ERP in Wholesale and Distribution: A Logical Solution to Logistical Challenges
holesalers and distributors need to keep track of a large amount of frequently updating data as well accurate planning that will keep the organization running on-schedule without increased costs. This is becoming exponentially difficult in today’s environment as organizations take orders from an increasing amount of channels (online, in store, call center, etc.) and deliver those orders through multiple third parties. In other words, wholesalers and distributors must accurately predict demand and provide products to customers when they need them at a low price, no matter how the order is taken or delivered. As a result, the majority of wholesalers and distributors rely on Enterprise Resource Planning (ERP) as a hub for customer
Methodology The Aberdeen maturity class is comprised of three groups of survey respondents. Classified by their self-reported performance across several key metrics, each respondent falls into one of three categories: •
Best-in-Class: Top 20% of respondents based on performance
Industry Average: Middle 50% of respondents based on performance
Laggard: Bottom 30% of respondents based on performance
Sometimes we refer to a fourth category, All Others, which is Industry Average and Laggard combined.
information and inventory management. But ERP is much more than that. ERP is the operational and transactional system of record upon which a business is based. It provides visibility to decision-makers and can help to promote process standards throughout the organization, in support of continuous improvement. This report, based on a survey of 95 wholesalers and distributors, examines their needs for ERP, as well as the benefits that top-performing organizations receive as a result of their ERP solution.
Sage ERP X3 drives growth with visibility and velocity Sage ERP X3, a flexible business management solution by Sage, helps distributors around the world improve productivity and free up capital for investments to modernize operations or enter new markets while ensuring the best quality of products and service to customers. Sage ERP X3 delivers an intelligent, integrated system so distributors have complete visibility and flexibility in managing operations, including purchasing, warehousing, customer relationship management (CRM), accounting, sales, and more. With built-in business intelligence and inventory management capabilities, distributors are able to identify where the biggest improvements can be made, reduce inventory and working capital, and make strategic price adjustments—pricing key products aggressively to bring buyers in the door, while marking up products competitors do not offer.
ata from Aberdeen’s 2013 ERP Benchmark survey illustrates the top business drivers impacting ERP strategies in wholesale and distribution (Figure 1).
Figure 1: Top ERP Drivers in Wholesale and Distribution Need to manage growth expectations
Delays in decision-making from lack of timely information Must reduce costs
Interoperability issues across multiple operating locations
Interoperability issues with customers / suppliers (Need to be easier to do business with)
Percentage of Respondents, n = 95 Source: Aberdeen Group, July 2013
With Sage ERP X3, the challenges of getting bigger are smaller. Wholesale distributors indicate they are turning to ERP solutions for three key reasons: to manage growth expectations, to improve decision making, and to reduce costs. Sage ERP X3 provides midsized and larger distributors with a compelling solution for addressing all three challenges.