ERP Systems
An integrated ERP system provides detailed business insights across all operations and delivers end-to-end visibility to improve company performance. ERP systems empower users with the tools needed for monitoring mission-critical information and business performance against key metrics using business intelligence tools like dashboard screens and key performance indicators (KPIs) like cash cycle—how quickly the business turns orders into cash, DSO (Days Sales Outstanding), levels of bad debt, and more.
An ERP system provides access to real-time inventory data to improve sales operations, make appropriate procurement decisions, and minimize costs associated with inventory—including inventory turns and the ability to identify redundant and slow-moving inventory.
Poorly integrated information systems are a major cause of delays and errors because data that is available in one system but isn’t available within other systems or manual processes like data re-entry cause delays. Integrated information systems improve execution and coordination with suppliers and customers and provide manufacturers and distributors with systems that ensures quick responses that make doing business easy and enjoyable for its trading partners. Some companies opt for ERP systems that integrate with supplier systems where additional benefits are improved coordination, and may incude preferential terms or improved access to information and resources.
An ERP system facilitates best practices.
Customer service improvements come from capturing best practices and building them into automated processes—delivering the information team members will need to manage service issues proactively and respond quickly to real-time customer needs. Automated workflows, designed to eliminate manual, error-prone data entry—ensure that no steps are missed during tasks, and to provide people with easy-to-use tools that reflect best practices and approved company procedures.
Enable management to take a strategic view using real-time access to current and historical data for analysis to identify new opportunities, model new scenarios, and build new business initiatives to win customers and market share.
Empower staff with a common set of business tools so they can focus on their specific role, using centralized, real-time data and processes.
Provide access to critical role-based data and customizable workflow tools that help people work more productively and make better decisions.
Eliminate silos of information and keep people across the organization up to date with information that’s relevant to their job so that all areas of the business are in sync.
Take advantage of embedded data and analysis tools that provide visibility into customer-level operating margins necessary for optimal allocation of resources, and to establish how much effort and cost should be invested in different product lines and market segments.
Facilitate improved customer interactions through easy to access complete customer histories and availability of information like pricing, item availability, or shipping status. An ERP system provides end-to-end customer visibility that allows an organization to deliver timely and accurate information.
Utilize system information to find patterns in customer needs and ordering and create special strategies, including focused and specific cross-selling and up-selling programs.
Integrated Customer Relationship Management (CRM) provides a complete customer view for managing and improving relationships and developing a better understanding customers’ past and future buying habits.
Integrated inventory management systems ensure stock-outs are avoided through effective management of inventory and supply chain logistics. As orders are captured, every new sale is taken on the basis of available inventory and products that have been “set aside” are not re-allocated in error to in-coming orders. Good inventory management means successfully working with trading partners to carefully plan and manage production and delivery lead times to ensure inventory levels are adequate.
Communications-enabling technology streamlines operations, reduces errors, speeds up manual processes and eliminates data-entry or other manual tasks that can have a negative impact on profitability. Integrated communications between order entry, order processing and warehouse enable efficient order-picking and returned goods management, and support time-saving activities like cross-docking and drop-shipping.
Real-time inventory information provides immediate visibility of inventory levels across multiple locations as well as on-order items and in-transit inventory and supports rapid ordering and accurate shipping processes. Centralized, real-time data and workflow automation ensures smooth, accurate handling of all shipment processes and paperwork.By capturing order information only once and automating subsequent processes, errors can be avoided and costs eliminated.
Tight integration with suppliers streamlines and automates procurement including support for stockless sales transactions—shipments to customers directly by supplier or partners.
Enable multi-channel sales through traditional channels like a reseller network, and Internet-based “e-business” channels.
e-Business (online) Channels.
Leapfrog ahead of competitors by taking advantage of the low-cost, always-on, platform-independent nature of e-business processes to better serve customers. When businesses have a strategic focus on e-business they power up their online sales channel with enabling technologies. Integrated web-based viewing of stock, stock availability inquiry, product comparisons, ordering, and delivery tracking are now an expected part of the total customer experience.
Traditional (offline) Channels.
Support for on-the-fly creation of collateral materials to support specific customers, buying groups, resellers, market segments or niches. Flexible publishing rules and integrated data from a centralized repository minimize waste, and the power of a database engine makes myriad configurations of products into catalogs, data sheets, and other forms of collateral available instantly for internal publishing, or in high-resolution for offset printing.
Value-added Customer Services.
Customer service is improved and costs are simultaneously reduced when contacts can be dealt with positively in a single interaction. Tasks like shipment tracking and tracing via the Web site of the logistics provider; processing of warranty claims and returned goods as a service to customers and in accordance with contractual obligations as set out by the manufacturer; and provision of field repair service, installation and training, can all be managed in a single interaction.
Product Information Management (PIM) – the ability to manage and maintain huge volumes of product information from multiple sources, each in its own format (electronic, print, pdf, data, image.) Product descriptions, pricing, configuration rules, availability, lead-times, package information, weight & measures, specifications, material safety data – for tens of thousands of products, all of which are subject to changes in attributes as products and entire lines become available or are discontinued by the manufacturer or master distributor.
Efficient Regulatory Compliance. Some industries —especially aerospace and automotive—suppliers are often required to meet certain compliance standards like ISO 9001. Companies who do business in, or export to, multiple countries are subject to a variety of different financial and regulatory requirements, including product labeling, or paperwork requirements for import/export activities.
Financial Performance.
Maximizing sales —up-selling, cross-selling and switch-selling, and making sure to include add-on items such as options and consumables that are frequently purchased together, or post- sales options such as installation, training, or service contracts—requires real-time access to information from multiple systems and processes.
Streamline supplier processes. Lean processes require tight integration with logistics partners. By incorporating system-level connections to trading partners immediate returns are realized through a reduction in communication gaps and order process latency, and faster identification of inventory overages and shortages.
Managing and Controlling Operational Costs
Improved operational efficiencies. Better understanding of operating margins, for example by division, business line, supplier, location, and customer. allows management to identify parts of the operation that are profitable and target areas where there is room for costs reduction and raising efficiency across the entire operation.
Optimized core processes. Buying, selling, ordering processing, order tracking, inventory management, are the core processes of a distributor. An efficient, integrated, and optimized business management system improves quality, timeliness, and costs, and that benefits the operation from the business office to the warehouse.
Learn more about ERP systems for mid-market industrial distribution companies.