In the wholesale and distribution industry, efficiency and accuracy are key factors. It is not surprising that 92% of wholesalers are shifting to Enterprise Resource Planning (ERP) software to automate their business operations and workflows. Such increasing popularity of ERP software reflects the significance of ERP in inventory and order management, customer relationship management, finance, and accounting in the industry.
Business Research Insights has estimated that the market value of ERP for wholesale will be USD 2.19 billion in 2024 and is expected to reach USD 4.93 billion by 2033 with a 9.5 percent CAGR in the market. However, the wholesale and distribution businesses have challenges in supply chain, inventory management, and rapid fulfillment of customers’ demand at the lowest possible costs.
This is where ERP systems assist wholesale businesses in managing their operations, including procurement and distribution processes, on a single centralized AI-powered platform. In this blog, we will explore wholesale and distribution ERP software and its impact on the industry.
What is Wholesale ERP Software?
Wholesale distribution software in an ERP, or a wholesale distribution ERP system, helps operate your wholesale distribution company. It automates purchasing, sales, inventory, and supply chain management, reducing manual work and improving efficiency. Further, it addresses the requirements of order, requisition, and inventory management.
Wholesale distribution applications provide business intelligence, analytics, financial management, and CRM capabilities. Unlike a generic inventory system, AI-powered wholesale ERP software does not require complex integrations with third-party applications. All the systems are centralized on a single AI-powered platform. This implies that you can easily get access to the information to enhance efficiency.
Why the Distribution Industry Uses Wholesale ERP
Distribution companies engage in inventory, supply chain, and customer needs daily. An ERP for wholesale makes these jobs easier and more efficient:
1. Controlling Inventory
If you have a warehouse or a series of warehouses across the globe, it is a complex task to control the inventory. It can be challenging to keep count of stocked items and inventory. However, with a wholesale distribution ERP system, you no longer play a guessing game with your inventory.
2. Commanding the Supply Chain
The supply chain challenges are increasing due to an unstable economy, price hikes, labor shortages, etc. This is why it is important to have proper shipping and delivery information. It helps in controlling your supply chain. However, ERP for wholesale distribution provides real-time updates of orders, delivery dates & inventory. This assists in identifying and addressing recurring issues and challenges.
3. Integrating Omnichannel Sales and Service
Nowadays, customers desire the most convenient shopping method, such as online, in-store, or via phone. This is referred to as omnichannel commerce. Therefore, wholesale software that manages e-commerce is essential to support customers during shopping. Customers should not get the seamless flow between virtual and traditional distribution.
4. Managing Financial Accounting and Analytics
ERP software for wholesale can handle general ledger, accounts receivable, accounts payable, cash management, tax management, currency management, and payroll management in finance. Moreover, it connects all parts of accounting into a centralized system. It offers various features of customizable reports, a dashboard, and data analysis.
Key Benefits of Wholesale ERP
The wholesale and distribution industry is complex and has a lot of data to manage. Therefore, an ERP system brings the following significant benefits to the distribution industry.
1. Better Management
ERP offers a centralized platform to control key processes of the wholesale and distribution industry, such as sales, inventory, finance, and customer data. This eliminates mistakes and streamlines the operations.
2. Real-time Visibility
Businesses also receive real-time updates on stock levels, sales, and order status with wholesale ERP software. It helps managers in making precise decisions.
3. Automate the process
Wholesale ERP software provides automation that eliminates repetitive tasks such as billing, order processing, and reporting, freeing up time so teams can focus on growth.
4. Increase Compliance
A distribution ERP system ensures that financial records, tax documents, and other industry-specific regulations are properly monitored and comply with relevant laws.
5. Optimize Resources
ERP helps in effective resource allocation from the workforce to warehouse space. It makes sure nothing is wasted.
6. Reduce Costs
A wholesale ERP system will reduce operational expenses and increase profitability by streamlining workflows and making them more efficient.
In addition to these advantages, Wholesale ERP offers many features that can prove valuable to distributors. Let’s learn the key modules of wholesale management software tailored to the wholesale and distribution industries.
Core Modules of Wholesale Software
Wholesale ERP has powerful features tailored to the distribution industry. It streamlines everything from inventory tracking to customer management. Understanding the following features helps in choosing the best wholesale management software.
- Sales & Purchase
- Inventory & Warehouse Management
- Supply Chain Management
- Finance & Accounting
- Customer Relationship Management (CRM)
- Admin & Security
Challenges in Implementing Wholesale Software
The implementation of a distribution software ERP can be beneficial, but it may also come with certain challenges. Here are the wholesale business challenges within the industry:
1. Data Management
Inventory, sales, and supply chain data can be quite difficult to manage in the wholesale and distribution industry. It is resolved with the data management features, such as data cleansing, standardization, and migration.
2. Integration
The integration of the ERP system with other tools, such as CRM, EDI, and WMS, is significant to get the desired output. Moreover, the integration is challenging, but an ERP solution should be able to integrate easily with other systems, APIs, and formats.
3. Customization
In some cases, businesses need to tailor their ERP system to fulfill their custom needs, including particular workflows, reporting, and automation. However, customization is time-consuming. Therefore, it is important to find a balance between customization and using the features of ERP software.
4. Cost
The implementation cost of a wholesale ERP software system can be steep, particularly in small and mid-sized businesses. Therefore, evaluate the cost-effectiveness and benefits of ERP systems that fit the organizational requirements and offer fair pricing arrangements, like pay-as-you-go and subscription.
5. Cybersecurity
As more wholesale and distribution organizations adopt cloud-based ERP systems, cybersecurity has become a serious threat. Businesses need to ensure that their ERP is secure and that confidential information is protected from cyberattacks.
Need a Smarter Way to Manage Distribution and Growth?
The wholesale and distribution industry faces constant challenges of managing inventory, supply chain, finances, and customer demands simultaneously. A wholesale ERP collects all functions under one platform, operating efficiently and cost-effectively. A great ERP provides wholesalers with better management, real-time visibility, automation, and compliance to scale and remain competitive.
Wholesale business is about finding the best ERP software. You are in the right place if you are looking for one. Sumato ERP offers a comprehensive Wholesync AI, which is an AI-based tool created specifically to fit the distribution and wholesale industry. It gives real-time stock visibility, enhances order performance, and develops a superior customer experience. Let’s switch to smart wholesale ERP software!
