ERP for distribution
Distributors face several operational challenges such as materials management, sales order management, financial reporting, production monitoring, supply chain optimization, and many more.
They must continue to strive to reduce margins and fulfil on time in an increasingly competitive market.
Enhance distribution: full cycle control
ERP software for wholesale distribution needs to encompass every aspect of their business, from receiving orders and procurement to comprehensive warehouse, stock and shipment management, to labelling, pricing and sales support.
Empower your ERP capabilities
If you are a distribution business, when specifying your ERP software for distribution, ensure these areas are on your wish-list.
- Can the ERP software for process manufacutring provide the ability to track import/export activities with automated batching to end user?
- How easy is it to set up mandatory fields for quality data input or to personalize certain fields in the ERP solution in line with how your business operates?
- Ability to control costs through the supply chain, with workflows and automation to set procurement processes and limits.
- Integrate demand planning based on your own data and external information (e.g. seasonal trends) to meet customer needs and keep inventory profitable
- Can the ERP software support automatic splitting of purchase orders?
- Ensure product quality control, complaints resolution and traceability processes are built into procurement and inventory processes.
- Seamless integration with warehouse operations, allows you to keep a clear view on process KPIs for inventory flowing. Can physical movements in the warehouse be instantly reflected in the ERP?
- If you deal with SSCC, do you want to manage this within your new ERP rather than use multiple apps?
- How will the ERP’s warehouse functionality help overcome issues of “out-of-stock” and provide a robust link with procurement and sales functions with automated warnings?
- Can the ERP allow users to offer stacked, conditional or retrospective discounts, customer favorites depending on commercial criteria?
- If you manage diverse company groups, or handle various responsibilities seek features that streamline customer hierarchies by organizing complex customer structures automatically.
- In the sales order process, how easy is it for your commercial team to check availability of products in order to ship the items? Look for an ERP that surfaces this information.
- For these products, how do you want the ERP to handle updates during the product life cycle? Look for an ERP that helps you manage, control, trace and structure data input across your product range
- Flexibility and controls in logistics overheads, the ability to set delivery type, margin and cost for each trade agreement.
- ERP that allows management of your logistics processes, including cross docking, drop shipping and transfers of goods. Plus, if you deal with Incoterms, does the ERP allow you to track the physical movement of goods to allow you to manage financial risk and responsibility?
- Predict and control cash flow, with features to manage invoicing, payments and reduce debt
- Functionality to allow you to easily set up, and integrate legal entities and intercompany for data sharing and information flow across your operation
Prepare for your ERP implementation project and get advice on how to shortlist your ERP solution or ERP provider.
Embrace innovation in your distribution ERP
Ensure the ERP you choose is fit for the future, allowing your distribution business to move forward in a competitive and fast-moving industry. Watch out for innovations such as:
- Robotic Process Automation (RPA), to increase efficiencies, quality, monitoring and analytics
- Dynamic Pricing, leveraging Big Data from your sector and competitors to instantly suggest the best price point for your product range
- Artificial Intelligence (AI) and machine learning (ML) embedded throughout your ERP for enhanced decision-making including forecasting demand
- Speech-Based technology based on AI to support inventory replenishment and fulfilment (boosted by robotics)
- Real-Time currency hedging, to positively impact your margins across the global supply chain
