One major benefit small-to-medium business (SMB) distributors have in using an enterprise resource planning (ERP) cloud solution is the ability to manage many core business areas in the same system. Financials and accounting, planning and budgeting, risk management, and procurement are all tied together to provide maximum insight and control over operations. But what about managing the other part of your business?
Purchasing a mishmash of solutions that keeps departments separated is like trying to run multiple businesses vs. just one. When the bridges between your cities are made up on email and spreadsheets, you encounter data errors (including both duplication and omission), have little/no visibility, and miss out on opportunities for higher-margin sales. An integrated ERP solution solves those problems; it can help improve customer engagement and loyalty as well.
Here are three scenarios where a completely integrated ERP Cloud solution can drive business performance and results for fast growing distributors and wholesalers:
Poor inventory management within the warehouse is one of the main reasons midsize distributors fail. Without the proper oversight, profit margins shrink as spend increases. Medium-sized distributors need to remain glued to that fine line between too much and too little inventory.
Your warehouse is not a standalone business; therefore, it should not be treated as one. When Warehouse Management Cloud (WMS) is connected to ERP Cloud, the fine line grows much broader. The two solutions working in tandem improve data accuracy. Once data is inputted into a system, the other is automatically updated. That would be music to the ears of the Atlanta charter school that lost $2.3 million thanks to one data-entry error.
In addition, decision makers have a clear picture of the supply chain with access to put away, good receipts, picking, replenishment, ordering, vendor returns, and reporting on physical and cycle counts.
One of the most common reasons why companies move to ERP Cloud is that their on-premises system cannot provide the functionality to support new pricing models, customer demands, or emerging technologies (machine learning or IoT anyone?) that are able to decipher trends and patterns for better, quicker decision making.
Medium-sized distributors need the competitive edge provided by flexible, scalable software. A modern ERP Cloud solution system provides that edge.
Employees need to have the information they require to successfully execute their job function. An integrated ERP Cloud can act as a central data repository, allowing (for example) customer service reps to upsell, offer product recommendations/alternatives, view credit and payment history, and/or locate the information they need, immediately, to answer customer inquiries.
Another key advantage to a system that acts as the single source of truth to the entire company is the ability for others to step into another employee’s role (as needed). The flu, a leave of absence, an unexpected resignation does not have to cause business to slow to a snail’s pace. Other employees can step in to complete daily, required activities since information was stored centrally and accessible to all.
At the end of the day, your growing business needs to constantly serve the ever-changing needs of your customers. An integrated ERP Cloud can transform your business (vs. just replacing another system) through streamlined processes, centralized back-office functions, support for new service offerings and pricing models, and a better understanding of profitable opportunities. ERP Cloud can be the driver of digital transformation.