If your company is in the distribution business, the distribution software functionality of an ERP will be of great interest to you. While this is a standard functionality for ERPs, you can find that it is not robust enough especially if your distribution practice is complex.
Choosing the right application can help you solve all your problems and introduce greater efficiency in the business. Let us see about the major problems and solutions for distribution firms.
Aligning with demand
As a distributor, the main challenge that you face is aligning all your business resources towards the demand that you have. You need great agility in your company to scale your operations up to meet the increasing demand or scale down at times when there is a lull in the market.
This nimbleness is possible only when all your supply chain partners and managers are empowered when the latest and complete information is available to them at all times. A web based ERP solution allows access to this information from anywhere and at any time. This instant availability of information improves business performance to a great level.
Inventory is the backbone of your distribution business and also the toughest to manage. If you are not aware of your inventory status, you cannot make informed purchasing decisions and run a proactive sales operation.
When you have multiple store locations it becomes tougher to maintain this visibility over a period of time.
Selecting an ERP application that has automated inventory management features with support for multiple inventory locations will help you manage your inventory better.
Such an automated environment will be a boon to you if you assemble your products before distributing them as the kitting process is faster and accurate without any material issues. A software product with barcode support functionality through handheld devices improves inventory accuracy greatly.
Your success in the distribution industry depends heavily on your stakeholders. While you strive to satisfy your customers, you should also ensure that your suppliers are happy.
It is not always possible to gratify all their needs at the same time, especially with you being in the middle as a distributor.
But with an efficient ERP system you can break this jinx. Advanced invoice settlement features ensure better cash flow while an efficient order processing system makes sure that you handle a higher volume of orders with greater efficiency.
Flexibility for growth
Growth is inevitable for any business. It is also a double edged sword. It can break your business if you are not ready for it.
When you opt for a system that offers robust accounting, flexible financial management and completely integrated supply chain management among other features you can rest assured that your growth will not impact the business in any way.
By selecting the perfect hosted ERP software you can enhance your operational efficiencies and thrive in an otherwise challenging business environment.
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