How to run a distribution company with ERP software?

The use of ERP for distribution companies, how to run it

The first thing to bear in mind is that ERP for distribution enables you to have a comprehensive control of the different departments. Most importantly, you will not have to repeat operations because they will be registered in all the modules you have signed up for.

It is true that distribution can have different scenarios. For example, the needs of food distribution may differ from those of retail, since in the latter case they are aimed at the retail customer.

ERP for distribution companies has to be usable by all the company's employees. In this respect, the tool must be intuitive so that it can be used by operators and managers alike. Today, password access systems that improve security are available.

In any case, the management of a company with specific ERP for distribution has to take into account the following aspects. Please note:

1. Stock control

Stock control is one of the key issues in a distribution company. Actually, we are talking about their main activity.

ERP allows you to know the status of the warehouse, but also the incoming and outgoing goods. In any case, the aim is to monitor the processes and avoid faults in the distribution chain. One of the advantages of current distribution ERPs is that they can be used on any device.

For example, traceability becomes a critical process. Stock has reception, storage period and dispatch. Monitoring the whole cycle lets you know where the potential problems are.

The use of this type of tool in terms of stocks will make your work easier. For this reason, you will want to keep them handy.

2. Financial management

Financial flows are a key issue in any company and automated tools allow you to find out what the exact situation is.

For example, thanks to ERP integrated with your bank accounts you will know their status. In the distribution sector, which operates on tight margins, this element is crucial. Fortunately, with a specialised tool, it will be easier for you to follow up.

Moreover, this department also monitors the status of payments and their dates, as well as collections. This is undoubtedly important if you want to monitor your cash flows. At the end of the day, the aim is to avoid cash flow tensions by not collecting when due.

The company's accounts are equally important for legal reasons. Current financial management modules allow you to make entries in real time in accordance with General Accounting Plan regulations. Therefore, when you want to draw up a balance sheet or a profit and loss account, you will have an easier time.

3. Expenditure and supplier management

Expenditure and supplier management is one of the key issues for all companies and distribution is no exception. ERP modules are adapted to purchases but also to the management of Human Resources.

The idea is that you can find out what the situation is at any given moment, knowing the previous purchases of suppliers and their volume. This is also the case when working with the staff. It is clear that having this information is essential in all negotiations.

Expenditure and supplier management is easy to control with ERP and it will show in your business.

4. Customer management

Customer management in distribution is one of the most complex areas, especially in sub-sectors such as courier services.

A CRM has several tools to make management more effective. On the one hand, the customer database with its corresponding history. Secondly, the average ticket and their preferences to improve marketing campaigns. In addition, you can find out the status of contracts. On the other hand, you will know whether customer service is being properly followed up. Finally, the status of your payments.

This information is decisive in all respects, but especially for the commercial or sales department. Good customer management brings value.

5. Regular reporting

Reports are important for two reasons. First, to find out what the actual status of your company is at a certain time. On the other hand, because this information allows you to plan ahead.

In times of Big Data, there is a greater use of data and, in this case, for good business management, it is necessary to know how to differentiate. That is why knowing how to generate quality reports is crucial.

What is the best software option for a distribution SME?

Distribution SMEs can opt for a solution that is becoming more widespread, the modular ERP. This allows you to choose and activate the areas you need at any given time.

What is the advantage? That if you have signed up for one module and later want to add another, the information will be integrated. And, as a result, you will save time and money in your company. Professionals with average computer skills will have no problem using ERP with some expert advice.

However, it is essential to have an experienced company in charge of the deployment. Specialised companies can study the case of your SME and propose the right solution. This, together with the support they will provide, will ease the transition.

Conclusion

The use of an ERP for distribution companies has to take into account certain criteria guidelines. And, of course, you need to have a supplier that provides you with reliable solutions. SEIDOR Business One provides ERP modules tailored to the needs of your distribution company.