Distribution Management Software: The Critical Role Your Software Plays

Managing your distribution chain has numerous facets that, when tied together, create a powerful stream of information enabling you to work smarter, not harder.

Inventory Control
Tracking the entire sales/distribution cycle is arguably the most powerful information to have at your disposal. With distribution management software, such as Sage 100 ERP or SAP Business One, you are able to track your receiving, storage locations within your warehouse, quantity, shipping method, and delivery. Tracking your inventory at stages ties into the following functions increasing your speed, ability to sell additional stock, and track your capital investment as it moves through the stages.

Shipping
Streamline your shipping process with the tools to calculate freight, shop best shipping rates, apply parcel insurance, and create shipping labels. Pick, pack and ship capability can speed up your internal processes to meet demand and continue to grow your business.

Sales Orders
With all of your inventory and pricing structures at your fingertips, you can efficiently process customer orders. Distribution management software can tell you the available inventory, alternate inventory suggestions for out of stock items, quantity and discount pricing, and bundle pricing. Your customer’s information can be accessed at the time of order to reference billing status, credit limits, and previously ordered items. Know immediately if they are a preferred customer!

Sales Analysis
Predicting future sales is much easier when you can quickly access information on your top sales personnel, top selling stock (or worst selling stock), the corresponding revenue and paid commissions. Predicting how much stock to keep on hand enables you to free up your capital for other uses.

Accounting
We all take the accounting function for granted. Naturally a distribution management software worth its salt would keep this all straight. But if you find yourself in a system that is not integrated with the other modules mentioned above, you will find yourself doing double the work to keep that accounting in sync.

Call or Email Sales Executive Jan Lawrence at 678-627-0646 ext. 249 or jlawrence@i-bn.net. Visit our website at www.I-BN.com for more information on distribution management software. I-Business Network (I-BN) is a provider of cloud hosting and business software solutions since 1999! We provide business solutions including distribution, light manufacturing, and e-commerce.

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Outgrowing Entry Level Software

Growing out of entry level software, such as QuickBooks, Sage 50 or Xero, is a great problem to have. It means you have grown and may be ready to graduate to the next level as a business. First, ask yourself if you can relate to the following signs you have outgrown using your entry level software:

• Has data become unmanageable? Do you have access to information you need in real time?
• Is performance suffering?
• Is data corrupting?
• Are you supplementing your entry level software with Excel
• Do you need to import or integrate data from outside systems?
• Do you need more users?
• Is your system a glorified check writer?
• Does it take too long to bill clients and close the books?

If you find yourself answering “yes” to many of these questions, it is time to consider a business management software system. The first thing to know about this process is that, change is hard. As you investigate the numerous available options, you will need to define the long-term functionality of your system. Choosing a system that can grow with you means you won’t be going through this process again in the near future.

Enterprise Resource Planning (ERP) software is a comprehensive business management system which includes more functionality than an entry level system. Most entry level systems focus on accounting and basic inventory management functions, where ERP typically includes the sales, distribution, manufacturing and other processes in a single system. Choosing an ERP system means investing a lot of time and money, so making sure you have the right vendor with the right system is very important.

Choosing a System
There are several things to consider when you choose your ERP system. Defining the company goals first will help you define the features of your ERP system. First ask yourself, “What are my business goals.” Then ask, “What are the “must have” features? Do I need industry-specific capabilities? Knowing your goals helps to define the type of system you need and how much scalability you are likely to need in the future.

When looking at new systems, it is also important to have a budget in mind. The budget should be set based upon the potential value you can derive from having a completely integrated system. For example, how much time or money can we save by having orders flow directly from our eCommerce site into our ERP system. Or, how much could we increase sales with integrated customer relationship management software? The budget should be set in perspective to the value to be derived over a reasonably short timeframe.

Best practices tell us that defining the functionality of your system is the primary concern during the selection process. Getting input from a team of individuals ensures that the focus is on full functionality. Creating a team including those who will be working in it on a daily basis, those who will help to maintain the system, and peripheral users throughout the company is advisable. Each of these individuals will:

• be able to contribute to the value/budget definition,
• have different needs to meet, and
• will use the system in different ways.

Now that you have defined the features, industry criteria and budget, it is time to ensure the goals of the company are supported by the ERP system. Can the system perform as promised and meet the criteria of functionality of your business? Can your employees intuitively use the system?

Choosing a Vendor
It is important to point out that all vendors are not the same. Defining the capabilities of your vendor can make a big difference when you really need it. Some questions to keep in mind while looking for the right vendor:

• Can your vendor provide real world advice on your software?
• Can they provide quality customer support?
• Do they understand your industry-specific needs?
• Do they know the needs of small businesses?
• Are they well-informed on the scalability and integration capabilities for your ERP?
• What do they know about working in or with the cloud?
• Do they have any references?

We know that the above is a lot to consider and we want you to have all of the tools necessary to make this journey pain free. Remember to create a plan and work your way through it. Get advice from others in your industry. Call industry professionals like us. I-BN offers a ½ day workshop to help you determine whether you should consider upgrading and outline your value/budget definition! Call Jan Lawrence at 678-627-0646 x249 for more information.

I-Business Network (I-BN) is an ERP and cloud solutions provider since 1999. Established by professionals in the accounting and software industry, I-BN has provided cloud hosting and business solutions including industry-specific solutions for distribution, light manufacturing and professional services.