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The Advantages of a Distribution Software Solution

Distribution Software
Matthew Hayhow

By Matthew Hayhow Web Journalist, Updated 17 May 2017

Distributors face a unique set of challenges in their business processes, including the movement of products through each stage of the distribution process as economically and efficiently as possible. This involves keeping up with a large number of transactions and stocks. Enterprise Resource Planning and Accounting Software specifically tailored for the distribution industry can help distributors a great deal at every step, from production to delivery. Here is a guide to the difficulties that organisations in the industry face, and the benefits that a distribution software solution can provide.

Industry Challenges

There are many stages in the distribution process, including purchasing, inventory, sales, delivery and retail. A major challenge is keeping all of these in-congruent disciplines functioning efficiently, tracking if anything goes wrong, and reducing as much unnecessary expenditure as possible.

Distribution companies have to take risks when they hold inventory, as their products have to be available as soon as their clients need them. This leaves distributors vulnerable to trends, price fluctuations and economic turmoil, and need to be able to respond quickly to market changes and internal problems. Managing the inventory is problematic within itself, as there are so many components that need to be supervised. Parts have to be sourced from different assembly centres and manufacturing companies, as well as reliable backups in case of emergency.

The Benefits of a Distribution Software Solution

The structure of ERP distribution software.

Visibility

One of the difficulties that distribution companies face is being able to see product flows in an easy to understand manner. ERP distribution software provides a comprehensive view of each step in the distribution process. This clear visualisation lets businesses see which parts of the process work effectively and which don’t, so that remedies can be easily implemented. This makes planning and forecasting easier, as businesses can use the software to use the real-time and historical data available to predict different factors that could affect the distribution process, such as changes to the supply chain, product demands and availability of parts. Better forecasting helps to streamline your business process, and can flag up any emerging financial problems in order to prevent them.

As well as making the business processes visible, distribution software can track parts in the supply chain through each step of the process. This makes it easier to spot any quality issues, and track them if they do occur. Distribution software can accommodate alarms which alert any quality issues. This results in higher quality products at lower cost as a result of malfunctions and flaws.

Businesses will also be able to use the software to spot any discrepancies between the inventory listing and actual number of stocks. This can circumvent major problems that record inconsistencies for transactions, deliveries, stocks and sales can cause. Malicious or illicit operations can be more easily perceived as well, again to prevent any future problems for your company.

Efficiency

It is now easier to arrange orders and deliver on time, or even in advance, thanks to distribution software. An efficient company will be more positively perceived by its customers, which in turn will make it more sought-after within the distribution industry.

Distribution software keeps customers happy by reducing time between order and delivery. The package and delivery of items becomes more accurate, as the exact number of items needed can be ordered in a specific amount of time. This leads to fewer mistakes that can result in increasing sales cost, or losing sales entirely. Providing customers with quality service will entice them to use your service again, which builds a quality client list, a profitable source of income.

As your business grows, your staff’s workload will increase, and you may need to take on new staff if you don’t have effective distribution software. As distribution software can manage this workload, your employee roster can be effectively maintained, as well as the workload of your staff, increasing workplace satisfaction and giving your employees space to work on other things.

Inventory Management

Distribution software improves the monitoring of stocks by automating inventory management. Item stock that is already used or delivered can then be filled up immediately, so that they can always supply the items requested from clients.

Costs

Distribution software can save an organisation a significant sum of money by removing the necessity of hiring staff to monitor transactions and stocks. ERP distribution software permits complete supply chain visibility, improved quality management, and more accurate forecasting and planning, improving the efficiency of a business’s processes, which leads to lower costs as well. If you are more aware of quality issues, this translates to less money being spent on maintenance and replacement parts.

Time Management

Not only do you save money, efficient business processes save time, which saves your business from wasting time on menial tasks that could be easily automated such as inventory and accounting, and allows you to focus on other areas that need more attention, such as improving a service or drawing out marketing campaigns.

Implementing distribution software can streamline your processes, saving you time and money, but there is still the problem of choosing the right software solution for you. As there are many different aspects to distribution, companies in the industry are varied in their core processes and ways in which they serve the customer. These varied companies require different kinds of software, with unique focuses, procedures and objectives, and it can cost your business a lot of time and money to find the solution that meets your requirements the most effectively. What if this could just be done with one simple phone call?

If you contact Software Advisory Service, we will provide non-chargeable IT buying advice. We can put together a shortlist of potential distribution software vendors depending on your organisation’s specific needs, and can arrange for them to call you back with no obligation to purchase anything. Simply complete your requirements here and we can provide you with the IT advice you need.

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