This is done through data collection, graphical analysis and the tracking of physical movement.

Here are some of the basic tools often included in these systems:

• Financial reporting
• Inventory management
• Reporting and analytics
• Warehouse management
• Vendor relationship management
• Shipping and logistics
• Customer relationship management
• Sales order management

Track the physical location of materials and products

Distribution ERP often enables users to see the locations of their items and materials in real time through elements such as RFID tracking. This allows for the visualization of objects as they move throughout different warehouse processes and when searching for misplaced items. Some vendors offer the ability to see geographic locations through a map view or world view. This reduces misplaced items and, when coupled with a notification system, can even alert customers as to when to expect a delivery.

Streamline order processing

With distribution ERP, the process of entering and processing sales and purchase orders can be automated and facilitated more quickly. These tools help speed up the processing of transactions and often include standardized document formats to make the process of entering information easier than before. Here are some other order facilitation capabilities to look out for in distribution ERP systems:

• Order status retrieval
• Automated payments
• Automated order processing
• Return management
• Advanced shipping
• Self-service customer and vendor portals
• Order promising and inventory commitment

Optimize warehouse operations

There’s a huge variety of tasks occurring in a warehouse at any given time, and it can be difficult to ensure that you’re using all of your resources such as labor, machinery, and floor space in the most efficient way possible. Here are some of the warehouse management functions you might consider with distribution ERP:

• Shipping
• Kitting
• Inbound processing
• Outbound processing
• Container packing
• Pick-to-Light (PTL)

Predict inventory needs

Forecasting and demand planning tools give businesses a huge leg-up over their competitors. Some distribution ERP vendors offer planning tools to optimize workflows and reduce factors such as spoilage that can bog down a business. This is especially helpful when coupled with elements such as automated reordering of materials based on user-specified inventory levels. For example, if you predict that you will need 20 cases of toothbrushes in the next two weeks and it takes one week for them to arrive at your facility after placing an order, your system would create an order request in a week to meet the anticipated demand.

Communicate with business partners

Many distribution ERP systems include functionality that allows suppliers and vendors to communicate directly in a centralized location. This reduces transmission errors and ensures that company goals are aligned. Some programs include vendor relationship management functionality that enables users to build and maintain beneficial partnerships with other companies through reminders, shared visualizations and other capabilities.

Manage transportation

Some distribution ERP vendors enable users to visualize the location of vehicles in real time. This may also include a geographic interface that lays over the visualization to provide a more accurate and clearer view of the area in which your vehicles are located. Additionally, some programs include route planning features that determine the optimal driving directions for delivery drivers to get from point A to point B while using minimal gas and minimal time.

How Do I Select a Distribution ERP?

Choosing the correct distribution ERP for your business can greatly optimize your current operations. However, it’s important to keep in mind factors such as your company’s budget, current bottlenecks, and requirements when looking for the program that’s best for you. It can be difficult to determine if a distribution ERP vendor meets all of your needs, which is why we created this distribution ERP requirements checklist to help you keep track of what you’re looking for in a distribution ERP. Or, check out our comparison of some of the biggest names in the game when it comes to distribution ERP: IFS vs. SYSPRO.