How Distribution ERP Improves your Inventory Management?

May 26, 2020
Nandinee Biswas
Distribution ERP Software Distribution ERP Software

Juggling inventory often leaves distributors saddled with an overabundance of goods sitting in the warehouses or a scarcity of on-demand stock. Both situations cost you money. But the later can lose you customers and even damage your reputation.

Therefore, managing the inventory is the top priority for any distribution business. We now have advanced distribution ERP systems that provide an easy solution for organizing your products and stock.

These modern software applications are capable to track stock movements, manage order processing, provide reports, and improve picking and packing.

Key Challenges Distributors Face

Distributors always play a critical role in the selling of goods, acting as the middlemen between producer and the consumers, ensuring that products manufactured reach the end-users, intact and on time.

The distribution process includes many stages and anomaly in any of those poses challenges in retaining the health of the business. Distributors very often find themselves stuck-up when they hold inventory to ensure their stock is available whenever their clients need them.

This inventory, if not managed properly, leaves distributors vulnerable to changing trends, price fluctuations and other economic turmoil. There are plenty of other challenges too that are affecting the industry on a large scale. These are:

  • Fast changing customer demands
  • Retailers expecting faster delivery
  • Lack of information sharing with suppliers and retailers
  • Data inaccuracy due to manual handling

Track your inventory with distribution ERP system

Inventory management is complicated, especially when dealing with unpredictable changes in the market conditions that could lead to surprising fluctuations in sales. You need a distribution ERP software to solve this and other common inventory issues. The system keeps track of accurate inventory data and helps you make better decisions.

Planning replenishment orders

ERP inventory management system helps you keep a tab on the stock movements. The application allows you predefine inventory levels for each product and set alerts so that whenever the stock reaches the limit, the system notifies you for replenishment. This helps you stay up-to-date about the demands, procure goods on time and always have the right quantity of inventory.

Manage surplus inventory

Whether the inventory leftover is caused by a ceasing demand or other external conditions, ERP inventory management software allows you to spotlight the surplus and react immediately. Delay in identifying might lead to moving the surplus to the trash pile and lose money that could have been saved by setting these goods out of the warehouse.

Increase business savings

ERP system improves inventory management. Better organization inventory quickens the pick-up process, which improves the efficiency and productivity in your stock room. More orders are processed. Your customer satisfaction goes up and along with it your revenue.

erp for distribution industry

How ERP Software Advantages Distribution Companies?

Appropriate ERP software has the potential to integrate various business operations and seamlessly manage them. In this next part, we’re going to find out how a distribution ERP system affects the processes and people involved.

Impart operation-wide visibility

Being unable to understand the product flows is one of the most experienced difficulties among the distribution companies.

ERP distribution software solves this. The system provides a comprehensive view of every step involved in the distribution process. It allows you to visualize the process that works effectively and spot the discrepancies. As a result, you will be able to implement measures to fix the issues faster and prevent any future problems for your business.

Increase efficiency of people and process

Accurate order processing and on-time delivery are made possible by efficient distribution software. The system empowers you to provide quality service to your customers, improve customer loyalty and become a profitable source of income.

The use of the system also reduces the workload of your staff. More organized operations increase the efficiency of your employees and give them the space to work on more productive areas.

Effective demand planning

Since ERP system offers organization-wide visibility, it allows you to access real-time and historical data. This helps you in predicting factors that could affect your distribution process and makes demand planning easier.

Further, better forecasting also prepares you for the emerging financial problems in advance and find ways to prevent them.

Accurate reporting

Distribution management ERP benefits you with more accurate reporting. Increased visibility is useful both in decision-making and compiling your data for generating accurate and timely reports. Thus, you can analyze and respond quickly to huge complex data.

Closing Thoughts

With an efficient distribution management system, you can easily make considerable improvements in business performance and foster growth without any added hassle.

Fill in the form to more on how our ERP software system could benefit your distribution business.

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