The challenges faced by distributors in today’s world are, in most ways, the same as they have always been; demanding customers and vendors require more service and support; inventory management is still an area of focus to reduce overhead while ensuring on-time order fulfillment; globalization continues to expand and increase the number of competitors, etc. While the challenges may remain the same, the investment in modern wholesale distribution software is changing, according to recent research from Aberdeen Group.
The report explored the growing need for distributors to change their processes and invest in technology in 2015. In fact, the study found that leading businesses in this market are investing in change and technology at twice the rate of their peers.
Why the increased investment in Wholesale Distribution Software?
By becoming more automated and integrated, leading distributors are more customer-focused and operationally prepared to deal with the increasing demands of customers and their higher expectations of complete and on-time orders. Below are some of the key findings from the February 2015 report, “What Has Changed in Wholesale Distribution: 2015 & Beyond”.
- Leaders are 3.3 times more likely to reduce costs by driving down excessive inventory and proactively responding to inbound and outbound customer events with technology that allows multi-party collaboration with suppliers, customers, and partners.
- The top 30% of companies have adopted advanced automation to synchronize their processes and better serve customers.
- Leaders are saying goodbye to manual processes by investing in automation at twice the rate of followers.
- Leaders are deploying solutions that give them integrated workflow and collaboration which increase timeliness and accuracy of their most critical data.
- Leaders are marrying analytics and optimization tools with collaboration technologies to develop supply chain and intelligence.
- Leaders are more engaged and have invested in mobility. In fact, up to 87% of leaders have a mobile solution now and 37% of all companies plan to invest in one within the next year.
Whether you are a small, medium, or large distributor, implementing wholesale distribution software and operating like the leaders mentioned in the report is not out of reach. Here are a few suggestions for companies researching their wholesale distribution ERP options:
Sage ERP X3 provides robust features for SMB and Enterprise organizations in single solution to manage perishable inventory, sophisticated picking and put-away strategies, ever-evolving standards for electronic data interchange (EDI), and much more.
Sage 500 ERP is another popular option for SMB’s and larger distributors featuring a best-in-class inventory replenishment system. Many distributors also choose to enhance their system with Sage 500 ERP distribution add-ons for even greater results.
Smaller distributors looking for the next-step-up from QuickBooks should consider Sage 100 ERP, with many features found in more expensive ERP systems but at a fraction of the cost.
Learn more about your Wholesale Distribution ERP options.