There are many different types of distribution software available. And, it goes without saying, every software vendor promotes their "distribution software" as the best model. This means it is definitely the responsibility of the business executives and managers to intelligently sift through the myriad of software vendors and choices, rather than just falling for a good sales pitch.

Wholesale Distribution Software

Is Wholesale Distribution Software necessary? Part III

A good evaluation of the software models will include analyzing the distribution business to outline core functions and taking a look at the ERP systems that are already in place to see if they can be made better or if it will be best for the company to simply replace them. Empirical evidence from the past ten years demonstrates that in most cases, implementation of warehouse distribution software will require the replacement of at least some of the existing systems.

In general, top of the line warehouse distribution software will contain four large fields of functionality or modules. To begin with, there is Warehouse Management. One vital need for distributors, particularly companies that send and receive a moderate to high volume of products from their warehouses, is to have efficiency in the warehouse. An efficient warehouse will save a company not only a lot of money, but a lot in terms of labor, storage, and transport. Almost always, the warehouse portion of a distribution software package includes shipping management, storage (container, pallet, sku, and space) functions, inventory tracking features, and stocking features.

The second important field can be termed Inventory Management. Centralized and effective inventory management is essential for businesses, especially after they have reached a critical point in their growth. What’s more, up to date inventory information needs to be easily accessible to people across the company and in quite a few different functional areas. Some key elements of the inventory management portion of distribution software are: inventory accounting (centralized inventory data), inventory planning, and purchasing.

The third of these fields is that of Customer Service and CRM. Usually, Distribution Software applications have incorporated at least some form of customer relationship management software. CRM software contains various forms of centralized pricing, order management, and sales force interaction. For companies that sell directly to end customers, the distribution software should also have connectivity to a web site, call center, or customer support functions.

Financial Management and Accounting is a good name for the fourth field of functionality of modules. A distribution software package should include some form of accounting software. This accounting functionality is particularly helpful since a distribution software implementation can cover multiple parts of a business and extend to numerous operations. And, although it is possible for this segment of the distribution software to vary a bit from company to company, the software should definitely allow the organization to do its accounting in a real-time, centralized manner with minimum manual intervention, and include functionality for accounts receivable, accounts payable, and ledger capability.

An accepted explanation of distribution software describes warehouse management and inventory management. Yet, the concept of distribution software is necessarily much broader and, to be truly effective, the software needs to be incorporated with changes in other areas of a company besides just the warehouse and logistics functions. There are other matters to be considered before making a warehouse distribution software purchase that will help a company make an unbiased choice when selecting which software vendor to go with.  Some of these matters are: ease of use; complete functionality; platform, cost, maintenance and support; installation, training, and legacy software systems.

Written by :

tracey boxer