3 Main Components Required By Distribution ERP Software
Wholesalers and distributors are an important part of the distribution channel in forming a network between manufacturers and retailers. Unfortunately, even though both of these are very important for the entire supply chain process, they are rarely given attention by some ERP software vendors. Although there are now many distribution ERP software that can meet the needs of manufacturers and retailers, only a few are able to fulfill the needs in the wholesale and distribution industry.
Wholesale Business and Distributors
Wholesale and distribution are between manufacturers and retailers in a supply chain. Simply put, wholesale is a business that fulfills the enlargement of retailers by mass-buying goods or products from suppliers.
While distribution acts as an intermediary between manufacturers and retailers by providing additional services such as providing sales value for products, taking an active role in product sales and promotion and processing product returns.
But in reality, the line between wholesaler and distribution is not always clear, even the wholesalers also often provide distribution services and vice versa. That’s why many wholesaler companies call themselves “wholesale distributors”
3 key components that must be owned by the distribution ERP software
Manufacturing or retail ERP software usually does not cover the needs of wholesalers and also distribution because they need a wide range of functionality in some areas that are not include in the manufacturing and retail businesses software. Here are the 3 main components that must be owned by each distribution ERP software, namely:
Distribution Management Process
The distribution management process is divided into 6 parts, namely:
- Distribution Management Planning
- Sales Management
- Purchasing Management
- Quality Management
- Customer Relationship Management
Supply Chain Management
This process is a process of managing all business operations between suppliers, manufactures, wholesalers, distributors, retailers and customers. Distribution ERP software must be able to provide deep supply chain functionality and cover the following three areas, namely:
- Warehouse Management System (WMS)
- Transportation Management System
- Supplier Relationship Management
Back Office Operations
You must know that the following functionality is very common and necessary for business management. This function plays an important role so that you can run your business operations smoothly.
- Financial Application
- Accounting Application
- Human Resource
If your distribution ERP software has the three components above, you can be sure your business can run well. But if not, you can begin to consider replacing your software with a better one such as Acumatica Cloud ERP.
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