If you are running your processes manually or through disconnected systems, you will struggle to track your inventory, which results in inventory losses, missing opportunities due to product shortages, or meeting customer expectations with delivery.
If your processes are currently manual or use siloed systems, you will be spending a significant amount of time resolving discrepancies. You will plan based on inaccurate data, and the information can’t be real-time.
Without a global distribution ERP system that supports a multi-entity organization’s operations, your disconnected locations or warehouses might prevent you from getting a centralized view of your customers, vendors, and inventory.
If you are selling to a big retailer or an OEM, they will not work with you unless you have the capabilities to integrate with their systems. If your suppliers are equally larger, they might not do business with you if your processes are manual.
You may have been thinking of going direct to end customers and perhaps already developing an e-commerce channel. However, to provide the same service levels as your retailers, you need your e-commerce processes to be completely integrated with your distribution ERP system.
Warehouse efficiency drives the competitiveness of distributors. You need to implement efficient picking processes such as batch or ware picking, otherwise your customer lead time is likely to be higher. Without barcode readers, your manual methods will be highly slow and inefficient.
The disconnected and on-prem systems are likely to have lagged in receiving critical business information in the form of reports, and you need the help of your IT to get essential data.
Not all suppliers could be equally trustworthy. You need quality management processes while receiving the suppliers’ products to take appropriate corrective action for the material. These manual quality processes will slow down your procurement processes and may lead to financial losses.
With the rise of trends such as vending machines on the shop floors and retail locations, your manufacturer and retailer customers would want you to provide inventory in the JIT fashion on their premises without locking their cash. Managing a large number of vending machines is hard without an integrated ERP system.
Suppose you don’t have a distribution ERP system that supports advanced distribution processes such as Dropshipping, Consignment Warehouses, and Cross Docking. In that case, you will need to stock inventory levels unnecessarily, which will result in locked up cash in your inventory.
By connecting all your processes and streamlining them in one system, you can predictably commit and deliver to your customers. Without manual intervention, your customers will receive consistent experience through automated processes.
A modern distribution ERP system will provide you the end-to-end traceability, whether you need a consolidated view of your sales or operations or debug a KPI through the process. You may need this traceability for your internal tracking or regulatory bodies.
By eliminating manual and inefficient processes, you can lower the costs to produce your products, which will help you with reduced product costs, higher profit margin, and increased sales.
Through a modern distribution ERP system, you can plan your inventory and production better, which will help you plan your cash flow better. A distribution ERP system will also ensure due notices to your customers to collect your revenues timely.
By eliminating manual and inefficient processes, you can lower the costs to produce your products, which will help you with reduced product costs, higher profit margins, and increased sales.
Enabling lean processes is nearly impossible unless you have a distribution ERP system that can support lean processes that you desire to reduce excessive stock levels and optimizing the supply chain processes.