A key part of making your distribution business more profitable and productive is investing in the right ERP software. Balancing business growth and distribution efficiency can be difficult while managing different parts of the business, such as inventory and logistics, customer service, financial forecasting, and marketing. This is what ERP solutions for distribution companies have been designed to do.
It is important to invest in a high-quality and easy-to-use ERP system that integrates a variety of digital management, manufacturing and distribution tools, and offers businesses the opportunity to monitor their entire supply chain from a central hub. Wholesaling is a notoriously difficult industry with business challenges like massive product orders, diverse downstream customer expectations, narrow sales margins, lengthy lead times and unpredictable supply conditions.
Fortunately, distribution ERP software gives owners and managers the tools and data access they require to simplify these processes and streamline almost any step in their daily operations.
Distribution software for small businesses
You might be asking if this works for small distribution businesses too and the answer is: it does. You do not need to run a large or multinational distribution company for ERP software to benefit your organisation. By compiling all of your important business data into centralised location, you can monitor your daily operations from anywhere and at any time – and that helps distributors of all sizes.
Using distribution ERP software helps companies optimise their supply chains, save time on logistics and administration, reduce unnecessary complexities and improve financial management. This can benefit any distribution company, no matter the size, and gives owners time to focus on other important areas of their business, like financial growth or scaling up operations.
The benefits of integrating distribution ERP software into your business
Improve customer services with mobile and accessible technologies
One of the easiest and most effective means of improving your customer service is by taking control of your supply chain. Some of the major challenges facing wholesale distributors are mobility and access, both in the warehouse and on the road. Without mobile distribution systems and accessible consumer interfaces, your business will be at a disadvantage.
Slow computer terminals, inaccurate stock counts and poorly managed supply chains will, inevitably, end up wasting your customers’ time and losing new ones. Having a single, accessible and mobile digital hub gives every department access to the data they need. This can help optimise and digitise every part of your supply chain, so you do not get left behind in this fast-paced distribution industry.
Get the most out of your stock
Managing your stock levels is a constant balancing act between your company’s inventory and consumer demand for your goods. By using warehouse and distribution software, as part of your overall ERP solution, your company simplify the entire process of balancing supply and demand. Distribution businesses need to keep their fixed assets (such as stock) as low as possible because they represent a significant cost in annual financial statements.
The impact of having limited stock of popular products or offering items that are unavailable can be disastrous for your company. It is critical to have an effective product distribution system and an efficient supply chain feeding it. Getting orders wrong or having insufficient stocks for orders that have been placed will lead to lost sales and damaged customer relationships.
Do not get stuck in traditional systems
Traditional systems for managing inventory, consumer relations and sales numbers will all include slow, agonising human inputs into spreadsheets that are susceptible to error and inefficiency. Do you know who your best customer is? Or what is your most popular item? Or, perhaps, how many shipments left your warehouse last month?
All of these questions can be answered instantaneously when using the real-time data and actionable insights provided by a distribution ERP system and its many tools. These numbers are being updated constantly and are easily accessible to anyone with clearance and an IoT device. Avoid endless spreadsheets and labour-intensive, manual databases with intelligent ERP software and its many digital tools.
Take control of your supply chain
With ERP software that is designed for distributors, you will have improved visibility across your company and throughout your supply chain. This collects reliable information that ensures accountability for every stakeholder in that supply chain from manufacturers and suppliers to warehouse staff and customers.
Get complete oversight into various business operations and monitor actionable business data, such as inventory availability, warehouse operations, financial statements and product profitability. This helps distribution teams manage and distribute orders more efficiently and executives streamline their business operations and focus on overall growth.
Increase your profit margins
Focusing on overall growth means increasing your profit margins. With distribution accounting software, you will be able to make more informed business decisions and improve overall productivity. Companies can gain actionable insights that are used to streamline daily operations, manage supply chains and track sales and performance. These valuable data points are what can improve your profit margins and separate you from your nearest competitors.
Empower your teams
With cloud-based ERP systems and the, seemingly, endless software options and digital tools that come with them, distribution companies are able to empower every team, department and employee in their organisation. By giving your distribution and warehouse teams easy access to all of this incredible data and invaluable insight of ERP software, they are able to find anything they need from customer histories to stock levels and business promotions to delivery availability.
With Sage, it’s easy to compete and thrive in this complex and fast-moving industry. For distribution companies that want to reap the benefits of specialised ERP solutions for your business, contact Lorge today and get in touch with one of our brilliant consultants.