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14 Benefits of ERP for Wholesale and Distribution Industry

14 Benefits of ERP for Wholesale and Distribution Industry

Wholesale and distribution involve a variety of processes and workflows, from acquiring goods from suppliers to distributing them to retailers and end-consumers. If these processes are manually managed with separate systems, it won’t be easy to monitor and analyse the performance of each process. Using ERP solution for end-to-end processes in a wholesale and distribution business removes time-consuming manual processes and eliminates human-related errors. Below are the benefits of using an ERP for the wholesale and distribution industry:

benefits of erp for wholesale and distribution

Main benefits of ERP software for wholesale and distribution

  • Reduced operating costs
  • Streamlined supply chain processes
  • Better management and tighter stock control
  • Optimised inventory management
  • Improved communications
  • Simplified sales processes
  • Comprehensive visibility
  • Better demand planning
  • Better quality control
  • Real-time information across all departments
  • Enhanced customer satisfaction
  • Improved business performance
  • Improved reporting accuracy
  • Better productivity

Reduced operating costs

As in any business, the cost can have a significant impact on the profitability of any business. ERP solution automates vital business functions across different departments and generally would mean cost savings. For wholesalers and distributors, automating processes across financials, operations, warehouse, logistics, and operations removes the need for tedious, complicated, time-consuming, and repetitive manual tasks. Additionally, information and insights generated from ERP solution can help drive further cost savings through better accuracy in forecasting, smarter inventory management, and having a leaner supply chain.

Streamlined supply chain processes

All wholesalers and distribution operations involve purchasing of goods from suppliers, managing inventory in the warehouse, and shipping to the customers. An ERP software can help you place orders automatically from your preferred suppliers when stock levels are low, track your orders from your suppliers, manage the incoming and outgoing stock in the warehouse and shipping out to the customers. All information is available in your ERP software for better visibility of your entire supply chain and better management of the processes.

Better management and tighter stock control

Manual processes are time-consuming, tedious and error-prone. An ERP solution helps you to manage your inventory better with the availability of information to forecast ups and downs of demand to improve procurement. The use of ERP in a warehouse also improves tracking of stock in warehouses of different locations.

Optimised inventory management

Effective inventory management helps ensure that the right stock is available for sale when there is a demand for it. It is also essential not to have an excess supply which can lead to dead stock over time. The availability of real-time information across departments will enable businesses to have a better forecast. Companies can use the forecast to ensure optimal inventory in the warehouse at all times. For multiple warehouses, and ERP facilitates the transfer of stock between different houses for a smooth and trackable inventory movement and management.

Improved communications

Having ERP solutions enable all communications between customers (as well as internal communications) to be stored in one single location for easy retrieval and follow-up. All employees would always have access to the latest and updated information by assessing the ERP solution, and need not rely on external emails, documents or notices.

Simplified sales processes

Managing the sales team’s performance is much easier with the use of ERP solution as all information is easily accessible. Sales status can be easily monitored through a sales pipeline which can also help in demand forecasting. The sales team will also have access to the availability of stock, detailed customer information, product information and updates to be an effective salesperson.

Comprehensive visibility

The ability to know the details of each process, inventory flow, sales information, forecast and more is vital for any business to make better decisions. Having an ERP solution enables you to have access to vital information across finance, inventory, procurement, warehouse, sales and more. All information is integrated and available in real-time from one single application.

Better demand planning

ERP solutions will also provide you with the ability to plan better. You can have access to real-time status of inventory in your warehouse, incoming and outgoing so that you can plan your purchases better. Improved forecasting based on information from the sales team and actual historical sales information will enable predictive analytics to provide a better forecast. All this information can be used as a guide for better demand planning.

Better quality control

You can better manage your inventory with an ERP solution – tracking number, lot number, batch number – so that you can immediately pinpoint issues when it arises. You can have better quality control overall due to the transparency of information across your entire warehouse.

Real-time information across all departments

Eliminate unnecessary reports and ad-hoc report generation with real-time information in an ERP solution that is available to specific users across departments. Users can immediately access the information and reports without the need to search for emails, files and documents. You also get the latest and updated information directly from the system – no more time-consuming task of generating reports.

Enhanced customer satisfaction

Engage better with customers with personalised approaches that are made possible with access to customer details, order history and past interactions. Solve customer questions faster with access to real-time information. All these and more will help you improve customer interaction and satisfaction.

Improved business performance

The availability of information across departments improves visibility of performance. Data and information enable you to spot trends, know the better performing product/service, know your sales performers, and also to understand where you lack in or where your strength is. All these information are golden nuggets to enable you to take action where needed.

Improved reporting accuracy

Integrating data flow across departments minimises manual processes which are time-consuming and error-prone. Without the need to copy, paste and merge documents and data, you will have better accuracy of data in your reports. Information that you obtain from your reports is directly pulled out from the system itself.

Better productivity

One of the more significant benefits of ERP is the boost in productivity. For instance, it can eliminate the need for tracking inventory manually using spreadsheets, paper and pen. Manual processes like this are time-consuming and error-prone. Using an ERP removes the need for manual processes of such, freeing your employees from the repetitive task so that the employees can focus on more important things like strategising on growing the company and managing your customers.

Contact us to start evaluating an ERP solution for your business.

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