These are the benefits of an ERP for distribution companies

Logistics management is an intricate web of highly complex activities; it involves supply chain management, freight, transportation management, warehousing, storage, warehousing and much more. In addition, it is always susceptible to various changes, market uncertainties and cost fluctuations.

Small and medium-sized logistics and distribution businesses have a lot to do on a daily basis.

Fortunately, they now have ERP solutions that make everything much easier. Let's explore how an ERP for logistics can help distribution companies.

How to choose an ERP for distribution?

Choosing an ERP for distribution is an important step for any small or medium-sized business looking to aim for success. The functionalities and advantages offered by the system can mean a before and after in the way it operates on a daily basis; and of course, in the profitability of the business, because this platform will be in charge of having absolute control of the business and ensuring total coordination between the warehouse and the rest of the departments.

However, at the moment of choosing the ERP, leaders may find themselves confused among so many options available in the market.

Here is a summary of the main functionalities to consider when choosing an ERP in logistics:

It is important that the system is flexible and can adapt to the specifications or needs of your business and industry; in this case, the distribution business.

The ERP system should be able to optimize supply efficiency and order traceability. It is also important to look for a system with functionalities capable of connecting your customers, suppliers and employees as well as offering functionalities that include stock and warehouse management, inventory, etc. Complete visibility of the entire value chain, including financial indicators and reports, business intelligence tools and predefined KPIs.

ERP functionalities for distribution companies

The most important functionalities included in an ERP for distribution companies are:

Total supply chain management.

An ERP has functions with which the managers of distribution companies can manage the most important processes: planning, procurement, distribution and returns.

With these capabilities, your small or medium-sized business will be able to manage relationships and exchanges with customers and suppliers much more quickly, accurately and efficiently.

Inventory and stock control

We could say that the heart of retail or wholesale distribution companies is the warehouse, and for this reason, it is essential to have a system capable of controlling it in real time. This is exactly what an ERP system offers.

With such a system, businesses can control and automate all tasks associated with the warehouse, stock and inventories.

These capabilities enable your business to operate as large, distribute the product in a much more strategic way, offer much more competitive prices, etc.

Customer Relationship Management (CRM)

One of the most significant contributions that an ERP system can make to a distribution business is its CRM functionality, which allows agents to have a single platform from which they can obtain any data relating to customers at any time, and which also allows them to monitor marketing campaigns and commercial activity in general.

With CRM functionalities, your business will be able to offer an exceptional service to each customer and supplier, sell more and better, keep up to date with market trends, offer a friendly service and even give personality to your business.

Purchasing management

With an ERP for distribution companies it is possible to manage all the activities related to purchases: orders, prices, deliveries, etc. Everything you need to satisfy your customers' needs in one place.

Benefits of ERP for Distribution

Here are some of the benefits of implementing an ERP in the distribution industries:
  • Increased productivity and reduced human error due to process automation.
  • Improved communication and sales thanks to an integrated workflow.
  • Better customer shopping experience: faster service, accurate delivery and quick resolution of incidents.
  • Better decisions
What is the best ERP for distribution?

You probably already have a few logistics ERP system options in mind and are wondering, "Which is the best option for my business?"

Throughout our experience as ERP consultants in Mexico we have seen how small and medium businesses succeed in many ways and we can affirm that the best ERP for distribution is the one that:
  • Offers the right flexibility so that your business can work according to its needs.
  • Offers mobility and access from any device with Internet connection while being compatible with the most used browsers like Safari, Chrome, Firefox, Edge, etc.
  • It allows to integrate more applications such as Power BI, Dynamics, Outlook, etc. only in this way it is possible to expand innovation and development within the business.
  • It has partners around the world that back it up and offer support whenever you need it.
Are you ready to improve the operation of your distribution company? The wholesale, retail and distribution industry has entered an era of dramatic transformation. Today, approximately 92% of wholesalers and distributors are using ERP software for distribution.