Wholesale Distribution Business – Why Do You Need a Modern ERP System?

In today’s rapidly expanding wholesale distribution industry there are many challenges to be faced. Wholesale distributors must balance meeting fast-changing customer requirements and demands, growing and managing diverse and complex product inventories, dealing with fluctuations in the supply chain, monitoring and managing margins in the face of higher costs and reduced selling prices, addressing channel disintermediation, and many others.With modern ERP system software solutions providing a complete visibility across the full scope of distribution businesses promising companies are able to handle these challenges.

Modern ERP systems provide an immense value for the wholesale distribution business. A modern ERP  integrates all business processes of department functions and departments into one integrated system, and in this integrated system, different components of software and hardware take care of different business processes. An integrated distribution management system provides visibility and control over the supply chain management, purchase order management, warehouse management, inventory tracking, packing and shipping, eliminating the need for re-entering data between systems and reducing the possible risk of errors.

If you want to stay competitive in wholesale distribution business you need to be aware of the true availability and cost of the inventory from requisition through shipping, have detailed information on serial numbers, shelf life, and expiration, have accurate replenishment and distribution management planning, and on-hand balance in every warehouse and location – in real time.

Key ERP benefits for the wholesale distribution business

  • Business intelligence. Every modern wholesale distributor needs business intelligence understanding that success depends on the fact that it all relates to supply and demand. You need to have the right products at the right time in the right amount and at the right price. Business intelligence for wholesale distribution business provides companies with better visibility about their supply chain operations. Business intelligence gives a better understanding of market trends, providing a reliable foundation on which to predict future demand.
  • Accounting. You will be able to get complete visibility into the financial business activities, manage and optimise processes across major financial areas including accounts receivables, payables, credit card processing. You will be provided with tools for reporting, budgeting, analysis, and planning; you will be able to track daily financial transactions, create quarterly and annual financial statements, in a nutshell, take full control over your accounting and payroll.
  • eCommerce. eCommerce transactions flow directly into your back-office accounts increasing the profitability of unified ERP software systems that show the financial results of your business activities. You can gain more customers with eCommerce, fully integrated into your financial processes. Customers will be able to access their order history, view order status, track shipments, modify the order, and update shipping and payment information. You can provide customers with a simple way to pay outstanding invoices and request returns and refunds.
  • Visibility. Wholesale distribution industry requires tracking a wide range of activities or products in distribution networks. If you want to stay competitive, you should be mindful and have a complete picture of the entire organisation. With accurate real-time visibility improves business productivity and enhances delivery schedules.
  • Improved inventory management. With ERP software, you can get access to automated inventory management tools which facilitate paperless transactions and the ability to track shipped and purchased items in different warehouses. It will help to integrate technology, performance, and productivity with the company’s goals. With a systematic process for controlling inventory and achieving effective inventory management, you will be able to improve overall company’s operations.
  • Purchase order management. You can reduce costs and improve relationships with suppliers by automating and centrally managing your global purchasing processes. You will be able to automate complex procure-to-pay processes, which will include products and suppliers, create requisitions and approvals, convert to purchase orders, receive inventory, make invoices, match and pay.
  • Mobility. Mobile ERP is an enterprise resource planning system that can be accessed through mobile devices such as mobile phones and tablets. It is very important to find an ERP system that will provide fully integrated mobile functionality. Users typically access the system via the Internet using a standard browser or special mobile applications. The ability to access your business software remotely means that field staff and employees can record and enter data, no matter where they are, from the warehouse to the client site.
  • Pricing & shipping. Wholesale distributors often offer multiple prices for the same product based on the number of units, completion timeframe, and other discounts. So, finding an ERP software that provides pricing freedom for distributors is an important component in their decision-making process. With the help of a powerful pricing algorithm, customer specific pricing is easy enough for small businesses and wide enough for complex multinational corporations. It is very important to have shipments properly organised, and an ERP system will help you to improve overall shipping accuracy.


 Modern ERP systems are well within reach for all sizes of wholesale distribution businesses. Day by day they are continuing to gain great recognition and major approvals in the wholesale distribution industry.

As already mentioned, ERP systems provide an immense value for wholesale distribution businesses helping to manage orders for sales, pricing and shipping, allowing to optimise business processes so that all information is stored in one secure system. With accurate real-time information available in the secure location, issues that require attention can be instantly identified and resolved. Best ERP system for small business of wholesale distribution industry enables collaboration through information-sharing for smart decision-making.

Modern ERP software solutions help wholesale distributors to stay competitive providing accurate, company-wide inventory data and creating proactive, responsive replenishment operations and minimising inventory costs.

By implementing a well-designed ERP system for your wholesale distribution business, you will be able to improve stock management, accuracy of data, time management, customer and supplier relationships simultaneously providing true flexibility and scalability so critically important for your company’s growth.

Yaroslava Dubenska
Yaroslava Dubenska