ERP Benefits: 5 Key Advantages to Using ERP Software

Johnny Marx
November 24, 2015

Enterprise Resource Planning (ERP) software is widely used by wholesale distribution companies to help them track the goings-on in their warehouses, finance departments, manufacturing apparatuses, and more. Whether you’re just beginning to consider and ERP for your business or are actively looking for a solution, we’ll examine five of the main ERP benefits that can help your wholesale distribution business run back office operations more smoothly.

5 Key ERP Benefits

1. Cost reduction

One of the leading software investment motivators for any business is cost reduction. By providing automation capabilities and broad visibility into your back office operations, an ERP system can help reduce administrative costs associated with manual processes while also providing other valuable insights into your business. For instance, one way ERP systems can reduce costs is through accurate inventory management and demand forecasting features. Lost inventory and excess carrying costs can cost wholesalers millions each year. Through automated inventory processes and the tracking of buying patterns, an ERP can help you reduce the cost of holding inventory longer than needed and ensure you have optimal stock levels in your warehouse.

2. Scalability

As your business grows, you’ll need a robust back office solution that grows with it. ERP systems are generally easily scalable. As your business changes, new functionality can be added to manage new processes and departments. If your business goes global, an ERP should be able to handle multiple currencies and manage operations across multiple warehouses.

3. Leaner supply chain

As mentioned earlier, an ERP system can help you reduce costs. This is in part by creating a leaner supply chain. Having the right ERP system in place can help improve procurement, inventory, and demand forecasting to make your supply chain leaner and more responsive.

4. Increased visibility

Once implemented, an ERP can create a relatively comprehensive view of your back office operations. Instead of segregating data into individual silos, ERP benefits wholesale distributors by creating a holistic environment that manages, collects, and distributes information across functional boundaries, allowing more cooperation between production, materials, finance, and planning.

5. Reporting

ERP software can not only make data more visible to the organization, it can also help when it comes to compiling that data into useful reports. With these reporting capabilities, your organization will be able to more quickly respond to complex data requests and make more insight-led business decisions. Questions about ERP systems? Let us know in the comments below.