Why Distributors Need an ERP System

WhyDistributorsNeedanERPSystemFacilitate Company Growth and Increase Profits with an ERP system 

If you’re a distributor that has been successfully operating without an enterprise resource planning (ERP) system, you may wonder why you’d need to bother making that huge adjustment. Yet, distributors who don’t utilize an ERP system frequently overlook small system mistakes or supply chain inconsistencies. Implementing an ERP system will bring your distribution business up to speed with today’s technological age and give you a competitive edge.


Today, distribution industries are increasingly focused on company growth, customer engagement, inventory management, supply chain and procurement optimization, and sales growth. With an ERP system, your business can achieve all this and more while staying competitive in the evolving market. Outlined below are just a few of the benefits of introducing an ERP system to your distribution business.


Improve Customer Satisfaction 

Successful distributors know everything depends on customer experience during every engagement opportunity. Distributors are challenged with meeting customers’ high, evolving expectations. With connected ERP software, you can easily meet these demands. 


A modern ERP suite provides you with real-time visibility into available inventory, inventory costs, inventory in transit, and reorder quantities. This visibility translates into low operating costs and clear, productive communication with customers. Plus, this visibility allows you to minimize misunderstandings and delays that negatively affect customer satisfaction.


Increased Revenue Growth 

ERP systems are designed to seamlessly integrate with your business, giving you updated, real-time visibility into your sales and revenue data. Thus, providing a deep understanding of your revenue and how to best facilitate revenue growth. 


With this information, you will be in a better position to identify and manage cost variances. You will also be able to allocate financial, human, and operational resources better. This will eventually lead to rewarding outcomes such as upward revenue growth and business expansion. 


Gain Greater Company Visibility 


For many distributors, seeing the big picture within your wholesale distribution is a real pain point. Without the ability to see both inbound and outbound product flows clearly, making day-to-day decisions can be difficult. 


An ERP distribution software lets you see every step in the process from start-to-finish. This complete view into your supply chain gives better insight into how your organization is running, stopping problems before they can cause damage. 


Additionally, an ERP solution allows you to relay information to customers through fulfillment notifications before and after delivery. Such real-time communication keeps customers both updated and happy. 


Save Time and Money with Automated Workflows 

A distribution ERP software can save you precious time and money by eliminating the daunting task of manual process inventory management. The software creates automated scheduling and workflow capabilities, saving you time and allowing you to focus on the core of your business. 


Further, the software allows you to automate the scheduling of a variety of tasks and workflows. These automated inventory management capabilities improve your management processes by allowing end-users to track and manage data across multiple warehouses. That way, you have real-time visibility of current inventory in transit and costs. 


Wrap Up

Distribution is all about logistics. Without the right tools, distribution companies simply can’t compete. With an ERP distribution management system, you will be able to easily grow your business, improve customer relationships, and increase revenue growth. 


While ERP software could greatly benefit your business, choosing the right software can be daunting. We recommend software that will help you achieve your unique business goals. When you begin the search for the right ERP software, be sure to contact Datix. We can help you develop a digital strategy and select the best system to maximize your software investment!



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