a distributor might be faced with paying higher bulk pricing but be locked into selling these same products at a reduced rate to their customers.    

 

6. Increasing Worker Demands – Increasing worker demands are another potential area of concern. Storing, handling, and transporting products comes with significant safety risks. This requires companies to maintain tight safety standards. Workers may also demand increased pay or additional benefits, or new laws may mandate higher pay. Low-wage workers in America have become increasingly vocal about demands for higher salaries. As some large companies like Amazon roll out a $15 minimum wage, other businesses may feel pressured to follow suit. Some companies may even struggle to attract workers if they aren’t willing to offer higher pay.   

 

7. Centralized Buying by Large Customers – To save money, some national companies now handle orders through company headquarters rather than having stores or regions buy products. This gives them more purchasing power. This trend toward centralized buying favors large distributors who can handle the large volumes and offer lower prices. 

 

8. Supplier and Retailer Consolidation – Increasing consolidation among manufacturers has lowered wholesalers’ buying power. In addition, regional distributors may be easy acquisition targets due to their struggle to compete with national distributors. Retailer consolidation provides pressure from the other side as large chains gain additional leverage to negotiate favorable prices. 

 

9. Regulatory Changes – Regulatory changes around employee wages, product traceability, and break requirements for truck drivers can all impact the bottom line and provide additional complexities for a wholesaler.

 

That’s a lot for any business to handle. It would be easy for something to slip through the cracks, particularly if wholesale distributors are relying on outdated or legacy software to manage their business. Updating legacy software or purchasing new modern software can help prevent issues from slipping through the cracks. It can also help businesses catch and fix minor slips before they become major problems.

 

Using modern, mobile technology can enhance customer service and help wholesalers distribute products on time.

Steer Your Distribution Business Toward a More Successful Destination 

 

Sage ERP software is a perfect solution for wholesale distributors looking to handle business challenges and remain competitive in a rapidly advancing industry. This advanced software allows you to take control of your business. From inventory management to budgeting and forecasting, Sage has you covered. 

 

Enterprise resource planning (ERP) streamlines operations and connects departments across your business.

 

Sage ERP Benefits Include:

 

• Increased Data Transparency & Visibility Across Your Business
• Better Inventory Management
• Empowered Employees
• Better Forecasts
• Increased Compliance
• Increased Profit Margins

 

Sage offers multiple different types of ERP software to meet the needs of different kinds of businesses, including different-sized businesses or businesses across different industries.

Trustworthy, Personalized, Connected Business Management Software

 

Sage software is built for security and increased compliance. Each Sage installation is configured to meet your business needs. Sage implementation partners will help identify your company’s needs and customize your ERP software to eliminate current pain points and bottlenecks that hinder growth.

 

While each type of software Sage offers provides unique functionality, there are some similarities that unite the Sage software family. Sage is one of the oldest providers of ERP software in the business. This means that they’ve seen it all. They’ve helped millions of customers around the world solve the unique challenges their businesses face.

 

Each Sage ERP installation is designed for security, compliance, and customizations that give you complete control over your data and your business.

 

Move Beyond Traditional Accounting Software

 

Sage takes you beyond traditional accounting software. It offers you all the functionality of traditional accounting software, including Accounts Payable, Accounts Receivable & Billing, Budgeting & Forecasting, General Ledgers, and more.

 

Let’s look at the different versions of Sage and the functionality they offer to wholesale distributors.

 

The Features of Sage 100

 

First, let’s look at Sage 100, also known as Sage 100 and MAS 90. 

 

Sage 100 is a type of business management software that offers a broad range of functionality. It’s designed to fit the needs of small wholesale distributors. A fully equipped ERP solution, Sage 100 can manage both internal and external processes.

 

Some of the benefits of Sage 100 include:

 

• Enhanced Visibility – With Sage 100, your company manages all business processes in a single space. This increases visibility across your entire company and reduces redundant data entry and the headache of having to manage multiple different kinds of business management software. All departments will have access to the same real-time data.

• Reduced Risk – Better visibility allows you to make better decisions for your business. It allows you to spot potential risks more quickly and to take advantage of emerging opportunities.

 

• Increased Productivity – ERPs help streamline your business operations. They create unified workflows across your business and connect multiple departments so that everyone can work in unison without a flurry of emails or phone calls. Sage 100 is adaptable. It will grow and change with the needs of your business so that you always have the capabilities and support you need. 

Visual Integrator and Custom Office with Sage 100

 

Sage 100 Customization Custom Office and Visual Integrator Custom scripting allows users to automate procedures and easily import data between platforms. It’s another way that Sage makes life easy for your business―and your employees―by allowing your ERP to interact with other platforms like Microsoft Office. You’ll be able to customize your User Interface (UI) within Sage, including adding fields to make sure you’re capturing the data you need.

 

Sage Contact

 

In 2018, Sage introduced Sage Contact, an Outlook Ad-in that allows you to view customer information stored in Sage 100 in Office 365. This includes information like recent invoices and payments, contact information, and more. Information from Sage 100 will be accessible in Microsoft Outlook using any device. This improves the customer experience, reduces friction in email customer interactions, and increases the accuracy of communications.  

Sage Data and Analytics

 

Sage Data and Analytics (SD&A) is a business intelligence (BI) and data management platform. It’s a toolkit for Sage 100 with artificial intelligence and machine capabilities. It provides live sales dashboards, graphical cashflow analysis, and monetary reports including detailed P&L reports. And that’s just the out-of-the-box functionality. Imagine how much more it can do once you start creating custom dashboards and reports.

 

SD&A is a creative multi-stream BI solution that extends the power and functionality of Sage 100 to deliver the business intelligence that your company needs.

 

Embracing Sage Partner Cloud

 

Sage recently made its powerful Sage 100 and Sage 300 platforms even better with the Sage Partner Cloud. With the Sage Partner Cloud, your business will be able to enjoy the standard benefits of your Sage ERP system while embracing the flexibility of the cloud. 

 

Sage Partner Cloud will allow your employees to get up-to-the-minute accurate data from your ERP while enjoying the dependability that countless CEOs have come to trust.

 

Benefits of Sage Partner Cloud include:

 

• Scalable – Deploying your ERP from the cloud makes an already-flexible solution even better. With Sage Partner Cloud, it’s even easier to scale your ERP to meet the needs of your business.
• Reduced Downtime – With the cloud, your ERP is always available from any device. This increases ERP availability with minimal downtime as long as your employees have a working internet connection. 
• Reduced IT Costs – Sage Partner Cloud includes automatic backups to ensure your data is always protected. Your IT staff won’t have to devote time or resources to supporting your ERP when it’s in the cloud.
• Automatic Updates – One of the big benefits of Sage Partner Cloud is automatic updates. With a local installation, updates can be a time-consuming manual process. The cloud replaces that with a simple, automated solution. Updates will be automatic with no disruption to your work.
• Prevent Workplace Disruptions – The cloud is a perfect solution for an increasingly remote and mobile workforce. Like we saw in 2020, if your office suddenly has to close, already being on the cloud will prevent what could otherwise be major disruptions to your business. 

Sage 300

 

Sage 300, formerly called ACCPAC, is an all-in-one business management software for small-to-medium sized businesses. It’s used for accounting and other business processes.

 

Handle Several Entities Effortlessly

 

Sage 300 makes it easy to manage multiple entities, including multiple locations, languages, or currencies. This sets it apart from many other types of ERP software, including Sage 100cloud. One Sage 300 instance can manage multiple entities. One user manages 858 different entities within a single instance of Sage 300.

 

Financials and Budgeting Made Simple

 

Sage 300 makes financials and budgeting easy. Managing multiple entities can be a nightmare when it comes to consolidating financials. But not with Sage 300. Sage’s intuitive, user-friendly interface delivers actionable financial and operational data in easy-to-understand dashboards and reports.

 

The Key Attributes 

 

Sage 300 offers:  

 

• Best-in-class financial tools, including Withhold Taxes on AR and AP transactions, General Ledger, General Ledger consolidation, Instant Bank Reconciliations, and More
• Sales order management tools that manage transactions and automate purchase order procedures
• Inventory tools that help streamline and manage inventory
• Integrated payment tools that process credit and debit transactions directly into Sage 300

 

Sage X3: Moving Beyond ERP

 

Sage X3 is a business management software solution designed for large and enterprise organizations. It allows businesses to take control of operations from their supply chain to sales. It’s perfect for businesses looking for greater insight and flexibility.  

 

Powerful Capabilities

 

Sage X3 offers powerful business management capabilities. It’s perfect for wholesale distribution companies working in the areas of retail trade, transportation and logistics, discrete manufacturing, and wholesale trade.

 

Take advantage of Sage X3’s powerful:

 

• Supply Chain Management – Sage X3 makes real-time management of purchasing, inventory management, sales management, and customer service easy. This helps your keep up with demand and reduce waste or inefficiencies.

 

• Financial Management – Sage X3 helps you control your bottom line, including budgets and accounting, fixed assets, and financial reporting. It gives you the benefit of real-time global visibility while also ensuring compliance with local regulations.  

ERP for Wholesale Distribution 

 

Many distributors are investing in cloud technology to reduce risk and increase efficiency. Sage X3 offers powerful management capabilities for distribution, including:

 

• Supply Chain – Sage X3 provides real-time visibility across their global supply chain. This improves visibility and transparency for all stakeholders, including customers.

 

• Warehouse Inventory – A robust ERP makes it possible for distributors to understand and manage all aspects of inventory and inventory storage, including warehouse operations, product profitability, order to cash, and more. This makes it easier and more efficient to stock, pick, and fulfill orders.

 

• Operations – Modern business management software helps distributors optimize purchasing decisions, protect their margins, and manage supplier quality and performance.

 

• Mobility – For a distributor with a mobile workforce, having business management software that goes to your employees creates an empowered, informed workforce. It’s the best way to manage stocks, past purchases, quotes, and ensure that orders are fulfilled on time.

 

• Sales & Marketing – A comprehensive ERP solution like Sage X3 helps distributors easily manage sales and promotions while tracking sales targets and commissions. 

Accelerated Growth is Within Reach

 

With the right ERP solution at your fingertips, accelerated growth is in reach for your wholesale distribution business. The right tools eliminate pain points and reduce bottlenecks. They remove obstacles to growth.

 

Sage X3 is a powerful business management solution. It’s ideal for businesses in the food & beverage, process manufacturing, discrete manufacturing, chemicals, and services industries. It’s flexibility makes it perfect for distributors who work with manufacturers or suppliers in any of these sectors, since Sage X3 is already designed to meet their specific needs. Such as specific mechanisms for tracking the expiration date for food and beverage products, or mechanisms noting exactly how volatile chemicals must be transported and stored.

 

The Improvements

 

When you go with Sage, you’re choosing a product with a rich ecosystem of implementation partners and Independent Software Vendors (ISVs) with custom enhancements that extend the functionality of your Sage ERP application.

 

Your Sage reseller or implementation partner will be with you every step of the way in customizing, implementing, and supporting your Sage application. Their in-house team will be in regular communication with you and your employees to answer any questions and provide ongoing support. These qualified developers will work with your employees to provide the customized design solutions your customers need.

 

ISVs can provide pre-build customizations that enhance Sage’s already powerful functionality.

 

E-Link

 

An ERP eCommerce integration is one example of an enhancement for Sage ERP. An ERP eCommerce integration is a type of middleware that sits between your website and your Sage installation.

E-Link is a two-way Sage Magento integration or Sage Adobe Commerce integration. It forms a two-way sync between Sage and Adobe Commerce, formerly known as Magento.

 

E-Link streamlines the purchasing process and reduces both manual data entry and data errors. Here’s an example of how it works. A returning customer logs into your website and places a new order. Their address information stored in Sage ERP will automatically populate in Magento/Adobe Commerce, reducing friction during the purchasing process. The new website order will automatically sync into Sage ERP for fast processing and order fulfillment.

 

With E-Link, you never have to worry about updating your online product catalogue because your website will update automatically when your product catalogue in Sage changes. In addition, E-Link makes it easy to create customer-specific pricing and inventory so that even your trickiest customers can place orders online.

 

E-Link handles the following data connection points:

 

• Products
• Pricing
• Inventory
• Customer Information
• Order History
• Transactions
• Payments
• Shipping & Tracking
• And More . . .

 

Native B2B/B2C Mobile App

 

We also offer a native B2B/B2C mobile app that integrates with your Magento/Adobe Commerce webstore. With our native apps, you update your product catalogue once, in Sage, and the product catalogue in both your website and your mobile app updates automatically.  

 

Customers will be able to place easy reorders using their phones. These apps save your time and money by reducing manpower and increasing automation while also providing a better customer experience.