Small businesses often overlook the benefits of ERP software, as they may believe it is too complex or expensive for their needs. However, what they may not realize is that ERP software can streamline and optimize a wide range of business processes, such as inventory management and accounting. By strategically investing in the right technology and functions, small businesses can unlock new levels of efficiency and productivity, paving the way for future growth and success.
It is important to ensure you are seeking out a system that is well-suited to the industry and space you operate in. Let’s take a macro-level view and evaluate important ERP software modules for wholesale and distribution.
Financial Modules
For a business to grow sustainably, it is crucial to monitor their financial habits, which includes daily accounting practices. In the distribution sector, decisions on pricing and order quantities cannot be made lightly - they require careful analysis through financial modules that involve day-to-day accounting activities.
| Basic Accounting Modules | |
|---|---|
| ✓ | AR/AP (Accounts Receivable / Accounts Payable) |
| ✓ | General Ledger |
| ✓ | Bank Management |
| Important Accounting Modules | Tip | |
|---|---|---|
| ✓ | Contract Pricing | Streamline price lists and ensure consistency |
| ✓ | Landed Cost Tracking/Accruals | Accurately track the true costs of products |
| ✓ | Multi-Currency | Buy and sell product in multiple currencies |
| ✓ | Inter-Company Accounting | share product between two companies or warehouses |
| ✓ | Commissions Processing | Pay salespeople appropriately |
| ✓ | Job/Project Costing | Keep track of project costs to understand your ROI |
| ✓ | Vendor Payment Processing | pay suppliers and vendors on time and accurately |
Click here for more Advanced Accounting Modules
Inventory Modules
| Basic Inventory Modules | |
|---|---|
| ✓ | Order Entry & Invoicing |
| ✓ | Order Entry & Invoicing |
| ✓ | Return Merchandise Authorization (RMA) |
| Important Inventory Modules | Tip | |
|---|---|---|
| ✓ | Lot Tracking | great for regulated industries such as pharmaceuticals or food and beverage industries |
| ✓ | Warehouse Automation | including the use of barcode scanning |
| ✓ | Apparel/Product Matrix | for efficiently organizing a large number of similar products that require individual tracking. |
| ✓ | Multi-company and warehouse transfers | Share inventory between two “warehouses” |
| ✓ | Kitting and Bill of Materials (BOM) Support | To assist with the creation of kits without the need for manufacturing software |
| ✓ | Multiple Units of Measure | Buy and sell in different quantities with no issues |
Click here for more Advanced Inventory Modules
General Modules
| Basic General Modules | |
|---|---|
| ✓ | Contact Management (CRM) |
| ✓ | Commission Processing |
| ✓ | Backorder Management |
| Important General Modules | Tip | |
|---|---|---|
| ✓ | Point of Sale (POS) | many distributors like to open shop in the warehouse where customers can purchase product in a retail setting |
| ✓ | Warehouse Shipping | increase the efficiencies of shipping processes in the warehouse and link to shipping sites such as FedEx or UPS etc.) |
| ✓ | Webservices API - eCommerce Integration & EDI | Complete 2 way integrated for online selling and partnering with large corporations |
| ✓ | Automated Reporting & Analytics | Cut time and mistakes with automated reports delivered to the right mailbox |
Click here for more Modules/Components
When selecting ERP software for wholesale and distribution operations, it's crucial to consider a comprehensive list of functionalities that are tailored to the specific needs of distributors and wholesalers. The software should not only meet the requirements outlined in this list but also go above and beyond to ensure seamless and efficient operations.
