5 Distributors And Wholesaler Pain Points An ERP System Solves

As businesses grow and become more successful, new pain points develop. The processes that worked well when your business is starting will soon be outdated by the time your business becomes stable. As your business continues to grow to the next level, those same processes you adopted previously will then nearly be antiquated. Why use an ERP system?

If your business has reached this point, an enterprise resource planning (ERP) system can help. An ERP system is a type of Business Management Software that can make running a small business more efficient and productive. It can resolve many of the pain points you’re business is dealing with.

5 Wholesale Distribution Pain Points An ERP System Can Solve

1. Warehouse Management Woes

For small business owners, warehouse management is a big problem. There’s just so much to keep track of. Orders can suddenly disappear, and you may not realize until customers call to complain. You may order more of a certain inventory item, only to discover you already had a lot of that item in another location.

This is one of many areas where an ERP system can help you manage. With a Warehouse Management System, you can see all your orders at a glance. You can pre-process the orders, and route orders to the right warehouse. You can also monitor your inventory count across multiple locations so you don’t accidentally make unnecessary orders. All these, real-time from an Enterprise Resource Planning (ERP) System.

2. Breakdowns in Communication

Have you experienced difficulties when there is no transparency between divisions or departments on the workflow process?

When you have multiple warehouses and distribution centers, it’s easy for communication to break down. By the time a message reaches you, it could already be inaccurate. Worse, you might not receive the messages at all.

An ERP system makes it easier for you, your employees, and your suppliers to stay on the same page and be aligned. For example, instead of having to call your suppliers to find out pricing information, you can just look up their pricing in a Sales Management ERP module. This would prove to be an extremely beneficial tool for your sales force to accommodate clients if there have real-time pricing and stock information.

3. Losing Money Due to Pricing Errors

If you manage your prices in a spreadsheet, you have probably lost money due to a pricing error before.

Nearly 90 percent of spreadsheets have errors. For example, you could accidentally type the wrong pricing formula in your spreadsheet. Customers could purchase your products at a too-low price and eat into your profit. In businesses with low-profit margins, like warehouses or distribution, these types of errors can cause big problems and go on to bigger losses if it is not rectified immediately.

An ERP will help you maintain accurate pricing in your warehouse. You can input customer-specific or segment-specific pricing. You can also set up promotional pricing or coupons in the ERP system. There are available features that could even help you calculate exchange rates, net conversions, and even discounts if you want to add this.

4. Workflow Issues

Workflow issues are a big problem in warehouses. For your business to succeed, workflows have to be fast and accurate. You can’t afford to have orders piling up or issues facing wrong processes. If orders aren’t sent out on time, customers could cancel, which costs you money.

An ERP system lets you smoothly manage your workflows. For example, you can use the system to fulfill orders in patches and jobs. You can tell the system the criteria you want to use for the waves, like the shipping method or priority. You can also allocate personnel in charge of it and provide a timeline for completion

5. Not Being Able to Work from Anywhere

Have you ever had to head back to work in the evening to check something like inventory, sales order, purchasing history or customer’s information? That’s annoying, especially if it happens often. Nearly one-third of small business owners are already working more than 50 hours a week. If you’re one of them, the last thing you need is to have to head back to the warehouse or office to check something on the computers.

With a cloud-based ERP platform, you can check in from anywhere at any time. All you need to do is log in to the ERP with your web browser of choice. Now you can even use your mobile device to log in. That means you can see how your warehouse operations are doing when you’re at home or on vacation. This makes managing your business much more convenient.

Now, this is an interesting aspect of it! With the new Mobile Sales system in an ERP system, you have all visibility of accessing real-time data, inventory, sales order, goods received and even delivery. All these aforementioned at the convenience of your mobile phone. That is what we mean by “anytime, anywhere”!


Zen Choo

Zen has worked in business software solutions since 2013. His expertise and knowledge are often called upon by colleagues and customers alike. He is passionate about sharing the benefits and values of implementing an ERP System for SME businesses. He has also consulted thousands of companies across Singapore and Malaysia. He has worked with some of the most well-known companies in Asia Pacific Region where he provided guidance on how best to leverage technology for business success. Zen specializes in Sharepoint implementation as well as dynamic CRM Online implementations - both are enterprise-level software solutions that help businesses grow their sales pipeline.

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