An ERP or Enterprise Resource Planning system is a business management platform which is commonly used by manufacturing and distribution companies to collect, store, manage, and communicate data across all functions of the enterprise. However, ERP can be utilized by a number of different industries, such as those in healthcare, non-profit groups, construction, and hospitality.
An ERP system integrates information across various departments (product planning, development, human resources, manufacturing processes, sales, marketing, etc.) into one complete enterprise system which streamlines daily processes, automates common tasks, and allows data to be viewed in real-time.
While ERP software embodies a bold new vision for distribution and how distribution companies operate, it’s hard to determine the fine line between manufacturing and distribution. The two industries seem undeniably similar, from order to cash processes, to identification of potential customers, and supply chain management, they are very comparable. However, when you start to peel back the layers of a true distribution process, you’ll see a difference in order quantity and order volume. For example, small manufacturers typically deal with small orders, while small distributors deal with large orders and typically have a greater volume of orders to manage.
Distributors place bulk orders with a manufacturer and then sell smaller quantities to retail stores or end-user customers. Distributors handle the logistics and marketing requirements that manufacturers don’t want to or aren’t able to handle in house. Since the two verticals work in different areas of the supply chain, their technology must conform to different needs.
Typically, distributors will need more tools than a manufacturer, as they provide end-to-end solutions. Features such as fleet management, inventory management, marketing and shipping are all necessary for success. Additionally, a distribution specific ERP system is constructed with business intelligence and customer relationship management (CRM) capabilities in mind. This helps provide valuable insight into the customers’ buying habits and behaviors.
Regardless of your company size, an ERP system will streamline a variety of your daily business processes into a single database to give you a greater view and catch any potential issues.
From an economic standpoint, an ERP solution helps distributors keep track of pricing. Forecasting elasticity and pricing demands is virtually impossible to do manually, so an ERP is critical to staying competitive in the distribution market.
When you team up with ACC Software Solution’s premier team of consultants, you’ll receive a team of experts committed to following ERP best practices, from selection to end user training.
Find out why warehouse and distributor centers across the United States have come to us for over 25 years to execute their software projects—contact ACC Software Solutions today!
Solutions by Industry
What's New
Nonprofits Saved with Acumatica Cloud ERP
Download this customer success story to learn more Mozaic and their new strategy to save other nonprofits with Acumatica Cloud ERP. Read MoreSubmitted by Stephanie Dean on Thu, 06/01/23 - 5:00
Sage 100 version 2023
Sage 100 version 2023.0 offers over 40 new features and updates, designed to help simplify workflows, increase personal data security, and improve accuracy in decision-making. Read MoreSubmitted by Stephanie Dean on Thu, 05/25/23 - 5:00
Fashion, Apparel, & Footwear: Shoebacca
More Efficient Online Shoe Reseller Boosts Profits Thanks to Acumatica. Read MoreSubmitted by Stephanie Dean on Tue, 05/23/23 - 5:00