Managing multiple vendors, price lists, and supply chains is never easy. Besides, wholesalers and distributors regularly need to control their operational costs to remain competitive while maintaining their profits.
This is where distribution ERP software comes in. It gives you complete control over your orders, transport, and inventory costs. You can also use it to send custom quotes to clients, create financial reports, and forecast demand.
This blog will help you understand distribution software and how it benefits your business. Let’s get started!
What is Distribution Software?
Distribution software is a business application that helps distributors manage everything from purchase orders and inventory to sales and finances. It provides an integrated view of inventory levels, sales orders, and shipments across your network. You can use it to manage order fulfillment, track product shipments, and monitor shipping costs. The software also has built-in reporting tools to help you make better business decisions quickly.
In other words, it is designed to help businesses improve efficiency, reduce costs and gain a competitive advantage.
Key Features of Distribution Software
While the exact features differ from solution to solution, the best distribution ERP software, like FirstBit, is packed with several advanced features. Built for trading companies, it includes real-time product information, customer transaction history, demand forecasting, and IFRS-compliant financial reporting.
Let’s now dive in deeper and look at the key features of distribution software.
1- Purchase management
The first step to a distribution business is purchasing goods from the right place at the right price. Thus, distribution software solutions must allow them to track everything related to purchasing. Therefore, you should expect the following features.
- Purchase order tracking
- Accounts payable control
- Inventory demand forecasting
- Goods receipts notes
- Supplier’s payment detailed by orders and invoices
- Allocating additional expenses involved in purchasing (e.g., transport, customs, etc.)
2- Inventory and Warehouse Management
The better you manage your inventory, the higher your profit margins. That’s because you will spend more on fast-moving items and have a streamlined process to prevent theft and loss.
- Real-time inventory tracking
- Bin-location and multi-warehouse management
- Inventory SKUs, characteristics, batches, and expiry management
- Insights into fast and slow-moving inventory
- Minimum stock balance control and alerts
3- Sales
A distribution ERP aims to help trading companies manage all distribution aspects, including sales. It should allow you to track customer information, order status, and consignments in real time. Look for these sales features in your ERP system.
- Create quotations for customers
- Real-time information on goods, prices, and availability
- Sales order status tracking
- Mobile application for field sales
- Manual and automatic discounts
- POS interface
4- Finance and Accounting
Accounting is a critical part of any business, and you need a robust system to eliminate discrepancies. An ERP gives you a comprehensive view of your financial performance and enables you to optimize it for higher profitability.
- Cash flow forecasting and management
- Fixed assets accounting and depreciation
- Employee expense report and reimbursement
- Deferred expenses and prepayments
- Bank reconciliation
- Cheque printing and accounting
- Month-end and year-end closing
5- HR & Payroll
Distribution businesses hire hundreds of employees to manage their operations. Thus, they need a system to address their payroll and human resources needs. Good ERP distribution software brings everything under one umbrella, including HR and payroll.
- Payroll calculation
- Automated sales commission calculation
- Industry-specific employee inventory accounting
- Vacation and sick leaves calculation
- Custom accruals and deductions
- End-of-service calculations
Benefits of ERP Distribution Software
The right ERP helps businesses reduce operational costs, streamline processes, and improve efficiency.
- Enhances visibility: Distribution ERP software provides real-time visibility into your inventory data, allowing you to monitor stock levels and review order status information at any time. This enables you to reduce costs by avoiding overstocking or understocking products while maximizing sales opportunities.
- Improves collaboration: It allows different departments, such as sales, accounting, and logistics, to share information about orders, shipments, and other transactions in real-time. This enables each department to collaborate more effectively on order processing and fulfillment tasks, leading to higher productivity.
- Improves efficiency: Distribution ERPs can help you improve efficiency by automating tedious processes like data entry and order status updation. This frees up time for them to focus on more important tasks.
- Augments scalability: The software helps you manage multiple warehouses and locations across different geographies. This makes it easier to expand your business without hiring more staff or buying additional tools.
Wrapping Up
Distribution software solutions are designed to help companies better manage their distribution operations. It allows them to bring everything from purchase orders to sales orders under one roof. This level of visibility helps the management team make more informed decisions to grow their business.