Customize Your "Best Fit" Software Comparison
  • Aerospace and Defense
  • Agriculture
  • Apparel and Textiles
  • Automotive
  • Building Materials and Products
  • Chemical
  • Consumer Packaged Goods (CPG)
  • Distribution
  • Electronics and High-Tech
  • Energy
  • Food and Beverage
  • HVAC
  • Industrial Machinery and Equipment
  • Lumber and Wood
  • Medical Device
  • Metal and Steel Fabrication
  • Mining and Quarrying
  • Oil and Gas
  • Other
  • Paper and Packaging
  • Pharmaceuticals and Biotechnology
  • Plastics and Rubber
  • Professional Services
  • Semiconductors
  • Ship Building and Marine
  • Transportation and Logistics
  • Additive Manufacturing
  • Configure To Order (CTO)
  • Discrete Manufacturing
  • Engineer to Order (ETO)
  • Industrial Distribution
  • Job Shop / Machine Shop
  • Light Assembly (ATO) / Kitting
  • Make to Order (MTO)
  • Mixed Mode Manufacturing
  • Process Manufacturing
  • Professional Services (Non-MFG)
  • Repetitive / Make to Stock
  • Wholesale Distribution
  • Under $1 Million
  • $1 to 10 Million
  • $11 to 50 Million
  • $51 to 100 Million
  • $101 to 500 Million
  • $500 Million to $1 Billion
  • Over $1 Billion
  • AI (Artificial Intelligence)
  • Barcoding
  • Cloud ERP
  • Ecommerce Integration
  • EDI (Electronic Data Interchange)
  • Hybrid Deployment (Cloud/Premise)
  • IBM DB2 Compatible
  • IoT (Direct Machine Integration)
  • KPIs (Knowledge Performance Indicators)
  • Lot Tracking
  • Mobile ERP
  • MS Azure Compatible
  • MS SQL Server
  • Multi-Tenant Architecture
  • NET Platform
  • On Premise
  • Progress Compatible
  • QuickBooks Compatible
  • SaaS (Software as a Service)
  • Salesforce Compatible
  • SOA (Service Oriented Architecture)

The Top ERP Systems for the Distribution Industry

Below is the most comprehensive comparison and guide to selecting from leading distribution ERP systems. Our side-by-side comparison of the top solutions makes it easy for you to understand the strengths and weaknesses of each platform based on your specific needs.

Our distribution ERP experts have done the research, allowing you to quickly identify the systems that best align with your requirements. You can then request free demos and obtain competitive pricing directly from the ERP vendors. Additionally, with our detailed selection guide, you'll be confident that you're making the smartest investment. Read our selection guide.

16 ERP Systems Found

Netsuite logo

NetSuite ERP

Vai logo

VAI S2K Enterprise

Acumatica logo

Acumatica Cloud ERP

Cetec erp logo

Cetec ERP

Datacor logo

Datacor ERP

Eci software logo

Deacom ERP

Aptean logo

Distribution ERP

Tgi logo

Enterprise 21 ERP

Ddi system logo

Inform Software

Sage Software Logo

Sage 300 Cloud

Sage Software Logo

Sage Intacct

Sap logo

SAP S/4HANA

Price Range

N/A

Price Range

$10K - $100K

Price Range

$25K - $250K

Price Range

$7.50K - $150K

Price Range

$3K - $40,000K

Price Range

$30K - $1,000K

Price Range

$50K - $800K

Price Range

N/A

Price Range

$30K - $75K

Price Range

$15K - $500K

Price Range

$70K - $1,000K

Price Range

$25K - $500K

Price Range

N/A

Price Range

$5K - $50K

Price Range

$15K - $30K

Price Range

N/A

Cost Per User

N/A

Cost Per User

$125/mo

Cost Per User

$175/mo

Cost Per User

N/A

Cost Per User

$40/mo

Cost Per User

$250/mo

Cost Per User

N/A

Cost Per User

N/A

Cost Per User

$5,000/mo

Cost Per User

$150/mo

Cost Per User

$200/mo

Cost Per User

$500/mo

Cost Per User

$175/mo

Cost Per User

$69/mo

Cost Per User

N/A

Cost Per User

$200/mo

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
No Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
No Icon On-Premise

Deployments

Yes Icon Cloud
No Icon On-Premise

Deployments

Yes Icon Cloud
Yes Icon On-Premise

Deployments

Yes Icon Cloud
No Icon On-Premise

Deployments

Yes Icon Cloud
No Icon On-Premise

Retention Rate

N/A

Retention Rate

N/A

Retention Rate

99%

Retention Rate

78%

Retention Rate

95%

Retention Rate

96%

Retention Rate

N/A

Retention Rate

94%

Retention Rate

N/A

Retention Rate

N/A

Retention Rate

N/A

Retention Rate

N/A

Retention Rate

91%

Retention Rate

92%

Retention Rate

95%

Retention Rate

78%

Version

-

Version

Release 2024.1

Version

6.2

Version

2024 R1

Version

Always Current

Version

2021

Version

17

Version

8.2

Version

8.1

Version

12.x

Version

Infor ERP Feature Pack 6

Version

20.0.63

Version

2021

Version

Continuous Deployment

Version

Always Current

Version

Cloud 2021

Financing Options

-

Financing Options

Subscription

Financing Options

Finance, Subscription

Financing Options

Subscription

Financing Options

Subscription

Financing Options

Lease, Subscription

Financing Options

Lease to Own

Financing Options

-

Financing Options

Subscription

Financing Options

Lease, Subscription

Financing Options

Lease

Financing Options

Lease, Subscription

Financing Options

Subscription

Financing Options

Lease, Subscription

Financing Options

Subscription

Financing Options

Subscription

User Range

1 — 1000

User Range

10 — unlimited

User Range

20 — Unlimited

User Range

5 — Unlimited

User Range

5 — Unlimited

User Range

5 — 1000

User Range

10 — 2000

User Range

10 — 250+

User Range

5 — 1000

User Range

10 — 1000

User Range

20 — 2,500

User Range

5 — 200

User Range

10 — Unlimited

User Range

1 — 1000

User Range

10 — Unlimited

User Range

15 — Unlimited

Minimum Fee to Implement

N/A

Minimum Fee to Implement

$10,000

Minimum Fee to Implement

$25,000

Minimum Fee to Implement

$10,000

Minimum Fee to Implement

$2,400

Minimum Fee to Implement

$15,000

Minimum Fee to Implement

N/A

Minimum Fee to Implement

N/A

Minimum Fee to Implement

$40,000

Minimum Fee to Implement

$15,000

Minimum Fee to Implement

N/A

Minimum Fee to Implement

N/A

Minimum Fee to Implement

$35,000

Minimum Fee to Implement

$10,000

Minimum Fee to Implement

N/A

Minimum Fee to Implement

$75,000

Awards

-

Awards

4

Awards

-

Awards

11

Awards

-

Awards

-

Awards

47

Awards

-

Awards

-

Awards

-

Awards

-

Awards

-

Awards

-

Awards

-

Awards

3

Awards

-

Installs

2500

Installs

37,000+

Installs

1000+

Installs

10000+

Installs

250+

Installs

>1000

Installs

200+

Installs

-

Installs

500+

Installs

800+

Installs

2800+

Installs

550+

Installs

2000+

Installs

40,000+

Installs

5,000+

Installs

10,000+

Architecture

-

Architecture

-

Architecture

Hosted Cloud, Single-tenant

Architecture

.NET, SaaS, Native Cloud

Architecture

SaaS

Architecture

SOA, .NET

Architecture

.NET

Architecture

-

Architecture

SOA

Architecture

SOA

Architecture

SOA, Multi-tenant

Architecture

.NET

Architecture

SOA, .NET, Native Cloud

Architecture

SOA, SaaS

Architecture

SOA, .NET, Hosted Cloud, SaaS, Single-tenant, Multi-tenant, Native Cloud

Architecture

SOA, Native Cloud

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • No Icon Production Management
  • No Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • No Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • No Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • No Icon Sales Order Management (SOM)
  • No Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • No Icon Multi-National
  • Yes Icon Financial Management
  • No Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • No Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • No Icon Production Management
  • No Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • No Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Core Features

  • Yes Icon Multi-Site
  • Yes Icon Multi-National
  • Yes Icon Financial Management
  • Yes Icon Production Management
  • Yes Icon Materials Management (MRP/BOM)
  • Yes Icon Sales Order Management (SOM)
  • Yes Icon Supply Chain Management (SCM)
  • Yes Icon Customer Relationship Management (CRM)

Unique Features

Epicor for distribution ERP software was built in partnership with thousands of successful distributors—and the deep expertise that comes from understanding their unique challenges.

  • End-to-end distribution software with industry-specific functionality
  • Comprehensive eCommerce that promotes online business growth
  • Modernize your sales approach and customer relationships

Unique Features

As a suite of cloud-based applications, NetSuite brings together all the systems that businesses need to grow, scale and adapt to change.

Unique Features

VAI is a single vendor that offers Cloud Hosting, ERP Software, and Support. It offers an enterprise-wide subscription that allows organizations to grow revenue, expand locations, and add users without paying additional software subscription fees. VAI provides experienced and direct support from the author, all based in the USA.

Unique Features

Unique consumption-based licensing provides flexibility and facilitates collaboration, enabling all employees and external parties to access information and systems to execute daily activities and long-term strategic goals. Acumatica is the only ERP vendor offering free online training via Acumatica Open University.

Acumatica's formal Customer Bill-Of-Rights, a unique commitment in the software industry, ensures fair and ethical treatment of customers and trading partners.

Unique Features

Cetec ERP is a single, unified business platform that delivers “tier 1” enterprise-level feature breadth at extraordinarily lower costs than traditional systems, owing to a long history combined with completely modernized cloud/SaaS technology. Their approach is direct, friendly, and transparent: they own the technology (i.e. no “bolt-ons”), and offer the software directly with no markup (i.e. not through incompetent third-party VARs), and offer close, attentive in-house support.

Unique Features

“Datacor ERP has tied all of the information we need into one centralized system. When we move an item in the wireless system, the information is immediately reflected across the platform. Our distribution and manufacturing operations are far more agile because we now know precisely what products we have or need, in what quantities and exactly where they are located.”

- Randy Byle | Haviland Enterprises, Inc.

Unique Features

As a comprehensive ERP platform with the industry’s largest functional foundation, Deacom ERP provides a rich set of capabilities designed specifically for growing process manufacturing and distribution businesses around the world. All functionality specific to these industries is developed and supported in-house and written into the core platform.

Unique Features

Aptean Distribution ERP (Enterprise Resource Planning) is an all-in-one system designed to handle everything consumer goods importers and distributors need to run and grow their business. By creating efficiencies across the enterprise, distributors will see increased profits and ensure that the entire business uses the same real-time data.

Unique Features

Unique Features

This system is designed specifically for Distribution Enterprises

Unique Features

Unique built-in process modeling tool for quick implementations and user setup

Unique Features

Unique Features

Unique Features

Unique Features

Gives you the agility you need to grow your business with a scalable, flexible, award-winning best-in-class cloud financial management system that comes complete with built-in industry-specific functionality.

Provides instant visibility into operational and financial insight through real-time dashboards and multi-dimensional analysis.

Unique Features

Limitations

This solution is not optimized for non-durable goods distributors.

Limitations

Limitations

Companies with revenue under 20 million that are not in the wholesale distribution, manufacturing, specialty retail, service and repair, or rental industries. 

Limitations

Acumatica is devoted to the midmarket. It is not a great fit for large enterprises in need of fully global support.


Limitations

Not ideal for service-based or retail businesses. No “HR” or “Payroll” inside the platform; requires integrating to a third-party payroll system.

Limitations

This product is not intended for discrete manufacturing or heavy distribution.

Limitations

Limitations

Limited to Distribution Enterprises, not suitable for complex manufacturing.

Limitations

Limitations

Not suitable for manufacturing.

Limitations

The Infor LN solution does not target process manufacturing companies with recipe and blending operations. The solution typically does not target financial or professional services firms such as banks, healthcare, and other service providers.


Limitations

Limitations

Limitations

Limitations

Does not have Materials Management and Production Management modules or other full scale Manufacturing features.

Limitations

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Distribution ERP Selection Guide

Updated On:

In this ERP selection guide we cover

Distribution erp guide

This guide is a roadmap for navigating the selection of Enterprise Resource Planning (ERP) systems specifically for the distribution industry.

We understand the distribution world is not just about moving goods from point A to point B.

It’s managing inventory, predicting demand, navigating regulations, and keeping everything running on time and budget.

It’s about late nights, early mornings, and the constant pressure to keep the wheels turning.

And through it all, a successful distribution business still needs to keep customers happy and the bottom line healthy. Over the last 15 years, we’ve put many distribution businesses on the path to finding their perfect ERP system and know firsthand how the right one can make your business much more efficient.

How ERP can address the top challenges facing Distribution

The distribution industry ensures the seamless flow of goods from manufacturers to end-users and is the backbone of successful business transactions. The industry encompasses a variety of operations, including, but not limited to, inventory management, order processing, and delivery management. With the continued demand for real-time data and the quest for optimized operations, specialized ERP software has become indispensable in this sector.

The majority of distribution businesses fall under these categories:

  • Wholesale distribution: Wholesale distributors purchase products in bulk from manufacturers and distribute them to retailers and other businesses, playing a crucial role in the supply chain.
  • Industrial distribution: Industrial distributors sell various products, including machinery, equipment, tools, and supplies, to businesses and organizations in the industrial sector.
  • Consumer goods distribution: Consumer goods distributors sell various products, including food and beverage, apparel, and electronics, to retailers and other businesses that sell directly to consumers.
  • Third-party logistics (3PL): Businesses can benefit from 3PL providers who offer logistics services such as warehousing, transportation, and order fulfillment. These services can help improve efficiency and reduce costs.

Regardless of which distribution category your business falls under, many common challenges face all distribution companies. Let’s outline these issues below and discuss how ERP can solve these challenges.

Key Pain Points in Distribution Processes

  1. Demand Volatility: The unpredictable shifts in demand pose a significant challenge, affecting inventory levels and operational planning.
  2. Complex Supply Chain Networks: Managing a multi-faceted supply chain with numerous stakeholders while ensuring timeliness and quality is daunting.
  3. Regulatory Compliance: Navigating through a maze of local and international regulations and ensuring compliance requires a robust monitoring system.
  4. Operational Efficiencies: Streamlining operations to reduce costs, improve delivery times, and enhance customer satisfaction is a constant challenge.
  5. Real-Time Data Accessibility: The necessity for real-time data for better decision-making and forecasting is paramount.
  6. Inventory Management: Efficiently managing inventory levels to prevent overstocking or stockouts is critical.

This is just a short list of woes that distributors face. Because distribution is a complex business process with many moving parts, it just makes sense that a powerful ERP system can keep things running smoothly and successfully.

How ERP addresses these issues and more

Implementing a suitable distribution ERP system is critical as it offers real-time data management and enhances supply chain coordination, which are features that are fundamental in improving efficiency and adapting swiftly to market shifts. But that’s just the start. There are many more benefits to these systems.

  • Demand Forecasting: Using historical data to predict demand accurately enables better inventory management and resource allocation.
  • Supply Chain Optimization: Providing tools for better coordination among suppliers, logistics, and customers, thus enhancing the overall supply chain efficiency.
  • Compliance Management: Offering modules that keep track of regulatory changes and ensure compliance, reducing the risk of legal repercussions.
  • Operational Analytics: Delivering real-time analytics to identify operational bottlenecks and areas of improvement.
  • Real-Time Data Integration: Integrating data across the organization in real-time, providing a unified view for better decision-making.
  • Inventory Control: Automating inventory control features to maintain optimal inventory levels, reduce carrying costs, and improve order fulfillment.

There are many more benefits, but overall, Distribution ERP solutions enhance operations, manage compliance, and facilitate data-driven decisions.

The Top ERP Systems for the Distribution Industry

The following ERP systems have been handpicked for suitability in the distribution industry. These leading contenders have demonstrated their ability to perform at the top level for distribution businesses.

Epicor for Distribution (Prophet 21)

Epicor's Prophet 21 ERP is tailored for distribution, integrating CRM, sales, finances, and supply chain. It boosts customer reach, streamlines digital operations, and enhances service offerings. Built on a modern tech stack, it offers both on-premise and Azure-powered cloud options, acclaimed for its robust cloud strategy.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User N/A
Price Range N/A
Retention Rate
N/A

NetSuite ERP

NetSuite ERP is a leading cloud-based solution for managing back-office operations and financial processes. It serves over 24,000 global customers and offers robust financial management, inventory, supply chain, and real-time analytics. This platform prioritizes innovation, growth, and swift decision-making through unified business insights.

Deployments
Yes Icon Cloud
No Icon On-Premise
Cost Per User $125/mo
Price Range $10K - $100K
Retention Rate
N/A

Acumatica Cloud ERP

Acumatica Cloud ERP is a versatile system tailored for growing businesses. It integrates accounting, sales, and customer management with industry-specific add-ons and advanced technologies like AI and IoT. With a user-friendly interface and global adaptability, Acumatica stands as a premier, affordable ERP solution.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User N/A
Price Range $7.50K - $150K
Retention Rate
78%

ERP Features & Requirements for Distribution

Discussing distribution ERP features and requirements is essentially delving into the day-to-day operations of a distribution business. It’s about the essential tools that ensure smooth functioning and the capacity to adapt and expand along with your business.

These aren’t just technical details. They’re the things that will make everyone’s job easier, inform better business decisions, and help the overall business be more successful.

Distribution Specific Software Requirements:

  1. Demand Forecasting: Ability to analyze historical data to predict future demand, helping optimize inventory management and resource allocation.
  2. Warehouse Management: Optimizing warehouse operations by efficiently handling inventory receiving, storage, picking, and shipping processes, ensuring accuracy and timeliness in order fulfillment.
  3. Real-Time Inventory Management: As part of warehouse management, a real-time snapshot of inventory levels helps avoid overstocking or stockouts.
  4. Order Processing Efficiency: Streamlining order processing from entry to delivery, ensuring timely and accurate order fulfillment.
  5. Supply Chain Visibility: Offering complete visibility across the supply chain facilitates better stakeholder coordination.
  6. Regulatory Compliance Management: Ensures adherence to industry regulations and standards, mitigating non-compliance risk.
  7. Real-Time Analytics and Reporting: Delivers actionable insights through real-time analytics, aiding in informed decision-making.
  8. Customer Relationship Management (CRM): Enhancing customer satisfaction by streamlining interactions and providing better service.

Distribution Specific Modules

  • Order Processing Module: Automates order entry, processing, and delivery management.
  • Supply Chain Management Module: Provides tools for supplier management, logistics coordination, and demand forecasting.
  • Compliance Management Module: Ensures adherence to regulatory standards and facilitates compliance reporting.
  • Analytics and Reporting Module: Offers real-time analytics, custom reporting, and dashboards for better decision-making.
  • Customer Relationship Management Module: Effectively manages customer interactions, complaints, and feedback.

Integration Capabilities

Integration with other software systems is critical for extending the functionality and streamlining operations in the distribution industry. Sometimes, these features may be part of the distribution ERP software, while others may require integration with separate platforms. Avoid ERP implementation failures by considering these before selecting your distribution ERP software.

  • Financial Software: Integrates with financial software for accurate financial reporting, budgeting, and forecasting.
  • E‑commerce Platforms: Connects with e‑commerce platforms to synchronize orders, inventory levels, and customer data.
  • Warehouse Management System (WMS): Integrates with WMS for advanced warehouse optimization, inventory control, and order fulfillment.
  • Logistics and Shipping Software: Facilitates seamless coordination with logistics and shipping software for efficient delivery management.
  • Human Resource Management Systems (HRMS): Streamlines human resource functions, including payroll, scheduling, and performance tracking.
  • Customer Support Platforms: Ensures synchronized customer communication regarding orders, deliveries, and support queries.

Ensure the must-have features of the distribution ERP system you choose are met by selecting from systems that have proven successful in the distribution sector.

Cloud ERP for Distribution

The distribution industry thrives on immediate data access, flexibility, and smooth communication throughout the supply chain. This is where cloud distribution ERP software is beneficial, offering a single unified platform that enables instant data sharing and decision-making, regardless of geographical or operational barriers.

Cloud ERP Benefits for Distribution Companies

  1. Real-Time Inventory Management: Cloud ERP systems offer real-time tracking of inventory levels, order statuses, and deliveries, vital for maintaining accuracy and meeting customer expectations in the distribution sector.
  2. Scalability: As distribution companies grow, the cloud can be scaled up to meet increased data and processing demands without a significant upfront investment.
  3. Cost-Effectiveness: With Cloud ERP, companies only pay for the resources they use, making it a cost-effective solution, especially for small to medium-sized distribution enterprises.
  4. Remote Access: Given the global distribution network span, remote access to the ERP system ensures that decisions can be made promptly, irrespective of location.
  5. Enhanced Collaboration: A cloud-based ERP solution facilitates better communication and collaboration between departments, suppliers, and customers by providing a unified information-sharing platform.
  6. Improved Compliance and Reporting: Meeting compliance standards and generating accurate reports is streamlined with cloud ERP’s automated data collection and reporting features.
  7. Data Security: Although the data is hosted off-site, reputable cloud ERP providers offer robust security protocols to protect sensitive business data.

Leading Cloud ERP Systems for Distribution

We recommend a few top cloud systems based on our knowledge of ERP and distribution companies’ needs. These systems are known for fully taking advantage of the benefits of Cloud ERP.

NetSuite ERP

NetSuite ERP is a leading cloud-based solution for managing back-office operations and financial processes. It serves over 24,000 global customers and offers robust financial management, inventory, supply chain, and real-time analytics. This platform prioritizes innovation, growth, and swift decision-making through unified business insights.

Deployments
Yes Icon Cloud
No Icon On-Premise
Cost Per User $125/mo
Price Range $10K - $100K
Retention Rate
N/A

Acumatica Cloud ERP

Acumatica Cloud ERP is a versatile system tailored for growing businesses. It integrates accounting, sales, and customer management with industry-specific add-ons and advanced technologies like AI and IoT. With a user-friendly interface and global adaptability, Acumatica stands as a premier, affordable ERP solution.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User N/A
Price Range $7.50K - $150K
Retention Rate
78%

Enterprise 21 ERP

Enterprise 21 ERP, by TGI, serves small to mid-sized manufacturers and distributors with integrated business solutions. It offers unique customization, eliminating the need for external modules. For manufacturers, it provides robust tracking and compliance features; for distributors, it enhances warehouse management. 

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User $5,000/mo
Price Range $30K - $75K
Retention Rate
N/A

Also, look at our Cloud ERP guide for a full picture of Cloud ERP topics.

Distribution ERP Software by Business Size

It’s crucial to align the system capabilities with the size and requirements of your business. Let’s look at the top systems tailored for various business scales within the distribution industry.

Distribution ERP Software for Small Businesses and Startups

Small businesses and startups in the distribution sector encounter unique challenges, including resource constraints and the need for efficient operations from the get-go and simplified implementation.

Revenue Range: Startup to $10 million.

Our Top ERP Recommendations for Small Distribution Businesses

Let’s look at some ERP software designed to address the sector’s peculiar challenges, offering a springboard for growth and sustainability. These systems are well suited to address the needs of a small but growing business.

NetSuite ERP

NetSuite ERP is a leading cloud-based solution for managing back-office operations and financial processes. It serves over 24,000 global customers and offers robust financial management, inventory, supply chain, and real-time analytics. This platform prioritizes innovation, growth, and swift decision-making through unified business insights.

Deployments
Yes Icon Cloud
No Icon On-Premise
Cost Per User $125/mo
Price Range $10K - $100K
Retention Rate
N/A

Cetec ERP

This affordable ERP offers world-class manufacturing management at an amazing price tag (just $40 per user per month when licensed as a SaaS). Some highlights of the cloud-based Cetec ERP are CRM and sales management, manufacturing quoting, inventory management, mobile warehousing, quality assurance and more.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User $40/mo
Price Range $3K - $40,000K
Retention Rate
95%

Specific ERP Requirements And Benefits For Small Distribution Businesses

  1. Cost Efficiency: Effective budget management with low upfront costs.
  2. User-Friendly Interface: Minimal learning curve to ensure quick adaptation.
  3. Inventory Management: Real-time tracking of inventory levels to prevent overstocking or stockouts.
  4. Order Processing: Streamlined order-to-cash process, ensuring accuracy and timeliness.
  5. Customer Relationship Management (CRM): Enhancing customer satisfaction through better service and interaction management.

Distribution ERP Systems for Medium-Sized Enterprises (SME)

As medium-sized distribution businesses gravitate towards broader market exposure, the complexity in operations follows suit.

Revenue Range: $10 million to $50 million.

Our Top ERP Recommendations for Medium-Sized Distribution Businesses

These distribution ERP system options emphasize scalability and advanced functionality to meet the growing demands of your operations for the next 5 to 10 years.

Epicor for Distribution (Prophet 21)

Epicor's Prophet 21 ERP is tailored for distribution, integrating CRM, sales, finances, and supply chain. It boosts customer reach, streamlines digital operations, and enhances service offerings. Built on a modern tech stack, it offers both on-premise and Azure-powered cloud options, acclaimed for its robust cloud strategy.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User N/A
Price Range N/A
Retention Rate
N/A

Acumatica Cloud ERP

Acumatica Cloud ERP is a versatile system tailored for growing businesses. It integrates accounting, sales, and customer management with industry-specific add-ons and advanced technologies like AI and IoT. With a user-friendly interface and global adaptability, Acumatica stands as a premier, affordable ERP solution.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User N/A
Price Range $7.50K - $150K
Retention Rate
78%

Distribution ERP

Aptean Distribution ERP streamlines consumer goods distribution with industry-tailored features like forecasting and compliance management. It boosts efficiency, reduces costs, and enhances customer satisfaction.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User N/A
Price Range N/A
Retention Rate
94%

Enterprise 21 ERP

Enterprise 21 ERP, by TGI, serves small to mid-sized manufacturers and distributors with integrated business solutions. It offers unique customization, eliminating the need for external modules. For manufacturers, it provides robust tracking and compliance features; for distributors, it enhances warehouse management. 

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User $5,000/mo
Price Range $30K - $75K
Retention Rate
N/A

ERP Requirements And Benefits For Medium-Sized Distribution Businesses

  1. Scalability: Ability to grow with the business without substantial additional investments.
  2. Advanced Analytics: Providing deeper insights for better decision-making.
  3. Integrated Financial Management: Consolidated financial data for accurate reporting and analysis.
  4. Supply Chain Management: Advanced tools for better coordination among the supply chain stakeholders.
  5. Regulatory Compliance: Ensuring adherence to industry standards and regulations.

Distribution ERP Systems for Large Corporations or Multinational Enterprises

Large distribution corporations or multinational enterprises operate in a more complex and demanding environment, necessitating robust and comprehensive ERP solutions.

Revenue Range: $50 million to over $1 billion.

Our Top ERP Recommendations for Large Distribution Businesses

The following systems cater to large distribution enterprises’ intricate global-scale operational demands.

Infor CloudSuite Distribution (Infor SX.e)

Infor Distribution SX.e is a specialized ERP for wholesale distributors. It streamlines sales to inventory operations, offers deep insights for quick decisions, and features a customizable interface. Supported by Infor OS, it emphasizes seamless integration, collaboration, and mobile accessibility.

Deployments
Yes Icon Cloud
Yes Icon On-Premise
Cost Per User $150/mo
Price Range $15K - $500K
Retention Rate
N/A

SAP S/4HANA

SAP S/4HANA Cloud is an ERP system for manufacturers with AI, machine learning, and analytics. It provides real-time insights into manufacturing processes, facilitates quick adjustments to demand changes, and enables better decision-making. The system supports seamless integration with other SAP solutions and is extendible for enterprise-wide processes.

Deployments
Yes Icon Cloud
No Icon On-Premise
Cost Per User $200/mo
Price Range N/A
Retention Rate
78%

ERP Requirements And Benefits For Large Distribution Businesses

  1. Global Operations Management: Tools for managing multinational operations, including currencies, languages, and legal compliance.
  2. Advanced Supply Chain Management: Real-time visibility and control over a complex, global supply chain.
  3. Business Intelligence: In-depth analytics and reporting for strategic decision-making.
  4. Enterprise Asset Management: Efficient management of physical assets and infrastructure.
  5. Customizability and Extensibility: Ability to tailor the system according to the specific needs and to integrate with other enterprise systems.

Cost of ERP for the Distribution Industry

Investing in an ERP system is a significant financial decision impacting various distribution business facets. Understanding the cost components and the value proposition they bring is crucial for making a good investment.

Here are some primary factors affecting distribution ERP software pricing:

  1. Software Licenses or Subscriptions: The core cost of the distribution ERP system is either a one-time purchase license or a recurring subscription fee.
  2. Customization: Tailoring the ERP system to meet the unique needs of your distribution business.
  3. Implementation Services: Costs associated with the selected ERP solution’s setup, configuration, and deployment.
  4. Data Migration: Transferring data from existing systems to the new ERP system.
  5. Training: Ensuring your team is proficient in ERP software, including onsite training or online courses.
  6. Support and Maintenance: Ongoing costs for support, updates, and maintenance of the ERP system.
  7. Integration: Linking the distribution ERP software with other software solutions in your organization, such as e‑commerce or logistics applications.
  8. Infrastructure: If opting for an on-premises solution, costs related to servers, storage, and network infrastructure would apply.
  9. Warehouse Optimization Modules: The distribution industry heavily relies on warehouse operations. ERP software with advanced warehouse management (such as wireless warehouse management) and optimization modules may incur additional costs.
  10. Transportation and Logistics Management: Specialized modules for managing transportation, logistics, and route planning are crucial for distribution businesses and may incur additional costs.
  11. Additional Modules: The cost of other modules or features not part of the core ERP system but essential for your distribution operations.

As we conclude this section, it’s important to remember that investing in a distribution enterprise resource planning system should be seen as a strategic investment that will yield substantial returns regarding increased profits and operational enhancements. It may take a few years to see a return on investment, but the rewards should be significant.

For a deeper dive into ERP costs and to better plan your investment, we encourage you to read our in-depth guide to ERP pricing. This will equip you with a comprehensive understanding of where costs come from and your options for optimizing them based on needs.

ERP Vendor Evaluation for the Distribution Industry

Selecting the right ERP vendor is a pivotal decision for distribution businesses.

Fortunately, you’ve come to the right place, as we feature only the best vendors and help you easily compare them.

Here are some crucial factors to consider while evaluating ERP vendors, specifically distribution:

  • Reputation: Investigate the vendor’s track record in the distribution industry. Look for testimonials, case studies, or references from other distribution companies they have worked with. A good reputation in the distribution sector is a positive indicator of their understanding and experience.
  • Customer Support: The complexity of distribution operations necessitates robust customer support. Check the vendor’s support team’s availability, responsiveness, and expertise in solving distribution-specific issues.
  • Vendor Viability: Evaluate the vendor’s financial stability and longevity in the market. It’s essential to have a vendor likely to remain in business for the long term, providing continuous support and updates.
  • Industry Expertise: Verify the vendor’s knowledge and experience in the distribution industry. They should understand the industry’s challenges, workflows, and compliance requirements. Be sure the system has helped other distribution businesses specifically.
  • Technological Advancements: Look for innovative vendors and keep up with the latest technologies like real-time analytics, AI, cloud computing, and mobile access, wireless management, which are becoming increasingly important in the distribution industry.
  • Vendor’s Compliance and Security Measures: Ensure that the vendor’s ERP system can assist your business in complying with industry regulations and that they have robust security measures to protect sensitive data.

Considering these points, you’ll be better positioned to pick an ERP vendor that meets your distribution business’s current needs and supports its success.

Distribution Industry ERP Implementation

Implementing an ERP system in the distribution sector requires understanding and a strategic approach. Here are some essential points to consider:

  • Data Migration: Ensuring accurate and seamless data migration is crucial to avoid discrepancies that could adversely impact inventory management, order processing, and financial reconciliation.
  • Customization: The ERP system should be customizable to accommodate varying distribution models, be it direct store delivery, cross-docking, or third-party logistics, aligning with the unique operational workflows of the business.
  • Integration: Achieving seamless integration with existing systems like Warehouse Management Systems (WMS), Transportation Management Systems (TMS), and Customer Relationship Management (CRM) is essential for real-time data exchange and enhanced operational efficiency.
  • User Training: Equipping the workforce with the necessary skills and knowledge to effectively utilize the ERP system is critical for leveraging its full potential in managing distribution operations.
  • Change Management: Addressing the human aspect of the ERP implementation, ensuring a smooth transition and acceptance of the new system, is critical to overcoming resistance and achieving project success.
  • Vendor Support: Having robust support from the ERP vendor to resolve industry-specific challenges, like managing returns or handling backorders, is invaluable for a smooth implementation and ongoing system optimization.
  • Process Re-engineering: Streamlining existing business processes to align with the capabilities and workflow of the ERP system can result in improved efficiency and more streamlined business operations.
  • Testing and Validation: Conducting thorough testing to validate the system’s readiness to handle high order volumes, seasonal demand variations, and other distribution-centric scenarios is imperative before going live.
  • Scalability: Ensuring the ERP system is scalable to accommodate business growth, expanding inventory, and increasing order volumes is crucial for long-term operational sustainability.
  • Performance Measurement: Establishing Key Performance Indicators (KPIs) like order accuracy, on-time delivery rates, and warehouse efficiency to measure the impact and return on investment of the ERP implementation.

During the ERP selection stage, it’s important to know what’s to come in the implementation stage. We have also written an ERP implementation guide that may be handy for you to refer back to at some point. 

Future Trends in ERP for Distribution

To keep pace with omnichannel demands and customer expectations, ERP systems for distribution must rapidly adopt new technologies and capabilities.

Emerging innovations shaping the future of ERP for distribution include:

  • Real-Time Analytics: With real-time analytics, distribution businesses can now make informed decisions on the fly. ERP systems increasingly offer real-time analytics features, enabling immediate insight into sales, inventory, and customer behavior trends.
  • Advanced Demand Forecasting: Modern ERP systems offer more sophisticated demand forecasting tools by leveraging historical data and real-time insights. This is crucial for distributors to track inventory levels efficiently, meet customer demands, and minimize carrying costs.
  • Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are integrated into ERP systems to improve forecasting, automate routine tasks, and enhance customer service through intelligent responses and actions.
  • Internet of Things (IoT): IoT technology is becoming a game-changer in inventory management and asset tracking. Connecting IoT devices to ERP systems allows for real-time data collection and analysis, aiding in efficient inventory management.
  • Dynamic Route Planning: For wholesale distributors, logistics is a core operation. ERP systems increasingly incorporate dynamic route planning tools that optimize delivery routes in real-time, considering traffic conditions, weather, and other variables, ensuring timely deliveries and reducing transportation costs.
  • Robotic Process Automation (RPA): RPA in ERP improves efficiency by automating repetitive tasks such as data entry, freeing human resources for more strategic, value-added tasks.
  • Vendor Managed Inventory (VMI) Capabilities: VMI is a collaborative strategy where vendors monitor and replenish the buyer’s inventory levels. Advanced ERP systems enhance VMI capabilities, facilitate better collaboration between distributors and suppliers, and ensure optimal inventory levels.
  • Sustainability Features: With a growing focus on sustainability, ERP systems are introducing features to track and manage carbon emissions, waste, and other sustainability metrics in distribution operations.

These emerging technologies and innovations set the stage for a more connected, efficient, and data-driven distribution industry, making integrating a modern ERP system a prudent investment for forward-thinking distribution enterprises.

ERP Case Studies in the Distribution Sector

Case studies show how ERP software can change business operations. We look at examples from the distribution sector to show how ERP systems have helped these businesses succeed.

  • Quality Material Handling, Inc. ERP Case Study: Quality Material Handling Inc. (QMH) upgraded to Acumatica Cloud ERP from Sage 100, leading to streamlined operations, improved inventory management, and real-time business insights. The transition facilitated remote work, reduced financial closing times, and supported QMH’s expansion goals by providing a scalable, user-friendly platform for better decision-making and customer service.
  • Endries International ERP Case Study: Endries International adopted Infor Distribution SX.e ERP to support growth, improve pick rates and inventory accuracy, and achieve their revenue goal of $100 million within five years. The system’s Total Warehouse Logistics and SCM Demand Planning modules further streamlined operations eliminated yearly inventory counts, and saved $500,000 in safety stock in one warehouse within a year.
  • Warshauer Electric Supply ERP Case Study: A family-owned business, Warshauer implemented Epicor Eclipse to address several pain points, such as reducing repetitive tasks. By automating repetitive job responsibilities, the system freed up employee time for brainstorming and problem-solving. Improving ticket tracking and digitalizing the warehouse have moved this business forward quickly, with improved sales growth and cost efficiencies.

FAQ Section for Distribution Industry ERP Buyers

This FAQ provides invaluable insights on ERP systems tailored for distribution industry leaders.vWhile each distributor will have unique priorities, these questions aim to illuminate how modern ERP can address common pain points and opportunities.

What is the significance of ERP in the Distribution Industry?

It’s clear now that Enterprise Resource Planning is crucial for distribution businesses. It unifies operational areas like order management, inventory control, supply chain management, delivery scheduling, and customer relationship management into one system. This integration allows for streamlined distribution processes, informed decision-making, improved efficiency, and cost reduction.

How can ERP support multi-warehouse operations?

An ERP system streamlines workflows, enhances inventory tracking, and provides comprehensive reporting across multiple warehouse locations. More sophisticated ERP systems also offer integration with Warehouse Management Systems (WMS) for superior automation and control capabilities.

How does an ERP system assist in regulatory compliance within the distribution industry?

ERP systems play a crucial role in aiding distribution businesses to adhere to industry regulations. They automate the tracking and reporting of compliance-related data, ensure precise record-keeping, facilitate product traceability, and uphold shipping and transportation regulations. By centralizing compliance information, they simplify the audit process, helping businesses stay updated with the fluctuating regulatory landscape, mitigating risks, and fostering a culture of compliance.

How does an ERP system improve inventory management in distribution?

An ERP system is critical for efficient inventory management in the distribution sector. ERP endows real-time monitoring of inventory levels, order statuses, and deliveries – an essential for maintaining optimal stock levels. Besides, advanced analytics and forecasting tools embedded within the ERP systems enable distributors to anticipate demand accurately, manage stock replenishment proficiently, and avert overstocking or stockout scenarios. This holistic approach significantly augments overall inventory efficiency and customer satisfaction.

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