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3 Main Components Of ERP Software Distribution And 5 Benefits

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ERP Software Distribution

A Wholesaler or Distributor is an important part of a distribution chain to form a network between manufacturers and retailers. Unfortunately, although these two things are very important for the whole supply chain process, it is rarely given attention to some of the ERP software vendors.

Although now has a lot of ERP software distribution that can meet the needs of manufacturers and retailers only a few are capable and can meet the needs in the wholesale and distribution industry.

Wholesale Business and Distributors

Wholesale and distribution are between manufacturing (manufacturer) and retailer (retailer) in a network supply chain. Simply put, wholesale is a business that should be able to fulfill the ordering of retailers by buying in bulk goods or products from suppliers.

In other words, the distribution acts as an intermediary agent between manufacturing 9manufacturers) and retailers by providing additional services such as providing selling value to the product, or taking an active role in the sale and promotion of products and processing product returns from retailers to producers.

But in fact, the lines between the wholesaler and the distribution are not always clear and bright, because not infrequently the wholesaler also provides distribution services and vice versa. Because that's a lot of companies wholesaler who then calls themselves as "Wholesale distributor"

ERP Software owned by manufacturers or retailers usually does not include the needs of the wholesaler as well as distribution as they require a wider functionality in some areas that do not exist in the manufacturing and retail business.

Following are the 3 main components that must be owned by ERP software distribution are as follows:

1. Distribution Management Process

The distribution management process is divided into 6 parts, among others:
  • Distribution Management planning
  • Sales Management
  • Purchasing Management
  • Quality Management
  • Customer Relationship Management
  • Barcoding

2. Supply Chain Management

This process is a process of managing all business operations between suppliers, manufactures, wholesale, distributors, retailers, and customers. ERP Distribution Software should be able to provide deep supply chain system functionality and covers to the following three areas, namely:

3. Back Office Operations

You have already understood and have learned that the following functionalities are very common and necessary for business management. This function plays an important role so that you can run your business operations smoothly, that are:
  • Financial Application
  • Accounting Application
  • Human Resource

Once you know the 3 main components of ERP Software distribution, then you also need to know and understand the benefits of such ERP software.

Benefits of ERP Software Distribution

And here are the 5 advantages of ERP distribution software for your company. Please read the following explanation.

Are you included in the following 3 categories?
  • You already have a distribution management system that can work well for your company.
  • You're still trying to accelerate your business process with an ERP system that's still crashing or even slowing down your production.
  • You have not tried the ERP system and want to learn more.

Regardless of your category, the automation offered by ERP software will be invaluable and worth considering. Having ERP software can assist you in managing a variety of complex processes with much easier.

Here are some of the benefits that you can get by using ERP distribution software, among others:

1. Improve Visibility

Making sure you can always see the whole thing about the business overview in your distribution company is crucial. But for most distributors, it is very difficult to do.

With the existence of distribution management software (ERP) e.g. as an example is Acumatica Cloud ERP, the distributor can get a lot of obvious benefits in every process done, starting from start to finish. The complete description given by such ERP software can help you in providing better visibility of how your distribution company is running.

2. Improve Warehouse Management

Although sometimes a manual process has its advantages, however, many traders start switching using ERP software with automated features to simplify their warehouse management process.

With warehouse management automation capabilities, they can enhance the warehouse management process and allow them to track and manage data from their various warehouses and provide real-time visibility into the inventory in transit, costs, and rearranging the amount that should be provided.

3. Planning Requests

Another advantage is that ERP software can perform demand planning. Knowing the clear picture of the amount of stock needed is crucial so you can always fulfill your existing orders without worrying.

4. Accurate Reporting

Distribution software is very useful for you to get more accurate reporting data. This is not only useful for precise decision making, but it is also very useful to collect data into accurate reports that can even be seen in real-time right now.

5. Automate The Work Process

ERP Distribution Software can take over some of the usual manual work you did before. You can automate a purchase order, so you can ensure that everything stays in your agreement. That way you can still take full control of your business.

That is the article about the 3 main components of ERP Software distribution and 5 benefits. Hopefully, this article can be useful for you.


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