Features to Look for when Choosing a Distribution ERP Software

Automate Inventory Planning and Deliver Orders On-time with Modern Distribution ERP Software

In the past, distributors had limited options for ERP solutions. The choices were either to rely on an entry-level accounting product and numerous plug-ins, or industry-specific applications with limited accounting functionality. Many that promised to do it all were too expensive and too hard to implement successfully. Here are the features and functions you'll want to consider when looking for your next Distribution ERP software.                                                                                                                                                                                                                                         

Features that Enable You to Compete

The lines are blurred between distribution, retail, and manufacturing. Modern distributors face complex and demanding supply chains with manufacturers selling direct to retailers or even direct to customers due to eCommerce integration. Evolutions in distribution and supply chain models are being observed industry-wide.

Monster companies like Amazon have been cutting distributors out of the process in many B2B markets. Mobility and automation impact every step in the supply chain with shorter cycle times and higher customer expectations.

Once a consumer-focused online retailer, Amazon has become the largest distributor of industrial products and a serious threat across distribution industries. As a result, distributors and wholesalers must rethink their go-to-market strategies and transform their businesses using modern technologies to keep up.

As the intermediary between the manufacturer of a product and another entity in the distribution supply chain, Distributors typically buy in smaller quantities and sell to retailers or other manufacturers. They generally do not sell to consumers directly but may provide a B2B commerce storefront. Make sure you find an ERP that supports:

• Will Call and Special Orders
• Kitting and Disassembly
• Barcoding and Light WMS
• B2B Commerce
• CRM Marketing and Sales

Whereas Wholesalers buy immense quantities of products from manufacturers and sell in bulk at lower prices. Wholesalers typically sell directly to consumers, unlike Distributors. Other Wholesalers coordinate with manufacturers, smaller distributors, and retailers to provide drop-ship services, storage, order fulfillment, and other outsourced services. ERP requirements for Wholesalers should include:

• B2B and B2C Commerce
• Service Management
• Warehouse Transfers
• Blanket Purchase Orders
• Advanced WMS Features

Acumatica Cloud ERP includes a robust set of business applications built on a modern technology platform. You can automate the management of every part of your Distribution business from accounting to inventory, purchasing to commerce, marketing to sales, and marketing to warehouse operations with the Acumatica Distribution Edition.

Choose the ERP Right for Your Products

Generally speaking, two main types of products are distributed: durable goods and nondurable goods. Durable goods, sometimes referred to as hard lines or hard goods, are items consumers usually purchase after three years because they tend to last a long time. Here are just a few examples of durable products:

• Appliances
• Housewares
• Jewelry
• Consumer electronics
• Furniture
• Automobiles

Nondurable goods are also called soft goods or soft lines. Nondurable goods are consumable within shorter time frames. Consumers purchase nondurable goods more frequently. Examples of nondurable goods include: 

• Cleaning supplies
• Clothing
• Paper products
• Food and beverages
• Health and beauty products

Acumatica helps your business evolve with Distribution ERP made for your industry. It's the leading choice for distributors of both durable and nondurable products due to its industry-specific features, including matrix items, lot and serial number tracking, kitting and disassembly, and first-expired-first-out picking based on expiration.

Find out more about what your Distribution business should look for in your next ERP with our Distribution Management System Evaluation Checklist. Download your copy here:

An Acumatica Partner Can Guide You

At Aqurus, we know how valuable Acumatica ERP software is for businesses – especially those in Distribution, eCommerce, and the retail industry. If you’re interested in how Acumatica’s Cloud ERP Software can boost your business, the Aqurus team is passionate about smooth implementation and ongoing support. Contact us today.