Distribution ERP software manages logistics operations as well as front- and back-office activities of wholesale and distribution companies. This type of software is used to determine product demand and ensure that products sold are delivered on time. Distribution ERP is used mostly by departments in charge of inventory, warehousing, and logistics. Since distributors sometimes combine products before selling them, most distribution ERP software offer features for assembly and kitting. Most distribution ERP solutions also provide modules for accounting, sales, and purchasing, and sometimes human resources.
Since not all distribution ERP products include all the modules mentioned above, they usually integrate with accounting software, CRM all-in-one software, or HR management suites. For advanced supply chain management and e-commerce needs, distribution ERP systems also integrate with supply chain suites and e-commerce platforms.
To qualify for inclusion in the Distribution ERP category, a product must:
- Provide inventory management and control functionality
- Generate inventory count documents for cycle counts
- Include features to manage warehouses across multiple locations
- Track sales orders and match them to inventory availability
- Create and manage purchase orders to fulfill demand
- Manage shipping and receiving operations in various locations
- Assist users with picking and packing products for shipping
- Maintain financial transactions for all activities such as sales or purchases
- Manage product cost, pricing, discounts, and profit margins
- Plan and implement transportation and delivery schedules
- Analyze the financial and operational performance of the company
