{"id":2329,"date":"2019-07-23T18:44:46","date_gmt":"2019-07-23T18:44:46","guid":{"rendered":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/?p=2329"},"modified":"2022-07-08T19:51:23","modified_gmt":"2022-07-08T19:51:23","slug":"what-is-distribution-erp-software-and-why-do-you-need-it","status":"publish","type":"post","link":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/what-is-distribution-erp-software-and-why-do-you-need-it\/","title":{"rendered":"What is Distribution ERP Software and Why Do You Need It?"},"content":{"rendered":"

\"What<\/p>\n

Enterprise Resource Planning (ERP)<\/a> systems are business management platforms that businesses, manufacturers, and distributors use to collect, store, manage, and communicate data across all functions of the enterprise. By integrating information from all areas of a business (including product planning, development, HR, manufacturing processes, sales and marketing and more into one complete enterprise system, ERP systems allow data to be shared across departments in real-time in order to streamline processes and automate common tasks.<\/p>\n


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Often times,\u00a0ERP systems are closely related to the manufacturing and distribution industries<\/a>, but it\u2019s never really discussed how or if they differ. For this article, we’ve chosen to focus on explaining distribution ERP software<\/a> and providing some of the reasons why you need it.<\/p>\n

What is Distribution ERP Software?<\/h2>\n

ERP software represents a bold new vision for distribution and how distribution companies operate. If you look at Manufacturing and Distribution business processes from a macro-level, they seem undeniably similar. The order to cash process, identification of potential customers and management of the\u00a0supply chain<\/a> are very much alike. However, when you start to peel back the layers, order quantity and order volume is where they differ. Small manufacturers typically deal with small orders; small distributors deal with large orders and generally have a greater volume of orders to manage.<\/p>\n

Distributors place bulk orders with the manufacturer and then sell far smaller quantities to either retail stores or end-user customers. Distributors handle the logistics and marketing requirements that manufacturers don\u2019t want to or aren\u2019t able to handle in house. Since the two verticals work in different areas of the supply chain, their technology must conform to different needs.<\/p>\n

Distribution ERP tools are typically built with (or combined with) business intelligence and Customer Relationship Management (CRM) capabilities<\/a> that provide valuable insight into customers\u2019 buying habits. Distributors technically need more tools<\/a>\u00a0as they provide end-to-end solutions. Features such as fleet management, inventory management, marketing and shipping are all necessary for a successful distributor to run their business, but are not necessarily important to a manufacturer.<\/p>\n

Why Do You Need It?<\/h2>\n

Regardless of size, an ERP system should provide functionality for all of your business processes by streamlining them from one single database. But what happens if something goes wrong? Say, for a distribution company, if your run out of stock, or one of your delivery trucks gets a flat tire, or you miss a delivery date?\u00a0<\/em>Having an ERP system can alert you of any issues you may run into immediately, potentially saving you thousands of dollars.<\/p>\n

From an economic standpoint, an ERP solution helps distributors keep track of pricing. Forecasting elasticity and pricing demands is virtually impossible to do manually, so an ERP is critical to staying competitive in the distribution market.<\/p>\n

Benefits of distribution ERP<\/h4>\n