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What is Distribution ERP?

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Wednesday, 01 April 2020
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What is Distribution ERP?

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4/1/2020

Everything you need to know about Distribution ERP

The distribution industry is being streamlined by the implementation of ERP (Enterprise Resource Planning) software systems which collate industry information and automate processes. Here’s what you need to know about this innovative business solution. 

What is ERP software?

Basically, ERP software is a business management platform that stores, manages and communicates data across all business functions. This data can be efficiently transferred across all departments in real-time to streamline processes. Some of the ways ERP software can assist businesses with daily activities, are within:

  • Human Resource (HR) management
  • Financial management
  • Sales and marketing
  • Customer relations’ management
  • Manufacturing
  • Supply chain management
  • Purchasing
  • Distribution 

What is Distribution ERP?

This particular software proves incredibly beneficial to the distribution industry and is revolutionising how companies operate. Distribution ERP tools use Business Intelligence and Customer Relationship Management capabilities which enlighten operators about buying habits. 

Features of Distribution ERP

When it comes to Distribution ERP, there are a number of useful tools included, such as: 

  • Financial reporting
  • Inventory management
  • Reporting and analytics
  • Warehouse management
  • Vendor relationship management
  • Shipping and logistics
  • Fleet management 
  • Marketing
  • Sales order management 

Benefits of Distribution ERP

Here’s a look at exactly how Distribution ERP software is benefitting the industry at the moment. 

1. Remove data errors

When using a multitude of software in one organisation, it is likely that you will encounter repetition and errors, something which Distribution ERP software strives to eliminate. 

2. Improved visibility

Automating the management of inventory means no more manual processing which saves on time and enhances business capabilities. This means end-users can track and manage data and product flows across departments, following every step and enhancing visibility. This means business owners and managers can easily identify the parts of the process which work effectively, and which parts need remedying. It also means historical data can be used for effective forecasting and planning. 

3. Enhanced quality

By improving the visibility of the distribution process, Distribution ERP software also highlights quality issues which can be tracked and attended to quickly. The ERP software results in better quality products and lower costs related to malfunctions. 

4. Identify inconsistencies

ERP software allows business owners and managers to spot discrepancies between inventory listing and stock numbers, preventing errors in transactions, deliveries, stocks and sales. 

5. Elevated efficiency and customer relations

Because orders are arranged and delivered timeously through Distribution ERP, companies are much more efficient. When a company is running efficiently, customers are getting their orders and this satisfaction will most likely lead to repeat business. 

6. Better time management 

An efficient business process means huge savings in time as menial and manual tasks are now being incorporated into the Distribution ERP system. Tasks such as inventory and accounting are not consuming as much time which frees business owners to focus on business-developing solutions such as service improvement and marketing campaigns. 

7. Growth in revenue

Savings in time and money, as well as more streamlined business processes, result in a growth in revenue. Business owners are better-positioned to identify and manage costs, while allocating financial and human resources more effectively. 

8.  Manage the workload

These various business-boosting benefits will see a growth that results in a bigger workload. However, rather than overwhelming staff, Distribution ERP systems can manage the workload, leaving staff happier. There is also no need to hire extra staff which saves on costs.

9. Demand planning

Implementing Distribution ERP software provides a clear picture of the inventory levels needed so business owners can keep up with customer orders without having to disappoint customers with short supply. 

Questions to ask when investing in Distribution ERP

You will need to partner with a reputable ERP software provider who offers a seamless integration process and ongoing ERP support. When deciding on a Distribution ERP option, you should ask:

Is this ERP system specifically for my industry?

There are many Distribution ERP systems but they’ve been formulated for different industries. If the system is not wholly compatible with your industry, then you’ll be missing out on many of the benefits associated with this system. 

How much functionality is needed? 

There are different-sized ERP solutions for different businesses so make sure you ascertain what is needed for you. The system will need to both handle your current operations but also manage as the business grows. On the other hand, an over-sized system could have unnecessary features that are a waste of money. 

Industries that can benefit from Distribution ERP

There are so many industries that benefit from Distribution ERP software, here’s a look at a few and how they are leveraging this innovative system. 

1. Food and beverage distribution

The ERP software systems for food and beverage distribution allows for quality assurance at every step. Product delivery timelines, storage conditions and scheduling tools are all built into the Distribution ERP. This is key with perishables as health is obviously a major concern and regulations will have to be met.  

2. Consumer goods

The handling of non-perishable consumer goods is prioritised with this form of Distribution ER through forecasting tools. Elements such as barcoding technology and associated tracking devices will feature here.

3. Medical products

This industry has many industry-specific regulations that demand accuracy to ensure standards are maintained for medical supplies. Features included in this Distribution ERP system are inventory handling, pricing, customer-facing analytics and reporting. 

4. Trade wholesaler

This industry requires the handling of a large number of products which need to be managed and cross-referenced to ensure product co-ordination. 

5. Automotive 

This is a more global network of distribution requirements and focuses on parts’ management needed for servicing of all vehicle models. Included in the ERP software tools are specifications like weight, price, warranty and labour details. 

6. Building maintenance

From structural and cleaning products to those needed for installation, the building maintenance industry benefits greatly from Distribution ERP. 

It’s clear that Distribution ERP software is an asset to almost every industry. It streamlines operations, provides inter-departmental efficiency and boosts revenue. Working with an experienced organisation like Omni Accounts ensures you don’t make any ERP mistakes and end up with the best ERP software fit for your particular business needs.



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