12 Reasons Distributors Need ERP Software

Foram Khant
Read Time: 4 Minutes
12 Reasons Distributors Need ERP Software

ERP has become important for almost all the business to go digital beyond the traditional working. It is especially useful for the distributors as it brings all the important parts together of the distributed business. Bringing up together is the lifeblood of any distributed business unit, and it is far more efficient.

There are numerous ways that improve distribution efficiency, and it is next to impossible to outline the full list. Hence, we are here with a few of the most important ways that ERP software deals with.

Real-time data analytics

  • The organizations quickly move towards growth and the decision-makers of the unit need to stay up-to-date with the data. It can be difficult with minimum staff, expertise, or financial resources. Hence you need to get the support of advanced on-premise and online software.
  • The could-based ERP Software has the latest analytic tools that help you set up storage and resources as per requirements. 

Knowing true costs

  • The modern ERP software provides the distributors an ability to determine the profitability of the warehouse, product line, and the overall business unit. The reporting and data visualization features help the distributor to spot the cost overages and other problems on profitability that may affect the financial reports.

24/7 customer support

  • Successful distributors are always aware of the fact that every work depends on the customer experience and satisfaction during the engagement opportunity. And most importantly, the customers always have higher expectations. There the distributors face challenges regarding how quick, efficient and continuous they can become regarding service either on-road or after hours.

Driving overall operational efficiency

  • One of the reasons every distributor must look for ERP software is due to its feature of improving the operations across the board. The distribution industry that stays competitive, has thin margins where efficiency results in higher profit.

Accelerated implementation

  • The implementation of the on-premise ERP software may take few months or maybe years to complete. It includes assessment, planning, process improvement, and the selection phases, hardware purchases, installations, trials, workings, and many more.
  • The cloud system ERP can be step up in far less time than the on-premise software as it removes the steps of purchasing and installing hardware, configuring, and implementation of software. The cloud ERP can become life in weeks.

Reduction in order times

  • The automated sales order processing feature that is available in the ERP software eliminates the delays faced in order fulfillment and shipping. It also enables setting up the rules for handling credits, returns, drops shipments, and many others across multiple warehouses. Enabling every activity through a single system helps achieve efficiency.

Running efficient warehouse

  • More efficient warehouse results in more profitable distribution of your business unit. The warehouse management system shortly known as WMS comes in handy with the modern ERP software the helps to streamline the processes. The system cover workflow across all the receiving and sending inventory management as well as the activities of modern tools such as barcode scanning, mobile device connections, and many more.

Reduced maintenance

  • Along with going live quickly, opting for the cloud ERP software results in let IT staff time spending for the maintenance of the system. As a result, more time is available for doing tasks having more importance and strategic value. The ERP software provider keeps installing patches and updates to provide you with the most current version of the software that lets you access the latest features and functionalities.
  • Additionally, the cloud provider is even responsible to keep installing more storage and upgrading the nodes, running power, and cooling servers.

Robust security

  • ERP software consists of large quantities of sensitive data of the organization including customer information and payment details. A security breach may result in very costly effects and loss of revenue and customer trust.
  • Traditionally security has been considered as a barrier of the cloud adoption. But on the other side, cybersecurity is the biggest support for the cloud system. The cloud providers have a security experts’ team and also compliance with the experts has far more expertise than the hackers.

Lower TCO

  • Even though cost should not be considered as the only factor while adopting a cloud ERP software but it is still considered as the important reason why your organization basically moves towards it. Additionally, the money is not only saved by not owning the hardware but also the software reduces the cost of hiring specialists for the implementation and maintenance of the activities. The cloud provider takes care of all such stuff.

Improve customer satisfaction

  • The modern ERP software allows the distributors to become efficient in the management of their distribution process. The distributors get real-time values from the inventory and the inventory costs, its transits, and reorder quantities. This transparency and visibility results in low operating costs and clear as well as productive communication with the customers. This even helps to cut down the misunderstandings and delays in response that lay negative effect on customer satisfaction.

Staying on the top of the supply chain

  • ERP Software enables the distributors to ensure a steady and continuous supply of goods for distribution. This is accomplished by automation and optimized purchase process, purchase order management, and supply chain management.

Those are just the 12 most important reasons that provide distributors with the benefits from modern ERP software. The list is long and full of benefits. The distributor can also push up the profitability of the business by using a better cash cycle, advanced inventory management, requisition management, advanced financial tools, and many more.

Distribution is more about logistics rather than activities and work. Without the use of correct tools, it is impossible for the distribution companies to compete. We have considerable experience in software, equipping clients with the industry with the use of specific tools that ensure a smooth process, reliability along top-notch security.

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