Technology and business are always changing, and staying at the forefront of those changes are what can set a company apart from the competition. ERP for distributors has changed dramatically in the last few years and there are some new trends emerging that represent a huge opportunity for distributors to make better decisions, improve services, and reduce costs. What are these growing trends?
- Cloud Services
- Business Intelligence
Let’s take a closer look at how these trends relate directly to the distribution industry.
Mobility: With mobile capabilities, employees are empowered with real-time, on-the-go access to all of the information they need such as pricing, quotes, open orders, credits, accounts receivable, and much more. With instant access to information, sales reps can be much more efficient and effective when they are out of the office. We’re not the first to push mobility and ERP, it is a hot topic right now but is mobility really a trend or just a buzz word? According to a survey by Modern Distributor Management, 45% of their many readers have implemented mobile tools in their organization and 29% of them have plans to do so in the near future. With so many people making moves to become mobile, you don’t want to be the only one stuck in the office.
Cloud Services: Distributors are always dealing with pressure to do things faster and do them cheaper, which is why the cloud is becoming more and more popular in this industry. According to the McKinsey Quarterly, cloud services are growing at a 17% annual rate among distributors so it’s only a matter of time before your trading partners make the move (if they have not already) and it’s important to keep up with them. Doing business where your partners and customers want to do business (on the cloud) will make you easier to work with and give them one more reason to work with you, not your competition. Beyond that, cloud ERP for distributors brings with it a number of other benefits including:
- Quick and easy access to your ERP information from anywhere, at any time.
- You can easily adopt new capabilities in the cloud as you find a need for them. This allows you to become more agile while keeping IT costs to a minimum.
- Lower total cost of ownership and faster integration when compared to on premise solutions
- Seamless upgrades provide you with more control over IT expenses
- Learn more about the need for modern ERP for distributors in this blog article.
Business Intelligence: Do you know which of your customers are most profitable? Do you know where you have opportunities to reduce costs? Why were your margins off this quarter? These are all common and critical questions and answering them will help you optimize your processes and improve your bottom line. ERP for distributors has built in business intelligence to provide greater visibility into operational data and provides predictive analytics enabling you to answer such questions and be proactive rather than reactive in your organization.
If you want to learn more about ERP for distributors and how to truly make it work for your company, download this white paper outlining a recent report from Aberdeen. The report discusses how top performers are utilizing their ERP systems, the amazing results they’re seeing, and how you can do the same.
What are your thoughts on these trends? Send us a tweet @e2bteknologies, we’d love to hear from you!