Distribution - Facing the Forces of Change with an ERP Software System

The four definitive trends listed in the National Associationof Wholesalers-DistributorsÂ' publication Facing the Forces of Change are fairlystraightforward, although meeting these customer expectations often proves difficultfor an unprepared distributor. Learn to successfully cope with these trends isoften assisted through the implementing an enterprise resource planning (ERP)software package, which is a critical first step for wholesale distributors. In Facing the Forces of Change (available at www.nawpubs.org) the four trends aredetailed:Â Customer Self-service: Providing customers with up-to-date technology that allowsaccess to pertinent account information and provides the customer with an avenue toimmediately act upon this information as needed. Examples include such functionsas: online ordering, online access to product offerings and documentation,interactive product configuration management, and access to inventory levels ororder status. Not all ERP systems are equally suited to meet this distributionrequirement.

 Strategic Sourcing: Leveraging an organizationÂ's existing purchasing power tolower product and transportation costs, reduce product lead-times, and streamlinethe overall purchasing process. In companies with multiple locations, this caneasily be achieved by centralizing purchasing, instituting formalized purchasingpolicies, and automating the purchasing process through the usage of distributionrequirements planning or DRP processing. Again, many ERP systems fall short inassessing distribution requirements.

 Fee-based Services and Pricing: This concept allows distributors to offervalue-added services to differentiate themselves from their competition and improveprofitability by providing customers with a service offering they both want andneed. The key is to offer products that are backed by exception services which helpaugment the customerÂ's own profitability and aid in the purchaser reaching their ownsourcing objectives. Many ERP systems cannot accommodate the exceptions common indistribution.

 Logistics and Fulfillment: As more third-party logistics companies vie for themarket share of the wholesale distributor, these old school distributors need tobecome savvier with their service and fulfillment offering. Simple order to cashprocessing will no longer appease the average customer; distributors must advancetheir offering to show exceptional customer focused value. ERP systems must havethe capacity to accommodate fulfillment.Founded in 1990 and headquartered in Toledo, Ohio, Technology Group International(www.tgiltd.com) is a proven technology leader delivering Tier 1 applicationsoftware functionality at a price performance level that can be readily accepted bywholesale distribution organizations of all sizes. A best-of-breed ERP softwaresolution provides the basic footprint for managing the four trends outlined andEnterprise 21 offers functionality well beyond that of the standard distributionpackage. Enterprise 21 provides full ERP functionality with a fully integratede-commerce module. It is one of the few ERP systems to meet the needs of todayÂ'swholesale distribution without the need for expensive and time consumingmodifications.

Source: Express-Press-Release.com

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