Distribution ERP System: Does your business need one?

distribution erp management

Blog Written By | ERPFocus

3 Signs your business needs a new distribution ERP

You turn the crank. The music plays. Suddenly, Jack pops out of the box. Once upon a time, things moved along in an orderly fashion to the expected conclusion. Business just isn’t that simple anymore and knowing when to replace your distribution ERP and upgrade your business systems is one of the complexities. Here are three sure-fire signs that your legacy distribution ERP is in need of an overhaul.

Frequent Inventory Shortages or Excess

Look around your warehouse. Are your shelves full but you rarely have the right products on hand to deliver the entire order? Distribution orders run on having the inventory the customer wants next and nothing more. A new distribution ERP can help achieve that goal.

Fast and efficient order entry allows checking of product availability immediately. On the shelf now? Available now, or has another customer asked for it? Distribution ERP will reply in a second. Not on the shelf? No problem. Where did you buy it last time? How long did it take to arrive? Is there a comparable product you have already that will satisfy the customer? Modern purchasing and supply chain tools will have an answer.

A good distribution ERP should work in reverse too. Too much on the shelf? Can you return it? Who bought it last? Maybe they want a few more still. It might be best to simply clear the shelf and make room for something that will sell. A new distribution ERP can help make those decisions and many others through accurate “inside-out” reporting.

Your Distribution ERP Stands Alone with No Integration

Modern technology of all types can help and today’s distribution ERP can connect to and use data from all of them. The big boys have conveyors and they fill boxes as they move along the line. The conveyor weighs the filled box and connects directly with the carrier system to prepare the shipping documents and get tracking numbers before the box is taped closed. That s integration. At the same time as the box is closed and signed-off for dispatch, the customer is charged through your ERP payment processor integration.

One more SKU is due this afternoon to complete that big, important order. Your inbound trucker carrying that item has already made an appointment for your dock to unload. Your new distribution ERP identified all the products on that truck, calculated the best dock and prepared a cross-dock movement of that last SKU so it gets on the outbound carrier with no delay.

Your Business Does Not Utilize E-Commerce

Allow customers to place their own orders and pay for them right away. The web portal links directly to your new distribution ERP so you can schedule a delivery or purchase the items desired. Even complex orders are handled with ease. You can deliver specific lots to fill the order. You can track the shelf life of your product to ensure your inventory is good and to provide maximum shelf life to your customer. Distribution ERP will also control inventory using FEFO or FIFO rules as needed for your business.

Distribution ERPs do not have to cost you a fortune anymore, with Microsoft’s standard Dynamics 365 Business Central and extended modules you can customize the system to suit your business needs at an affordable cost. Let allonline 365 help you solve those burning questions and help you digitally transform your business. Contact us on  +27 (21) 205 3650 or  info@allonline365.com.

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