If you are a distributor, what business are you really in? On a day-to-day level, your business sources product from suppliers, stores it until it’s sold, and then transports it to customers. In its essence, though, a distributor is in the money management business. You’re taking cash and turning it into inventory. Any operational or customer-related issues that further stretch out the payment for a sale is lowering your return on capital even more. If you borrow to finance a distribution business, you’ll understand this problem deeply.
But today, Distribution Cloud ERP software gives you new ways to cut costs and shorten the all-important cash cycle. Let’s discuss the most common challenges today’s distributors can solve with cloud ERP software solutions.
1. Get rid of Supply Chain Inefficiencies
Fulfilling customer orders with deliveries from suppliers can become troubled as distributors scale up operations. For-profits to be maximized, the flow of goods must be quick and accurate. Backorders, slow fulfillment, and poor customer service can doom even the most established business with competitors ready to pounce. Cloud ERP enables distributors to manage workflows with ease and control. Intuitive dashboards allow employees to fill orders according to specific pre-determined criteria – priority level, shipping method, preferred carriers, and more. Supplier portals based on Kanban methodologies can help restock popular items in advance before they sell out.
2. Reduce order times
Automated sales order processing, which is available in Cloud ERP solutions, eliminates delays in order fulfillment and shipping. The suite usually also enables you to set up rules to handle credit, returns, drop shipments, and so forth across multiple warehouses.
3. Increase in Profit Margins
Wholesale distributors understand that streamlining operations and executing error-free fulfillment is critical to preserving the profits earned on each sale. Mistakes returns and backorder scenarios can eat into already razor-thin margins. Distributors using Excel spreadsheets or QuickBooks often lose money due to pricing errors when formulas are mistyped, causing merchandise to be inadvertently sold at a loss. Distribution Cloud ERP software that unifies cross-departmental data are able to maintain correct pricing across the entire business at all times.
4. Run an efficient warehouse
The more efficiently your warehouse(s) run, the more profitable your distribution business will be. A Warehouse Management System, which comes with many modern ERP suites, lets you streamline your distribution processes. The system covers workflows across receiving and inventory management as well as the operation of tools like barcode scanners and mobile devices.
5. Enhances Remote Work Capability
Over the last decade, Cloud ERP technology has enabled more and more businesses to allow employees to work remotely, or to let key managers access vital systems from anywhere in the world. On vacation? Want to check on orders before bedtime? On the road to meet a new supplier? Distribution Cloud ERP systems allow distributors to check-in and work from anywhere, at any time. All that’s required is an internet connection and a web browser or mobile device. The recent pandemic has made the ability for distributors and their employees to work remotely even more critical and will become the norm in the years ahead.
6. 24/7 Employee Communication
With employees utilizing phone, email, texts, and instant messages across multiple warehouses and distribution centers, distributors are often faced with the challenge of employee miscommunication. Having a single source of an order or item can be achieved with a modern Cloud ERP system. Why call suppliers about pricing when this can be easily looked up within the system? The Cloud ERP serves as the single place where all documents, customer interactions, and product information can be easily pulled up and shared without the need to pick up a phone.
Averiware Distribution Cloud ERP Software gives you full business control over your supply chain and logistics activities, including warehouse management, inventory management, and order management. Built-in the cloud and customized for your needs, Averiware helps companies improve customer satisfaction, reduce order times, and control costs across the entire supply and distribution chain.
