A minimal look at the area of wholesale distribution reveals a complex, constantly changing environment with difficult daily operational challenges that usually end up costing money to resolve. Because of this, wholesale distributors know that using well-designed software solutions will prevent some of these problems from occurring and, as a result, bring in huge benefits.

Wholesale Distribution Software

Is Wholesale Distribution Software necessary? Part II

Generic accounting software has been proven not to offer the sophisticated inventory tracking and pricing that distributors need. To overcome this, wholesalers often come to the conclusion they have no choice but to step up to ERP packages, which are designed for large companies which are often too complex, require extensive training and implementation, and are very expensive. So what is the right solution? Solutions to the problems encountered in the warehouse distribution business can be resolved using very specific software that streamlines business processes and provides better business intelligence just for wholesale distributors. A wholesale distributor’s tasks are exceptionally thorny to manage and without the aid of the proper software, the problems will only deepen.

Distribution businesses are not manufacturing businesses. Software solutions that help manufacturers will not take care of all the needs of a distributor.  Distributors, and particularly wholesale distributors, have to have more functionality than that provided by traditional ERP software. Many leading executives in this industry have a firm belief that a strong Supply Chain Management capability as well as Distribution Requirements Planning (DRP) to Support Multiple Distribution Centers and Warehouses are the paramount differences between traditional and Wholesale Distribution Software.

Rather than requiring production planning and product configuration capabilities, distribution companies require functionality that center on maintaining optimal inventory levels and on facilitating a swift transfer of products. That is why wholesale distribution software should include capabilities for advanced planning; merchandise importing and exporting; distribution planning; centralized purchasing environments; as well as multi-warehouse distribution channels.
Wholesale distribution companies have most of their finances involved in finished goods. For these businesses, visibility to vendor purchases as well as product costs for different vendors is crucial. Sales forecast is another tool that impacts distributors greatly due to such a high level of finished goods inventory. The import of products emphasizes the need for open communication with customers. Integrated and automated communication in the areas of EDI, advance ship notification, and order status updates is also very important.

Wholesale distribution companies need to maintain optimal inventory, facilitate movement of goods at optimum rates as quickly as possible, provide front office functionality, and deliver reports with data that will help improve performance. Therefore, wholesale distribution software has to offer more than the traditional features of ERP solutions; it has to be concerned with more extensive functionality.  

When selecting wholesale distribution software, companies are going to look for comprehensive solutions that offer high inventory turnover, robust purchasing, efficient import management, and an undeniable focus on customer relationship management. They require sophisticated features such as a complete warehouse management system that includes import, shipping, and delivery. More than that, wholesale distributor companies will additionally need robust supply chain management capabilities that can manage advanced planning for centralized purchasing environments, as well as multi-warehouse distribution channels.

Written by :

tracey boxer