How to choose the best ERP software for a distribution company

Choosing the best software for a distribution company can be one of the most difficult and important decisions. This is why at Fusionworks we want to guide you to the answer that gives you the most value for your money. We know that there are many technological solutions that can help you and before choosing one, you must be sure of the reason why you want this type of solution.

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Things to consider when choosing the best ERP software for distribution companiessoftware para las empresas de distribución

When choosing the best software for distribution and logistics companies, it is necessary to make a thorough assessment of the options available to the company. This is in order to find the most appropriate system to meet your objectives and enhance your operations. No matter how small your business is, it should not lack efficient supply chain management

Within the wide range of ERP solutions in the market, there are 3 that may be useful

1. Warehousing.
2. Global Trade
3. Transportation

You can also adapt a solution such as NetSuite, Oracle or Prophix according to your logistics and distribution needs by taking advantage of the versatility of the integrated modules of these platforms.

Choosing the right software starts with a clear vision of what you want to achieve through its implementation. First of all, you have to estimate which solutions are within the budget allocated for it and define with precision the reasons why you have made the determination to incorporate an ERP to your business model

The best selection for an optimized operation should come from consulting with supply chain experts. They will be in charge of telling you what you are doing right, what you can improve and what is not working. Furthermore, we would like to give you some suggestions to help you make an intelligent choice:

Compatibility

Sometimes you will be faced with the need to migrate to another platform to make your processes more efficient. With this in mind, it has become imperative to find a solution that is compatible with your current business model, as long as you have no intention of changing it. This way you ensure that the transition will be smooth and seamless

You may already be using some kind of resource management software to automate various processes. Even so, implementing software for distribution companies brings greater agility and efficiency to your operations. The more optimized your supply chain is, the more value you bring to your business relationships

Many hardware options

The evolution towards a 5.0 industry demands incorporating technologies like big data, IoT and IA to be one step ahead. When choosing a logistics program to improve chain supply, innovations are essential. These equipment and machines will facilitate the work of your staff and will be critical to your competitiveness in the market

When evaluating an ERP that facilitates the fulfillment of your goals, you should consider which technologies you can work with. There are already programs that allow two-way communication via Bluetooth, Wi-Fi, radio frequency and other ICTs. If you can incorporate devices with greater capabilities, you will have more opportunities to grow as you wish.

Proven versatility

A software for distribution companies with a great variety of functions and good reviews is useless if you can’t adjust it to your business model. Each company has its own specific operations due to its context, supply chain, established processes, business partners and a changing economic reality

A good option is Oracle’s WMS, a tool for warehouse and stock management that can be adapted to any commercial dynamics. Even if you already have a similar program, it helps to eliminate the shortcomings that each one may have. As long as you can improve the overall visibility of your business, you increase your adaptability

Remote assistance or on the cloud

Along with agile implementation, program updates are a critical point for continuous improvement. In your analysis of which alternative would be most effective, you should weigh which solutions give you the best support when experiencing problems or correcting bugs through timely new releases

It is also important to evaluate the type of service or warranty offered by the software you intend to incorporate. Most cloud SaaS offer you a monthly, annual or lifetime subscription. Depending on this, the allocated budget, and the quality you are looking for, you will choose the most convenient plan

Questions that can help you choose a good ERP for your supply chain

Before choosing a software for distribution companies for all that it offers, first you must clarify your business needs. To do this, answer the following questions:

How does your company react to change?

retos de la industria de la distribuciónThe crisis generated by covid 19 is a clear example of the value of good adaptation. When your supply chain is not flexible, you can suffer during these unforeseen events or even go out of business. 

Digital technology has helped empower companies to maintain their workforces without losing productivity. Your choice should be guided to make your business more resilient and less susceptible to change

What type of products are you going to distribute?

Every supply chain flows in accordance with the requirements derived from the commodity. While some businesses must manage multiple channels for their inventory, others must be more agile when handling perishable goods. This creates a significant operational difference that you must consider within the functionality of the system that you need

Which are your distribution channels

The questions of who you sell to and how you do it tells you what technology capabilities to invest in. Both your channels and customers add more contact points to the processes you already have. Therefore, the combination of actions and variable factors will bring more challenges to the automation system you seek

What are your growth goals?

The size of your business has several pain points that you must overcome to safeguard the ROI of each inventory cycle. You must also consider scalability when you plan to grow. If you decide to implement a solution that is too simple, you will be forced to replace it quickly to improve your functionality

We hope these recommendations will help you choose the best software for distribution companies according to your business model. If you still do not know where to start, at Fusionworks we offer you a demo for our ERP solutions according to the size and needs of your company.

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