Why distributors should use ERP Software?

Enterprise Resource Planning or ERP is preferred by many distributors for the fact that it enables users to manage multiple departments or business areas, small or big, with just one software. Multiple departments such as accounting, inventory management, financials, sales can be managed together through a single system which in return offers maximum control and insight into the business.

Keeping each function and department separate can add to miscommunication or increase the communication gap among different functions and departments. Such scenarios might lead to loss of data, errors, duplication of records, no or blurred view of the whole business, missed opportunities, loss of sales, etc.

Deploying a reliable ERP solution in UAE helps distributors in setting and achieving business goals through comprehensive efforts. However, the functionalities or the advantages of the ERP are not limited to these only. ERP offers assistance in customer satisfaction and customer loyalty too.

Reasons why distributors should use ERP:

Understanding Customer behavior

It is the customers to whom you are catering and hence, it is important to understand their buying patterns.  An ERP is a preferred way of communicating with them. Different aspects of customers buying behavior such as mode of shopping used, offline or online; hands-on or hands-off communication; determining the touchpoints of customers, etc. can be learned and leveraged through ERP.

An organization deals with a number of customers daily and each customer has different demands. Every organization has a huge source of data to track and evaluate. With ERP, distributors can have a high-level view of purchasing patterns, frequency, most purchased items, modes for ordering items, etc. and use this data to estimate when a particular customer or group of customers are going to place an order, what product, from which price range, etc. Depending on the needs of the customers, distributors can develop tailor-made communication habits with each customer.

Segmenting Customers

One of the crucial importance of installing an ERP system in the distribution business is to categorize buyers in different sets based on different tags such as prices, product type, etc. This feature can be used to prioritize both customers.

Personalize Content

After segmentation of customers in the ERP system, one can also personalize the content one wishes to see on the system. Using a  personalization feature on ERP tailor-made products can be produced or built. Here, customers are valued and their demands are considered. The marketing team can use this data to send out customized promotional emails to customers.

Create More Informed Reports

An integrated ERP and CRM software makes it possible to create more data-driven reports that provide insight into current order management, shipping, and inventory, to name just a few. You can use this information to track fluctuations in these three areas and identify possible explanations and inform yourself of the most important metrics to track moving forward to help you meet customer demands.

Know the Profitability

There is no point in keeping spending on the warehousing and distribution of those products and services which are not even in. As a distributor, you must make sure that every penny spent on the product is worth it. Accessing profitability helps in this. This feature will tell you which of the products you are distributing are making you the most profit. Which type of customers is buying them? What is the frequency, etc?

Accurate estimations

One of the ways of earning profits and reducing wastage is to build a balance between the demand  & supply of the product/services. And this is possible only when your forecasting abilities are bang on. ERP systems are built for this. A reliable ERP solution will alert you if the supply or demand of any product is not in equilibrium. 

Who would not want to enjoy higher profits and customer loyalty? However, both these scenarios demand a certain change in the way business operates. Distributors have to be more customer-oriented, insightful, and easily reachable. Most of all, they must never run out of products as customers do not like to hear NO when they ask for their favorite product/services.

Maintaining demand and supply, connecting with customers with suitable recommendations, preparing tailor-made offers and promotions, etc. is a part of engaging existing customers and attracting new ones. Without ERP none of this would be possible.