What You Need to Know About ERPs For Distribution Companies

Meeting at Warehouse

Enterprise Resource Planning software is generally used to help individuals manage their business, with seamless integration of the various areas of a business’s operations to streamline the management of different departments. That being said, there might be a need for customized software solutions for different departments and industries. 

What Is Distribution ERP?

Distributors have a unique set of things that need to be managed, so it is important to have access to the correct tools. A Distribution ERP is a customized solution that provides the same things that a generic ERP does and a little more. The added features of Distribution ERP Software are specifically designed to meet the needs and requirements of the distribution industry.

Who Needs a Distribution ERP?

Anyone in the distribution sector can use a Distribution ERP. It’s a solution that all departments can use, including sales, logistics, accounting, supply chain management and warehouse management. 

Distribution ERP software can be used by the following industries:

  1. Third-Party Logistics (3PL) Providers looking to empower eCommerce Merchants to do more. They can use this technology to automate processes like order fulfilment.
  2. Food Distributors that need to manage their cost-to-serve. Changing demand, etc. 
  3. Wholesale distributors who want to better manage their shipments with real-time data regardless of their business model.

Many distribution industries often use ERPs, including vendors, apparel and retailer businesses, wholesalers and manufacturers. 

Signs You Need a Distribution ERP.

Many companies might not think they require an ERP system for their business. Often it is because they believe that their current system is working well enough. The truth is that there may be several overlooked telltale signs that a company urgently needs a new ERP system.

The following are some signs that it might be time for a new implementation:

Your Customers Are Complaining. If your customers are unhappy, it can be detrimental to the success of your business in the long run. The cause for customer dissatisfaction can originate from several places; you may struggle to communicate effectively with your customers, get orders out on time or navigate customer concerns.

Even if you believe that your legacy systems are operating correctly, it’s always best to start looking for solutions as soon as customers appear unhappy. Whether investing in new tools to help employees better perform their duties or enhance communication channels, a customized distribution ERP system can go a long way in solving customer unhappiness.

You Can’t Keep Up With Demand. The distribution industry is fast-paced and ever-changing, and if you don’t have the right tools to help you, you may fall behind the competition. One of the best examples of a large-scale, unforeseen change in the distribution industry occurred during the recent pandemic.

Due to these changes, along with the many new eCommerce innovations, companies felt immense pressure to adjust. Though this change may seem daunting, a good distribution ERP can help you transform your business so that it can keep up with any circumstance.

You’re Struggling With Old Inaccurate Data. Any business must have accurate visibility in their data and a way to accurately break it down. If you are using a distribution software system that is not customized to your specific business needs and issues, you won’t have the correct data when and where you need it.

This can be solved by implementing a distribution ERP that centralizes your data to have a single source of truth available to all your departments. With this data, you can have informed, accurate decision-making.

Your Business Isn’t Growing. It is almost impossible to grow when you can’t streamline your processes. This is because too much time is spent on mundane tasks leaving you with less time and resources. To incorporate innovation into your business, you must invest in software that can help you free up your time and resources.

Your ERP system must grow alongside your customer base and keep up with new demands. This will enable you to scale easily and quickly, preventing unnecessary setbacks. Finding a distribution ERP that can pull this off will also save you labour and finances in the long run.

Benefits of a Distribution ERP.

Distribution ERPs can change the entire way that a company works, in a good way. Here are just some of the top benefits you can look forward to when implementing a distribution ERP:

1. No More Data Errors. 

When you are using outdated software or multiple software solutions within one company, you will likely face some errors. Distribution ERP software aims to eliminate errors to create accurate real-time data when you need it.

2. Improved Visibility.

Automation allows you to save time while enhancing business capabilities. This is because end-users can easily track and manage data and product flows. Every step across departments can be followed, and real-time visibility will be enhanced. This allows managers and owners to create accurate forecasts, quickly track down problems and create remedies. 

3. Better Efficiency and Customer Relationship Management.

Distribution ERPs arrange and deliver orders in a timely manner, helping companies work more efficiently and with fewer errors. This helps improve customer service, and satisfaction and increases repeat business.

4. Increased Time Management.

Since mundane tasks have now been taken care of and business owners are free to focus on growing and streamlining their businesses, there is space for better time management. This means there is more time to focus on service improvement and marketing, for example.

5. Revenue Growth.

It goes without saying that when you save time, you save money. But that’s not the only way distribution ERPs can increase your profit margins. With the data acquired from your ERP system, you can review and manage existing operating costs, eliminating unnecessary expenses and allocating financial resources more efficiently.

6. Workload Management.

As your business grows, so will your workload. Distribution ERP solutions can manage this growing workload, thus relieving your team’s stress without having to hire extra staff members. 

7. Demand Planning and Forecasting.

ERP systems can provide distribution businesses with a clear picture of available inventory and inventory levels needed so that the business can effectively keep up with demand. If a company cannot plan for the expected demand and inventory costs, it may fall short of supply and disappoint customers.

Why Choose Sage X3 Distribution ERP?

For an ERP system to be the ideal solution for a business, it must have the features and capabilities to handle the industry-specific requirements that a company may face. Sage X3 is a complete business management solution that can transform how you manage people, operations and processes. This allows you to respond to changing customer demands promptly. 

With Sage X3, you can:

  • Maintain one system of records across all operations for accurate planning and forecasting.
  • Ensure compliance with local multi-currency and multi-ledger regulations, legislation, and multi-language functionalities.
  • Give your team the information they need with access to live dashboards.
  • Get insight from analytics and data from multiple sources and areas, and develop consistent analytical models.
  • Create consistent reports throughout the organization, trigger alerts, and create workflows based on Key Performance Indicators.
  • Stay Competitive and streamline your core processes.
  • Tailor your experience with a flexible system that will grow your business.
  • And so much more!

You can run your solution as a Sage service in the Cloud or on-premise. Find out more about how Sage X3 can be customized to fit the needs of your business by contacting Panni Management today. We’d love to hear from you.

Transforming businesses since 2009

For over a decade, Panni has helped companies transform their businesses to lead, innovate and be profitable. With the right combination of technology and experienced developers and consultants, we help companies with Change Management to achieve the organizational objectives. We believe in long-term relationships with our clients and provide top-notch support with fast turnaround times.

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