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Home›Business›Why Do Distribution Companies Need an Advanced ERP Solution

Why Do Distribution Companies Need an Advanced ERP Solution

By Caroline Shaw
March 17, 2021
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Distributorship might not be a glamorous business, but it’s highly essential for the economy and overall business. Because without distributors, the supply chain management will crumble.

To ensure the proper functioning of the distribution sector, the distribution companies must adopt advanced ERP Solutions. There are many software solutions like Infor CloudSuite, to ensure the best results. In this article, you’ll learn the benefits of utilising an ERP Solution.

Greater Visibility Over Operations

Distributors often have a complex operation. Since they transact in bulk with businesses located in different locations, keeping track of every operation gets out of hand. International distributors have an even bigger challenge to handle. That’s when ERP can make your life easier.

An ERP system’s core functionality is to store data in a centralised location and make it available to everyone across the department.

With every data at your fingertips, you can have better visibility over your operations. Thus, you can make better decisions in real-time.

Automate Processes

You can automate a lot of your manual processes by using ERP software like Infor CloudSuite. From routine business processes to transacting orders, you can automate virtually any task with an ERP. A study found that a company using ERP software can better utilise its workers, resources, equipment, and workstations.

You can also allow the ERP system to learn and grow so it can help you be more productive. For example, CloudSuite integrates with AWS to facilitate Machine Learning. So the ERP tool will become more efficient as it gathers and processes data.

Reduce Order Times

One of the biggest challenges distributors have to face is managing orders. It’s quite hard to measure the supply and demand of the goods. But with an ERP, you can deliver on time, every time.

You can store all of the orders in a centralised place and analyse how much inventory you’d need. By storing in excess, you will have more goods sitting in your warehouse. With product shortage, you’ll have a hard time delivering the order in time.

So to strike a balance, an ERP is a must.

Reduced Cost

Businesses are meant to generate profits. And that’s the case with distributors too. Your profits will depend on how efficiently you can move the goods across.

Since the ERP software allows you to balance supply and demand, you’d be able to move goods at an optimal speed. And the direct result of it is the reduced cost of operation. You can also optimise other factors to reduce costs and maximise profits.

That’s one of the main reasons all businesses, and not only distributors, should utilise ERP.

Plan for Future in Advance

The most efficient processes require planning in advance. So you need to anticipate the scenarios and plan accordingly.

The ERP software can help you plan for the future in advance. For example, you can take orders in advance and store them in the ERP. By calculating the demand, you can procure products accordingly.

Thus, you can plan and execute your operations with an advantage over other distributors.

Some ERP solutions are proprietary, while others are open source. To utilise the tools to their fullest, you must work with a consultant if you have limited technical know-how. With that said, get started planning with ERP today.

TagsbusinessdistributionERP Solutions
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