When is the right time to implement a distribution software?
As a your distribution business grows, You need a distribution software. You notice it is taking you longer to find out where you stand financially. Your sales forecasts are guesswork. Your business can’t keep up with its order volume and customer satisfaction is very low. You have no idea how much inventory you need to satisfy demand and you don’t know the carrying cost of your inventory items.
If you have any of the following problems, then you need a Distribution Software
- You Have Lots of Different Software for Different Processes
Do accounting staff use one system for receivables and payables, and sales use another to enter in customer orders? Is the process of taking those orders and getting them fulfilled and into accounting a time-sucking manual process? Do employees in your warehouse use a completely different solution to track shipping and receiving?
When various front- and back-end systems run separately, it can create conflicts between processes that are meant to ensure your company is running smoothly. Without accurate data from sales, inventory management may suffer, while not having the latest information from accounting can trigger a ripple effect on everything from marketing budgets to payroll.
A Business software integrates these systems so that every business function relies on a single database. With one source of information that contains accurate, real-time data, an ERP solution breaks up information logjams, helps staff make better decisions more quickly and frees up their time to work on more high-value exercises like helping the business grow even faster.
- You Don’t know where your business stands financially
If someone asked you what your average sales margin is, how long would it take you to find out? What about other key performance indices, like orders per day or sales to date? The pace of business is very, you can’t wait for data to be analyzed using excel or some other software, it is inefficient and subject to mistakes
- Accounting is a hassle
The first sign that your business needs a business accounting software come form the accounting department. If your employees rely on paper-based invoices and sales orders—and spend hours every week manually entering them into different accounting and sales systems, you need to think about a business software
The same goes for financial reporting.
- Sales and the Customer Experience Are Suffering
As companies grow, one of their biggest challenges is often inventory management. Ensuring that the right amount of products is in the right location at the right time is a vital part of business operations. A distribution software will make managing your inventory a breeze.
When sales, inventory and customer data are maintained separately, it can create serious problems across your company. If you run out of a popular product, sales will be off until the next shipment arrives. Meanwhile, if a customer calls to inquire about an order and employees can’t track it to see if it’s been shipped—or if it’s even in stock—your company will start to develop a poor reputation for reliability and service.
- Your IT People don’t have time
One of the biggest downsides of having multiple systems across your business is that IT management can become a challenge. Maintaining and updates separate systems and software all the time is counterproductive and opens the door for many mistakes.
If you identify with at least 2 of the above problems, then you definitely need an business software. If you are in the distribution business, you will probably understand the challenges of having multiple software solutions for different business activities. A good Distribution software will Reduce cost and increase total visibility