Distribution ERP Software: 13 Must-Have ERP Features for Your Distribution Company

In the fast-paced world of distribution, having the right tools and systems in place is crucial for success. Implementing the right Distribution ERP software can dramatically improve your agility and profitability by optimizing your supply chain management from start to finish. But with so many ERP options available, how do you know which ERP systems to look at and what features to prioritize? In this article, we will delve into the 13 must-have features of Distribution ERP software that every distribution company needs to consider before making a purchase. From sales order management to warehouse and transportation management, we've got you covered.

Contents

1. Sales Order Management
2. Customer Relationship Management (CRM)
3. Purchase Order and Procurement Management
4. Warehouse and Transportation Management
5. Manufacturing
6. Inventory Management
7. Accounting and Financial Management
8. eCommerce
9. Supply Chain Management (SCM)
10. Logistics Management
11. Integrations and Extensibility
12. Mobile Capabilities
13. Reports, Dashboards, and Business Intelligence (BI)
14. Next Steps

Processing sales orders is a crucial operation for any distribution company. Distribution ERP software provides robust sales order management tools that automate and streamline the order processing workflow. These tools allow you to convert customer data into formal purchase orders seamlessly. With features such as omnichannel order entry, real-time order status updates, and order search capabilities, you can easily track and manage orders throughout their lifecycle. Other essential features include pricing management, product configurator, and returns management.

• Creating New Orders
• Custom Workflows for Sales Order Process
• Multiple Fulfillment or Order Splitting
• Multiple Payment Methods for a Return
• Omni-channel Order Receiving
• Order Search
• Pricing Management via Contract, Matrix, and More
• Product Configurator
• Purchase Order and Sales Order Linking
• Returns Management
• Track and Manage Chargebacks
• View Order History

Maintaining strong relationships with your customers is vital for the success of your distribution business. Most Distribution ERP systems offer extensive CRM functions that provide you with comprehensive insights into your customers. With features like automated emailing, lead and opportunity management, and loyalty program management, you can effectively manage your customer interactions and tailor your marketing campaigns to their specific needs.

• Automated Emailing
• Communication Logs
• Create and Track Marketing Campaigns
• Individual and Group Calendars
• Lead and Opportunity Management
• Loyalty Program Management
• Sales Commission Management
• Service Management
• Telemarketing Management
• Territory Management

Distribution ERP systems offer purchase order and procurement management tools that simplify the procurement process. They allow you to issue requisition requests, match purchase orders with accounts payable, and track supplier performance. Additional features include blanket orders, drop shipments, and a variance view between ordered and actual quantities.

• Blanket Orders
• Drop Shipments
• Landed Cost Tracking
• Purchase Audit Trail
• Purchase Order Approval Workflows
• Purchase Order Tracking
• Supplier Portal
• Variance View Between Ordered and Actual Quantities
• Vendor Master Data Management
• Vendor Selection and Performance Analysis

Effective management of your warehouse and transportation operations are key factors affecting your distribution business performance. Distribution ERP software includes warehouse management system (WMS) and transportation management system (TMS) functionalities that automate and optimize warehouse and transportation processes. This ensures accurate inventory data, streamlines the pick, pack, and ship processes, and provides visibility into transportation operations. Additional features include barcode scanning, cross-docking, and load planning.

• Barcode Scanning
• Bill of Lading (BoL)
• Carrier Management
• Container Management
• Cross Docking
• Generate and Print Shipping Labels
• Load Planning
• Multiple Warehouse Transfers
• Packing Picking Methods
• Put-away
• Quality Inspections and Checks
• Receiving
• Route Management
• Shipping
• Warehouse Slotting

For distributors involved in manufacturing processes, Distribution ERP software offers comprehensive manufacturing tools. These tools include bill of materials (BOMs) management, production planning and scheduling, cost management, and shop floor control. Whether you require full or partial product manufacturing, these features ensure smooth manufacturing operations within your distribution business.

• Bill of Materials
• Capacity Management
• Manufacturing Schedule
• MRP II
• Product Data Collection
• Quality Management
• Shop Floor Control
• Work Order Management
• Assembly Management
• Shop Floor Document Management

Efficient inventory management is essential for distributors to optimize their inventory levels and meet customer demands. Distribution ERP software provides robust inventory management tools that offer in-depth analysis of pipeline, demand, and manufacturing. These tools enable you to track inventory throughout your warehouse, assign serial numbers for product traceability, and manage multi-location inventory effectively. Additional features include cycle counting, demand forecasting, and vendor-managed inventory.

• Cycle Counting or Stock Counting
• Demand Forecasting
• Distribution Requirements Planning
• Inventory Replenishment
• Inventory Valuation
• Item Lookup
• Kitting and Dekitting
• License Plate Number Tracking
• Lot Number Tracking
• Manage Regulation Requirements (MSDS, FDA, etc.)
• Multi-location Inventory Tracking
• Multiple Units of Measure
• Reorder Point
• Serial Number Tracking
• Shelf Life Tracking and Expiration Dates
• Vendor-managed Inventory
• Warranty Tracking

Robust accounting and financial management capabilities are essential for the smooth operation of any distribution business. Distribution ERP software provides comprehensive accounting tools that enable you to manage accounts payable and receivable, reconcile bank statements, and generate financial reports. These tools support multiple tax regulations, currencies, and automatic calculations. Additional features include budgets vs actuals reports, fixed asset tracking, and payment methods management.

• Accounts Payable
• Accounts Receivable
• Bank Reconciliation
• Budgets vs Actuals Report
• Create Budgets
• Create Invoices
• Fixed Asset Tracking
• General Ledger
• Manage and Track Vendor Rebates
• Multi-company or Multi-entity
• Multi-currency
• Payment Methods
• Sales Tax Management

Distribution ERP offers eCommerce capabilities that enable you to establish an online storefront and provide a seamless shopping experience for your customers. These tools allow you to manage personalized and customized eCommerce websites, generate product recommendations, and provide real-time stock levels. Additional features include B2B self-service portals and online storefronts for popular platforms like eBay and Amazon.

• B2B Self-service portal
• Online Storefronts
• Personalized and Customized eCommerce Website
• Product Catalog Management
• Real-time Stock Levels
• View In-process Order Status

Efficient supply chain management is crucial for distributors to ensure smooth collaboration and communication with suppliers. Distribution ERP software provides robust supply chain management tools that enable you to track functions and items, plan and execute supply chain activities, and manage supplier relationships. These tools enhance visibility and eliminate information silos, ensuring a seamless flow of information throughout the supply chain.

• Supplier Relationship Management
• Transportation Management

Logistics management plays a vital role in the success of any distribution business. Distribution ERP software offers robust logistics management tools that enable you to plan, execute, and manage procedures for moving and storing goods. These tools optimize freight planning factors such as travel distance and route congestion, improve warehouse efficiency with 3D visualization, and provide total logistics cost modeling. Additional features include freight calculator, route planning, and load optimization.

• Total Logistics Cost Modeling
• Freight Calculator
• Route Planning

For a seamless workflow, integration with other systems and applications is crucial. Distribution ERP software offers comprehensive integration capabilities that enable you to merge your distribution software with accounting, CRM, EDI, and other solutions. These integrations streamline and centralize tasks, ensuring smooth data sharing and minimizing manual work. Additional features include API access and middleware software integration.

• Accounting Software Integration
• API Access
• Barcode Scanning Devices Integration
• CRM Software Integration
• EDI Software Integration
• ERP Software Integration
• HR and Payroll Software Integration
• iPaaS and Middleware Software Integration
• POS Software Integration

In today's mobile-driven world, having mobile capabilities is essential for staying connected and productive on the go. Distribution ERP software offers comprehensive mobile capabilities that enable you to access the platform from any location with a strong internet connection. These tools allow you to capture customer orders, check order status, replenish inventory, and view sales history, all from your mobile device. Additional features include mobile-optimized or responsive web design and native mobile applications.

• Capture Customer Orders in Mobile
• Check Order Status in Mobile
• Mobile Optimized or Responsive Web Design
• Mobile PO Receiving
• Native Mobile Application
• Replenish Inventory in Mobile
• Sales History in Mobile
• Tracking Inventory in Mobile
• View Customer Accounts and Invoices in Mobile

13. Reports, Dashboards, and Business Intelligence (BI)

Accurate and real-time data analysis is crucial for making informed business decisions. Distribution ERP software offers comprehensive reporting, dashboard, and business intelligence (BI) capabilities that enable you to monitor key performance indicators (KPIs), generate custom reports, and analyze data in multiple visualization styles. These tools provide you with valuable insights into your distribution operations, helping you identify trends, improve efficiency, and drive growth.

• Built-in Dashboards
• Custom Dashboards
• Customer Buying Trend Analytics
• Custom Reports
• Financial Reports
• KPI Scorecards
• Pre-built Reports
• Requisition Reports
• Role-based Dashboards
• Sales Representative Performance Metrics

14. Next Steps

Now that you have a comprehensive understanding of the top features of Distribution ERP software, you can start evaluating vendors to choose a solution that best fits your company's needs. Remember to consider your specific requirements and prioritize the features that will have the most significant impact on your operations. With the right Distribution ERP software in place, you can streamline your supply chain, enhance customer experiences, and achieve operational excellence. Use the free Distribution ERP Software Requirements Checklist below to save time, limit risk, and reduce the chance of missing key decision criteria.