Streamline Purchasing Processes
ERP software allows businesses to manage all aspects of materials and product procurement, including vendor selection, contract negotiation, purchase requisitions and payments, inventory tracking, and order processing. With these processes streamlined, your company can also eliminate manual tasks, free up staff time for higher-value projects, and reduce costly errors and mistakes. A robust ERP system, such as Epicor for Distribution, has built-in capabilities for inventory tracking, including dynamic replenishment methods and inventory analytics, providing quick identification of products that may be running low by comparing actual real-time inventories against sales forecasts.
Efficient Management of Complex Supply Chain Networks
Many manufacturers and distributors rely heavily on third-party service providers (such as freight brokers, shippers, and carriers) who play an integral role in their operations and logistics. The problem for many companies is that these service providers often lack integrated operating systems, making it difficult to see where each element of the supply chain intersects. An ERP system can easily interface with these different components of your organization’s ecosystem. And because these interactions are logged into a central database, businesses can use data reporting to analyze key metrics such as landing costs, cycle counting and warehouse activities.
Increased Customer Service Levels
As discussed above, a poorly planned distribution network causes unnecessary delays in shipments, thereby reducing customer satisfaction. These problems get compounded because customers do not receive an accurate estimate of delivery times. When this happens, they complain about poor service and may avoid doing business with you again. With a comprehensive ERP solution, you can build online reporting tools that provide real-time visibility into shipment status. The integrated warehouse management system also helps optimize storage space based on forecasted demand.
Integration of Internal Business Processes
A world-class ERP system integrates seamlessly with other enterprise applications. For example, one of the most common integration points between manufacturing ERP systems and accounting software is invoicing. An ERP solution will allow you to automatically generate invoices from sales orders and send them directly to clients or vendors. It’s even possible to automate the process of receiving payment and sending refunds.
Navigating these uncertain times requires the most powerful business solutions. The right ERP system can not only lead distribution and manufacturing enterprises through the current supply chain crisis of 2021 and 2022, but these solutions can also assure strategic growth in the many years ahead when market forces are more predictable. While there’s no denying that there’s little you can do to change some of the factors causing the supply chain crunch, ERP systems provide results-proven solutions to rise above the storm and sail through the present challenges.
If you need help getting started or are looking for more information about how specific ERP solutions can help your business, please feel free to reach out to us today.