ERP For Wholesale Distributors

Business today has become very competitive. To maintain your position in the market, you need to engage with technology. If you sell your products in bulk, you need some automation help.

ERP for wholesale distributors is an effective way to manage your entire business. Let us tell you more about how ERP is useful for wholesale businesses.

What is ERP?

ERP is Enterprise Resource Planning. It is an automation software system. A wholesale distribution business includes a lot of processes. To make sure none of the tasks go unanswered, ERP is helpful.

ERP manages customer delivery services. It makes sure your customers receive products on time. Through ERP, you can manage financial accounts effortlessly.According to Selecthub, 88% of the organizations believe ERP has made their business successful.If you want to check the progress of your sales and company, ERP is a great option. When it comes to wholesale distribution, things can be chaotic. Not everything is human-possible.That’s where technology comes in handy. Enterprise Resource Planning helps you plan your enterprise’s resources.

As per a report by G2, the ERP software market is projected to reach a CAGR of 10.2% (from 2019 to 2026).

Suggested Read: ERP For Distribution Company

What are the benefits of using ERP for wholesale distribution?

There are various benefits to using ERP for wholesale distribution. You can include ERP in your business operations in multiple ways.A major benefit that ERP serves is that it reduces work for you. It improves efficiency by removing man-made errors. As per a study, ERP increases efficiency by 35%.

You get to track a real-time record of your stocks. Whether you are low on stocks or have an overstock, you can track the record in no time.To help you understand better, let us take an example.

Suppose, as a wholesale distributor, you have to deliver skincare items to a customer. These are a set of baby care products. Due to a lot of work, you end up delivering baby care products to customers who want adult skin care.

This will not only make a bad impression but also show unprofessionalism. Delivering again will take more time and money.But if you use ERP, you are less likely to commit such mistakes. This is because ERP will use automated-data filled up by the customer.

This method is time-saving, cost-effective, and creates a good impression, too.Several other benefits are discussed under the “key features” headline.

Suggested Read: Apparel ERP Software

What are the different types of ERP systems available for wholesale distributors?

For wholesale distributors, various types of ERP systems are available. Here are a few of them.

• Cloud-based ERP– Cloud technology is now over-taking traditional software systems. Once your data is in the cloud, you can access it from anywhere through the internet. This feature makes it more flexible and convenient. Another important feature is that it is light on the pocket.

• On-premise ERP- as you can learn from the name, is one of the traditional methods. You need to install ERP software on your in-house servers. If you want to use this model, you need to be ready to spend a lot of money. It requires manual maintenance and regular investments.

• Modules for ERP- This method allows you to focus on a single function. Let us say you want to automate only finances. Isn’t this one of the more difficult areas to manage? Human errors are most common in the finance department. If you try ERP modules, you can also use financial ERP modules. This way, you can save money and concentrate on what your company needs.

• ERP for Specific Industry-For wholesale distributors, ERP is an effective business management software. In the same way, ERP software comes in handy for various businesses.

If someone owns a food selling business, ERP is a great tool. It helps you track if any of the items are perishing. You can keep a constant check on food quality and expiration dates.

Depending on your purpose of management, you can select a type of ERP system.

Suggested Read: ERP for Agriculture Industry

Key features of ERP for wholesale distribution

There are some unmissable features of ERP that you must note.

• Inventory management

Inventory management involves A-Z of your business management. ERP takes responsibility for everything. From manufacturing to storage, and from processing to delivery of your items. You can track finances, quantity, and other details as well.

• Customer relationship management (CRM)

CRM is an important aspect of any business. Maintaining records of your customers is no easy task. Through ERP, you can customize offers and sale details. And let your customers enjoy the best deals. CRM via ERP makes your work simpler and your business more profitable.

• Order management

For wholesale distributors, order management is a challenge. The right order, the right quantity, and the right customer should go hand-in-hand. You need to make sure that you deliver the correct order and tracking ID to the customer.

To ensure this happens without errors, ERP has your back. The automatic process assures there are no mistakes in order delivery.

• Warehouse management

There are several steps that take place before delivery. Quantity of stocks, packing, picking the items, and then tracking the items. All these steps require timely checks. To make things easier for you, ERP helps you scan barcodes, track items, and keep you informed on stocks.

• Transportation management

As a distributor, your work is not limited. You need to confirm if the client has received the product. Transport delays are common, but your customers expect updates. In such times, ERP provides day-to-day details of the product.

This way, you and your customer can relax while ERP handles transportation management.

• Financial management

Every business finds financial management a tedious task. It requires utmost concentration and attention. If you own a large business, ERP has to be your guide. You cannot manage day-to-day transactions manually. ERP manages online payments and refunds.Transportation and delivery costs are also manageable through ERP.

• Reporting and analytics

Whether you want to create a monthly report or want to learn customer behavior, trust ERP. By analyzing your sales and customer feedback, it creates reports for you. The data is accurate, and the results are faster. You can check for insights through ERP software.

Suggested Read: How to Reduce Cost in Manufacturing

How to choose the right ERP system for your wholesale distribution business

Choosing the right ERP system for your wholesale distribution business is essential. Refer to the following points before you invest in any ERP system.

1. Understand the need of your business-

The need for the business depends on what business you own. There are certain areas that lack manpower. Or even if you have manpower, human errors are unavoidable. Accordingly, you must decide which system will suit your business the best.

2. Data Security-

We often hear about data breaches. Now that the world is online, these things are often in the news. The ERP system you select should follow strict data-security guidelines. This way, your customers trust you with their information, like their phone number.

3. Determine the Budget-

ERP systems come in various price ranges. But with cost, features also differ. If you determine your budget beforehand, you can select the best ERP system. Remember that it is not about a one-time investment. Your ERP may need time-to-time assistance and services.

4. Accessible to all

Your work force will include employees of various backgrounds. Freshers may find it hard to understand or work on an ERP dashboard. A better user interface (UI) will help your employees manage their work well.

Mobile-accessibility is another important feature. It may not always be possible to use a laptop or PC. Make sure the ERP system you choose is compatible with mobile devices or smartphones as well.

5. ERP Customization

Ensure your ERP system allows you to make changes whenever required. You may need to add or remove any of the particular programs. Customization helps you determine your business needs and assess the necessary details.

How to implement ERP for wholesale distribution

Once you are sure about which ERP system to buy, the next step is implementing it in your business. Follow the steps as a guide-

Plan your Project-

We have already discussed above that you can choose ERP systems based on your business type. It is essential to have a rough idea of what your business will include. As a wholesale distributor, you can outline stock tracking and quality checks.

You should identify where your business falls behind. Then, allow ERP to work in such areas.

Data Transfer-

All the customer and product data that you have till now is crucial. You cannot lose it at any cost. Allot a proper time to transfer your data to the new ERP system. You should take this action as soon as you can.

This allows the ERP system to understand the analytics and store further data.

Employee Training-

Not everyone is familiar with using ERP. You should set up training for your employees so they learn how ERP works. This should focus on an ERP system for your business.

Improvement, Investment, and Testing

Regular updates are important. Study what your customers want and how you can make your business better. Accordingly, customize your ERP system. Maintenance of the ERP system is also necessary. Before you make anything live, always run a test first.

Hope you now have a better understanding of how ERP works. ERP for wholesale distributors makes workflow easy.

Contact Blue Lotus 360 a  ERP company in UK to get ERP for wholesale distributors.

See Also:

• ERP For Distribution Company