Top 3 Challenges Facing Distributors and How ERP Solves Them

Challenge 1: Inventory/Stock Management

Ending up with excess inventory, low inventory, or a complete stock-out is detrimental to any distributing business. Distributors rely on consumers to maintain an average sell rate. A variety of factors can affect this, including economic conditions. Supply chain management issues can affect a company’s profit margin. An ERP system mitigates this problem with an integrated warehouse management system (WMS) that can automate a variety of operations.

Acumatica’s Cloud ERP solution:

Acumatica incorporates a WMS that streamlines distribution processes. It helps with inventory management, receiving and order fulfillment. At the same time, integration with barcode scanners and mobile devices help improve process efficiency, reduce costs and increase customer satisfaction. A WMS can aid in physical inventory counts, picking, compliance labeling and other key tasks.

Challenge 2: Importing/Exporting

In recent years, manufacturers have been moving facilities back to the United States to address the cost concerns associated with overseas production and importing goods. Operating domestically can help businesses consolidate the supply chain and reduce shipping costs, but making such a move has challenges. Without a clear view into financials, shipments, inventory and manufacturing processes, it can be difficult to remain cost effective.

Acumatica’s Cloud ERP solution:

An ERP solution provides full visibility into these metrics from a single location. No matter how complex your business and its processes are, Acumatica provides financial management (with sub-account support and automatic revenue recognition) and simplifies complex distribution processes, even for businesses with multiple products and suppliers. Order fulfillment, purchase management and quote generation can be managed to meet both internal and customer needs.

Challenge 3: Data Error/Redundancy

When different software applications are used, there is a high risk of human error and data repetition, which can make a distribution business inefficient. Re-entering data can take up time and interfere with important processes and revenue-generating opportunities. Repetitive information can cause confusion, increase order times and disrupt materials purchasing and order fulfillment.

Acumatica’s Cloud ERP solution:

An ERP like Acumatica provides complete visibility into a distribution business, its procedures and operations. Acumatica stores data centrally. Accessible via a web browser, it presents information that’s updated in real time. Real-time profitability can be viewed by warehouse down to individual product lines and locations. You can therefore control costs across the supply chain and automate everything from sales orders to the entire purchasing process.

Additional Distribution ERP Resources

Best Practices for Implementing Distribution ERP Software How Distribution Firms Can Use KPIs to Improve Performance and Grow How to Find True Cloud Software For Distributors

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