Distribution ERP is a vital part of distribution business and helps distributors in increasing the efficiency as well as effectiveness of their business.
In today’s fast-paced world, efficiency and effectiveness are now expected of all distribution systems at all times. Many distributors already use ERP (enterprise resource planning) systems to manage their shipments, inventory, accounting, CRM (customer relationship management), and more.
ERP software is commonly viewed as a mainstay of industry as well as something that should be useful in optimising operations across the board. Thus, it’s easy to assume that most distributors will take advantage of this technology as part of their operations.
Here are five reasons why you need ERP software if you’re in the distribution business:
Increased Demand Planning Capability
Today, most distribution ERP solutions are delivered with a built-in demand planning module that allows you to do demand planning at a very low cost. The module provides built-in reports that show forecast accuracy, the deviation from the actual forecast and how it affects your inventory.
An inbuilt forecasting module assists you to make educated decisions regarding inventory levels and potential purchase orders. Planning with actual historical information from your sales team will help you improve your forecasting ability.
As important as efficient operations are in a business, effective inventory management is key to sales and success. Companies may think that advanced forecasting and sophisticated reporting means they can make accurate decisions about the inventory they carry.
Inventory that is not aligned to demand can lead to a drop in sales turnover and the need for more space in the warehouse. Moreover, over- stocked inventory results in increased costs and lost profit potential.
Distribution ERP maximises inventory efficiency. It makes sure that you find the right product in the right place at the right time.
Supply Chain Management
An ERP software streamlines the supply chain and automates various processes, creating efficiency and reducing wastage, as well as tracking the stock. This removes all the human errors, adds transparency, reduces time spent on data entry and reconciling and speeds up your business processes overall.
Without an ERP, it can be difficult to trace a product from its origin to each stage of its lifecycle. Distribution Enterprise Resource Planning (ERP) software is very important in today’s world. This software plays a major role in growing businesses through increased productivity and lowering operational costs.
Reduced Operating Costs
Bringing down the operational costs by adopting an ERP solution can result in significant benefits for any business. In wholesale and distribution businesses, where a large number of transactions are taking place daily, processes require to be automated across different functions like financials, operations, logistics and warehouse management.
The cost savings from implementing a distribution ERP solution are many. It also makes running a business easier as all critical functions are integrated into one system that is easily accessible on-the-go.
Enhanced Quality Control
You can manage your inventory with an ERP solution, keeping a detailed record of all your products. By tracking and reporting lot numbers, batch numbers, and serial numbers, you’ll be able to identify issues as soon as they arise.
With a comprehensive view of your entire warehouse, you can keep an eye on quality control across all your products.
No matter what kind of distribution business you operate – from wholesaling to e-commerce – the goal is to sell and deliver products efficiently and effectively.
Of course, survival requires both, but efficiency is the name of the game since distributors that waste money are more likely to see shrinking margins in an ultra-competitive landscape.
ERP software can help distributors save money and improve efficiency, allowing them to run and grow their businesses more effectively.