Distribution ERP

ERP, which is the better known acronym for enterprise resource planning, is defined as software that enables and integrates business procedures in finance, manufacturing, distribution, sales, billing, human resources, and customer relations. Enterprise Resource Planning evolved naturally from inventory management software. As technology advanced, businesses continued to demand stronger applications, as well as the addition of more and more procedural functions into their ERP software.

Because companies in the manufacturing industry have to hold inventory, insure that goods are moved at the best possible rates, insure that they arrive on time, and support front office functions, they soon realized the benefit of software systems that contained distribution software functionality that would allow the manufacturer to manage everything that has to happen before a finished product is considered ready for delivery to a customer. The progression of products which occurred as the industry went back and forth with vendors and software designers, continuously expressing concerns and desires, soon enough led to the answer: Distribution ERP.

First and foremost, manufacturers and distributors have to deal with the warehousing and distribution functions within a business so that they can accomplish their main goal which is to be able to meet customers’ requirements by getting the right products to the right place, at the right time, and in the right condition. To that end, six separate fields have been documented as areas where a business can improve with Distribution ERP in a way that will help achieve the company’s strategic objectives: cut costs and increase profit.

The first field of improvement is: Operational Efficiency. Operational Efficiency can be surpassed with better scheduling, an effective suite of planning tools, controlled supply of raw materials and inventory, and employing EDI to collaborate with business partners and streamline the supply chain.

Second is Visibility into Operations. The ability to quickly and correctly answer questions such as: What stage has production reached? Where are the bottlenecks? Which cells are operating slower than expected? What resources are available in which team? What is the cost so far? -makes a business excel. To make effective decisions on the shop floor, it is necessary to have actual, real time production information.

The third field identified is simply Integration. Integrating the business system with product lifecycle and product data management applications is key to a smoother operation, as is integrating the system with shop floor equipment. Substantial savings in time and labor happen when passing production schedules and control programs to CNC and pick-and-place machinery.

Written by :

Amy Cruz