Did you know that having seamless workflows is crucial for successfully running a wholesale business? This is where understanding ERP for wholesalers comes in handy. Start off by understanding what is ERP, the ERP meaning, benefits of ERP, and ERP examples.
Smooth and seamless workflows include the processes of maintaining optimal levels of inventory through proper inventory management and warehouse organization. Aside from this, your workflow must also create strategic packing and distribution routes using route planning software and route optimization. Efficient staff allocation is also crucial.
These factors all contribute to the wholesale ERP process. Enterprise resource planning (ERP) software ensures a well-oiled operation and business as it streamlines purchasing costs and helps to efficiently allocate resources. ERP for is essential and this article will cover everything you need to know.
ERP for Wholesalers: 5 Benefits In the Wholesale Industry
Mastering ERP for wholesalers and wholesale food distributors comes with many benefits. The best ERP systems allow wholesalers and wholesale food distribution business owners to increase their visibility, nearly automate the demand planning process, improve their wholesale inventory management, and boost their reporting accuracy.
Here are 5 benefits of ERP implementation for wholesalers:
1. Improved Inventory Management
When looking into how to run a wholesale distribution business, you will quickly learn that inventory is the backbone of the industry. This is true for the food distribution business, alcohol distribution, and coffee distribution business, too.
Part of the ERP for wholesalers process is to ensure that businesses have the right amount of stock on hand when customers need it. This includes safety stock in case you run out unexpectedly. However, it’s not ideal to have stock sitting beyond your business’s typical sales cycle.
Such tools may have features such as inventory tracking and traceability. This will allow businesses to keep track of inventory throughout the shipping process, similar to the supply chain management process.
Without ERP for wholesalers, businesses often resort to manual processes. These are prone to errors, time-consuming, and are often tedious. ERP solutions allow wholesalers to improve their management processes, improve demand and inventory forecasting, and procurement. It can also be integrated with your wholesale ordering software.
Key takeaway: Wholesalers have the ability to streamline daily business operations with ERP software. This includes inventory management and supply chain management.
2. Enhanced Opportunity for Demand Planning
Having access to the real-time status of inventory makes it easier to plan ahead. Wholesalers are able to automatically replenish inventory levels through ERP systems. This is possible by enabling such systems to order inventory once stock levels reach a threshold amount.
It’s possible to look into previous data and plan ahead through inventory forecasting. ERP for wholesale distribution streamlines these processes and helps businesses plan for long-term growth.
3. In-Depth Visibility
Back-office operations are what keep any business running smoothly. ERP software provides in-depth visibility into operations such as production, finance, materials, human resources, and business planning.
When it comes to business success and restaurant success, both operational and profits and losses (P&L) visibility are must-haves. It’s what allows a business owner to make strategic and accurate decisions. ERP systems make it simple for businesses to access real-time data both on-site and remotely through the use of cloud technology.
Such visibility improves business productivity and enhances delivery schedules. It allows businesses to track what’s going on in the warehouse, at brick and mortar locations, and logistically.
4. Streamlined Supply Chain
Wholesale and distribution businesses specialize in the requisition of products, warehousing, managing inventory, picking and packing, and shipping and handling. ERP for wholesalers streamlines each of these processes through automation.
ERP automations include replenishing goods, indicating low stock levels, order tracking, and incoming and outgoing inventory management. This streamlines the entire supply chain, whether it’s the food and agricultural supply chain or another business industry.
5. Lower Operating Costs
Cost plays a central role in the profitability of a business. With improved workflows and processes through automation, businesses may increase their efficiency and productivity. This lowers their operating costs in turn.
Improved insights will result in better accuracy when it comes to inventory management and forecasting. It will also simplify your supply chain process.
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5 Components Your Wholesale ERP System Should Have
By now, you should understand that ERP for wholesalers is extremely beneficial. ERP wholesale software varies, so finding the right system for your business is essential.
A worthwhile ERP system should include these five functions:
- Customer Relationship Management (CRM)
- Financial management
- Business intelligence
- Human resource management
- Inventory management
These features and functions will allow you to run a smooth and efficient business.
1. Customer Relationship Management (CRM)
For most businesses, managing customers and leads is one of the top priorities. Without customers, a business will not be able to survive or grow. Having a CRM feature within your ERP system will help you keep track of customer and lead information.
This insight will allow you to optimize your sales and marketing efforts. CRM functions give businesses the ability to track customer buying histories. With this, they can utilize cross selling and upselling strategies to increase sales. Look into the upsell meaning to learn the difference between the two.
2. Financial Management
Businesses involve money in one way or another. Money is involved when paying for bulk shipping of wholesale orders and paying employees. This is why financial management is essential to have when it comes to ERP for wholesalers.
Financial management features of wholesale ERP systems will store and analyze business financial data. This may include costs, forecasts, budgets, accounts payable, and accounts receivable. In turn, you’ll have access to information regarding your spending to help you calculate profit trends.
3. Business Intelligence
These days, many businesses rely on data to thrive. With Business Intelligence (BI) features in your ERP system, you’ll have the opportunity to gather data and perform detailed analysis.
BI features connect company data from different departments and consolidate it for deeper analysis. This way, you have insight into all things related to your business, its products, and customers.
4. Human Resource Management
Employees are considered to be the foundation of most businesses. To ensure smooth operations, activities such as employee recruitment, onboarding, timekeeping, and payroll should be handled by the human resources module of your ERP software.
Allocating staff to perform payroll tasks manually is a time-consuming process. Doing so may also result in human error. However, HR features within ERP software will allow businesses to automate payments with proper benefits and tax deductions.
ERP for wholesalers streamlines the business processes and eliminates many manual processes. This improves accuracy and efficiency.
5. Inventory Management
Having an inventory management feature within your ERP software is essential, and it’s one of the inventory management tips businesses should follow. It goes hand in hand with supply chain management, sales, and warehousing.
Automating inventory management processes will reduce the amount of manual inventory control businesses have to do. Modern ERP software systems have inventory tracking features. These include multi-level serial number tracking, SKU number tracking, and UPC code tracking.
Another crucial function of inventory management features in ERP software is the ability to update out-of-stock inventory automatically on business websites. This will prevent customers from placing orders for products that are no longer in stock in your warehouse.
Frequently Asked Questions About the Benefits of ERP for Wholesalers
ERP for wholesalers streamlines the business process and improves operational efficiency. Whether you use ERP for wholesale distribution or for another business, it comes with many benefits. Here are some commonly asked questions regarding ERP systems and wholesale ERP:
Are you interested to learn about how to utilize ERP for wholesalers or in your B2B business? Download our B2B Business ebook today!
What Is ERP In Wholesale?
ERP in wholesale refers to both enterprise resource planning and a type of software that businesses use to complete daily business operations. Such operations include order procurement, accounting, project management, supply chain operations, and risk management and compliance.
This software streamlines business performance while increasing profitability. ERP for wholesalers is commonly used to manage multiple business functions within a single platform. Keep in mind not to confuse ERP with MRP. Look into "what is MRP?" for more clarification.
Why Do I Need ERP for My Wholesale Business?
Wholesale ERP software allows wholesalers to lower their operating costs and complete tasks in a more accurate and timely manner. ERP software also provides wholesalers with the option to accurately forecast expenses and income in order to budget effectively. ERP is the ideal kind of wholesale business software to succeed.
What Are the Benefits of ERP for Wholesalers?
The benefits of ERP for wholesalers include:
- Increased business visibility
- Improved inventory management
- Increased data reporting accuracy
- Automated workflows
- Improved demand planning
- Enhanced productivity
- Greater profitability