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Distributor ERP Selection Guide

The digital revolution has changed the Wholesale distributors Business. Now, Wholesale Distributors are evaluating ways to adopt the Next generation of Cloud ERP and other related Technology faster.

Over the last ten years, many new technologies have come out of the labs and have become ‘Wholesale Distribution Industry Ready.’ Good examples of emerging technologies are artificial intelligence, Blockchain, machine learning, cloud computing, Industrial Internet of Things, and robotics process automation.

See Also : ERP Software for IBM i, Power i, iSeries

These technologies offer value propositions that Customers cannot ignore anymore. Organizations are designing their Digital Transformation strategies that will provide the technology roadmap for the future. Besides technological innovation has demonstrated that Technology is scalable and mobility is real, and both of them help increase revenue, reduce costs, and improve efficiencies. Also, the market for new technologies will explode over the coming years. In the next five years, it is estimated that the growth of the global cloud computing market will have doubled.

Table of Content Distribution ERP Software, Selection Guide:

  • What is Distribution in a business?
  • What is Distributor ERP Software?
  • Who exactly needs distributor ERP?
  • Why do you need Distributor ERP?
  • What are the benefits of distributor ERP software?
  • Consideration for large distributors choosing a New ERP Software
  • Consideration for small and medium Distributors choosing New ERP
  • What features should you look for when selecting distributor ERP?
  • How can you assess the best distributor ERP?
  • What is the cost of distributor ERP?
  • How can you build an ERP budget?
  • Conclusion

What is Distribution in a Business?

Among the most important business processes is distribution. A business can either choose direct or indirect distribution channels. Channels connect the manufacturer and the end consumer. Direct distribution, also called zero-level, is the shortest and quickest channel as consumers get goods directly from the manufacturer. Indirect distribution entails intermediaries like wholesalers, distributors, agents, and retailers. It is not just long but complicated too. This is why you need distributor ERP software and get familiar with ERP selection.

What is Distributor ERP Software?

This software is a special tool for handling all your distribution activities. As a distributor, you will make more money if you satisfy your customers by delivering their goods on time. Without thorough tracking of everything that happens throughout your distribution supply chain, an error could occur. A single error that is not discovered early could delay the whole shipment and cause customer dissatisfaction. That’s when distributor ERP becomes a handy tool.

Besides automating every activity in a distribution channel, the software can make you look and feel like a professional. Software is a sure way to increase the speed and efficiency of your distribution service. You can handle large orders with ease no matter their frequency.

Who exactly needs distributor ERP Software?

Distribution ERP system is meant for any person that is in charge of handling inventory, warehousing, and/or logistics. The one who fits this description well is a wholesale distributor. It also suits large retail chain stores and retail shops. While it is largely preferred by those who handle logistics, this software is all-encompassing and can meet the needs of those responsible for warehousing, accounting, sales and marketing, project management and inventory management. All you need to know are ERP selection steps.

Why Do You Need ERP Distribution System?

You basically require distribution ERP software to automate your distribution supply chain. The tool offers functionality for all business processes. It works as a single platform and database. With ERP you can identify a problem and solve it before it ruins the whole distribution procedure. Any issue can arise, including your delivery truck developing a mechanical problem or a flat tire, or skipping an important delivery date. With software, this cannot happen as it’s going to send an alert every time there is an issue. If you don’t know how to select a new ERP system, continue to read this guide as this can save you thousands of dollars later on.

What are the benefits of distributor ERP software?

If you are a distributor looking to enhance your distribution service, you need ERP software. But, why are ERP systems worth their cost? These systems can be extremely beneficial if selected wisely. They can offer these advantages:

  • Creates a central repository system that handles every process and task in the distribution process.
  • Boosts customer satisfaction and ensures that their confidential information is stored safely in a central database.
  • It can quicken the tasks done by your sales force, logistics team, warehousing team, accountants, as well as other people taking part in the distribution of goods.
  • It creates reliable financial reports that managers can use to track the performance and success of your distribution channels.
  • It can get rid of data errors and repetition. Your distribution channels involve different activities and processes. If you handle them with a single ERP software tool, you can eliminate erroneous data.
  • Can lead to revenue growth. If your indirect distribution channels run effectively, it means that everyone including the final consumer will be happy with your service. When customers are happy, they will order more and spread the word about your business. This can translate to higher sales. What’s more, the software can help you manage different resources in a cost-effective manner and this will reduce loopholes through which you can lose money.
  • Better stock management. As a distributor, your job entails ordering goods in bulk from a manufacturer, keeping them in a warehouse, and distributing them to various customers as soon as an opportunity comes. When you track your inventory with software, you can see what you ordered, how much stock is left, and when you need to replenish your stock. The software can ensure that no delivery dates are missed because of a lack of stock.

Consideration for large distributors choosing a New ERP Software Package

Are you a large-scale distributor? If so, your business is complex and has bigger legal requirements than an SME(small and medium enterprise). Maybe you already have global operations or are planning to start them. When it comes to how to successfully select an ERP system, you have to be vigilant and thorough.

The entire process of obtaining and implementing software should take at least a whole year. This being a complex process, you should consult an expert who can help you select and implement software. As for the features, consider standard features and industry-specific features. Standard features must include:

  • HCM or Human Capital Management
  • Financial Management
  • Customer Relationship Management or CRM and Sales Force Automation(SFA)
  • Supply Chain Management or SCM
  • Contract Management, Document Management
  • Material Requirements Planning, Distribution Requirements Planning and Capacity Requirements Planning
  • Enterprise Asset Management, EAM
  • BAM(Business activity monitoring)
  • Business Intelligence or BI
  • Enterprise Performance Management(EPM)

Lastly, your software should be easy to merge with existing enterprise software tools like QuickBooks.

Consideration for small and medium Distributors choosing New ERP Software

As a small or medium business, your ERP software requirements are manageable. You are the only owner and boss. There are several software tools that are designed with your type of business in mind. The essential thing to focus on is how to select the correct ERP system. Consider:

  • Available resources – SMEs are known to have financial struggles. If you are not stable yet, you may not implement ERP software at this point. Alternatively, you should select a simpler ERP system that could suit your current budget.
  • Features – As an SME that is seeking growth via the assistance of ERP, you should buy a system with helpful features. At the very least, it should have financial management, inventory management, sales orders, and analytics features.

It is necessary to involve your entire staff in decision-making processes concerning the selection and implementation of ERP.

What features should you look for when selecting distributor ERP Package?

Regarding features, make sure that your favorite software has all you require to simplify your distribution procedure. Usually, most people search for the following ERP software features:

1) Sales order management

The software should support sales functions like sales order processing, sales order inquiry, sales order reporting, shipping management, customer pricing, and self-services for vendors and customers, and return policy among others.

2) Financial management

You should know how to select an ERP package that supports financial management activities. It should be a tool that accountants can use to do accounts payable, accounts receivable, budget forecasting, financial reporting, debt management, order billing and invoicing, asset management, payroll management, and more.

3) Customer relationship management

A good distributor ERP gathers necessary customer data and stores it in a safe database for future retrieval. The CRM feature it should support promotion management, contact management, sales force management, quotes and estimates management, inquiry management and so on.

4) Warehouse management

Functions relating to warehouse management can range from picking procedures to demand correlation, shipping management, tagging functions, multiple warehousing, outbound processes and slotting optimizations among others.

5) Inventory management

Another feature to recall when considering how to select ERP solutions is inventory management. As your customers don’t expect to miss an item they want, then make sure to select software with an inventory management feature. This feature should support various things, including inventory and stocking costs, requirement planning, demand forecasting and inventory availability among other things.

6) The Procurement management

As a distributor, you need ERP software that can offer you full procurement capabilities such as purchase management, vendor management, purchase orders, bid management, procurement planning, and multiple warehousing among other processes.

7) eCommerce for distributors

As a distributor, you are involved or will soon be involved in B2B eCommerce. When that time comes, you will require eCommerce for distributors, which is a type of software. This will help you connect with other buyers better. Instead of buying a single software tool that does just one thing, you should know how to select the right ERP software for your business. ERP will have an eCommerce for distributors function and all the above; so, it is cost-effective and dependable.

How can you assess the best distributor ERP?

One thing you will discover when searching and selecting ERP software for your business is that there are several options. To ensure that you end up selecting the right tool, you should carry out an assessment of each in a sensible way. Here is how:

  • Create selection criteria of erp by writing a list of ERP needs for every department you have in the organization.
  • Assess your workflows to further understand what will be required by everyone so as to select ERP that can address every need.
  • If you need professional advice or help, call an ERP provider you have been thinking of buying the software from. You can even invite them to come over and have a talk with your entire team.
  • If the consulted ERP provider is able to, ask them to demonstrate how their software can transform your distribution channels for the better.
  • Assess your team’s training needs and the process of implementing software. This is to know if you need to consult outside helpers or can do it in-house.

Choosing ERP Software

When it comes to the selection of ERP software, you should consider different factors. These are:

  • Business goals and needs
  • Business expansion and growth goals
  • Redundant areas of your business that can be replaced with software
  • Marketing goals
  • Current technology and scalability plans in future
  • Your budget and resources as you want to be totally sure that you can afford ERP
  • You in-house technical team to help with software installation and assess if an outside consultancy will be required.

What is the cost of the distributor ERP System?

As you decide the best ERP to get for your distribution business, focus on the cost. After all, you can only get the software you can afford with your current finances. The cost is so important that you should fully understand this: how much does it cost to implement an ERP system? To compute the total cost of obtaining your ERP, consider these factors:

  • Who will have to use this too and how many are they?
  • Do you get several orders daily or do you need more marketing effort to attain this?
  • The cost of the software itself and licensing fee
  • Cost of implementation
  • Extra customization cost
  • Maintenance cost
  • Upgrading cost
  • Employee training cost
  • Cost of obtaining support

How can you build an ERP budget?

You are about to buy new ERP software and this is great. However, are you aware of how you can control your overall business expenditures in the next few months or years? This will be difficult, but this is how to budget for it:

  • Assess the overall cost of obtaining software once again.
  • Assess the ERP’s cost savings in the long run.
  • Do you have any cash-flow issues now? If not, can you project one in the near future? You are doing this to decide if borrowing is an option.
  • Involve management in deciding if your budget deserves approval. If it is approved, then publish it for all to peruse.
  • Once you begin spending, revisit the budget plan to see if your estimations and actual costs tally. There will also be planned activities that happened late than estimated. Perhaps you had planned to borrow but got a windfall and doesn’t require a loan anymore. All these changes should be made to the budget.
  • Keep updating your budget as you experience actual costs as this data will be needed by accountants and financiers at the end of the accounting year.
  • Finalize and review your budget when you successfully implement your ERP software.

If you don’t know where to begin, you can get an erp budget template online as it will simplify the process.

Conclusion

Distributor ERP software is a must-have if you want to help your business perform better and enhance customer relationships. Single software can have a bunch of helpful features, some of which we discussed in this guide. Therefore, it is cost-effective to buy one software tool that does everything involved in distribution rather than getting one tool per activity. Now you know a few approaches for selecting erp systems.

The coming decade looks very promising for the Wholesale Distribution ERP market. ERP being the backbone of Digital Transformation will benefit as Companies look at initiating the transformation process. Other than Digital Transformation, there are standalone trends that drive ERP Adoption in the coming years. It’s an exciting time for Ximple Cloud ERP. We continue to make the technology investment to help leading wholesale distributors grow business, improve margins, and compete with digital behemoths such as Amazon and other technology competitors making their way into the wholesale distribution business.


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Distribution Strategy

Introduction

Did you know that sales are the key to higher revenues and contented workers? That’s true, and if you want to sell more, you should make a plan. First, you should have a goal to attract and retain customers. Second, you should deliver a product or service to the customer and the correct information. And to achieve this, you should come up with a distribution strategy that goes well with your business needs. This strategy will help you manage the complete sales process. But, do you know what it is all about? If not, don’t worry; this guide will educate you.

What is a Distribution Strategy?

In a nutshell, the best distribution strategy definition is a plan to help you deliver a product or a service to the customers you are targeting via a supply chain. This plan includes all the approaches you would use to give the customers what they expect from you finally. A good strategy can incorporate your distribution channels or employ other companies’ channels. In addition, your business can use its exclusive stores or sell through other retail stores.

Moreover, a business can use both its stores and third-party retail chains. In modern times, especially after the Covid-19 epidemic, companies are using online exclusive sales channels. Hence, you should pick a distribution channel strategy that suits your business. The best approach will help you deliver goods or services to the target audience at optimal distribution costs. It will also maximize your sales revenues and profits. On the other hand, Bad distribution strategy types will cause losses and let your competitors win.

How to select the right Distribution Strategy

Now you know what a distribution strategy is. Next, you will learn how to select the right one for your business. There are a few factors to reflect on, and they include:

Check the market status right now

Before coming up with a distribution marketing strategy, carry out a thorough market analysis. The goal is to discover the correct way to distribute the type of products you sell. For instance, if you deal with consumer goods, the proper technique is FMCG distribution. Only a meticulous market analysis can reveal the appropriate distribution channels for your products. It can also help you study customers’ buying behavior and pinpoint their specific needs.

Distribution costs

No matter the channel you choose, there will be costs to incur. If you select a more comprehensive direct distribution strategy, it means you will sell directly to the final customer. The method is more straightforward, but it has some costs to incur. The more comprehensive strategy involving intermediaries is more convenient, and goods can reach the customers almost immediately. However, every intermediary should earn something to continue being loyal to you. In essence, you should develop charts and graphs showing potential costs and profits from each distribution channel.

Do you sell complex or simple products?

As you try to create a sales distribution strategy, focus on your product. The product is complex in that it requires technical support after delivery. Do the customers need an after-sale service, such as installation and maintenance help? If so, you should sell it more directly to go to a dealer and then to a customer. The dealer will help your customers sort out their issues. On the other hand, if your product is a typical household appliance, such as a blender, you can select an extended distribution channel for it.

What profits are you targeting?

If you choose the shortest distribution method, your business revenues can increase. Nonetheless, this can happen only if you don’t sell FMCG products. For these, you need a more extended distribution channel to increase your revenues and profits. In some situations, higher revenues may not translate to higher net profits.

What will be your market share?

How quickly can your business establish itself in a new market? If such a market is already saturated, you will find it hard to penetrate a new market. There will be competitors doing well already, and it will take longer to get a market share. So you have to do your distribute strategy math very carefully.

Where your product is in its life cycle

If your product is new, a more extended distribution channel is necessary to ensure it is recognized on the market. And as you choose who to connect and grow with, you should consider their availability and expertise.

Distribution Strategy: Stay competitive in the Digital world

As you think of how to make a distribution strategy, focus on technology. First, think of how to use technology to promote and sell your products. In this case, you should explore eCommerce as a distribution channel. It is estimated that by 2021, eCommerce sales will reach 4.8 trillion. Why wouldn’t you want to be part of that? Countless people are using apps to buy things online, and you can sell to them too. Secondly, you can use technology to implement your preferred distribution strategy. As you will learn below, there is software that can help you manage your supply chain processes

Distribution Strategy examples.

A suitable distribution strategy example will vary depending on the marketing channels you have selected. First, a direct channel occurs when a manufacturer sells straight to the consumer. The channel must be short if it’s direct. Hence, good examples of this are primarily retail brands that sell fast foods and perishable goods.

As for an indirect marketing channel, it occurs when the path is long and complex. Typically, there will be many distributors and middlemen. Examples can be soft drinks companies, including Coca-Cola and Pepsi

An intensive distribution strategy is more intensive and considers more than just the size of a distribution channel. It uses a more aggressive approach, and examples include vehicle brands and distributors of household appliances.

Moreover, a business can use an exclusive strategy when it has a high brand value to protect. It will open stores in major cities with upper income and classy customers and still outdo its competitors. Examples are big fashion houses with high-end designer products.

Lastly, some businesses use a selective distribution strategy. You will find them in almost every street, or they may start a few stores in every major town. Good examples are big supermarkets and retail chains.

What are different types of Distribution Strategy?

Direct distribution

Here, manufacturers sell directly to the end consumer. Some direct distributors sell online, particularly those targeting younger generations that have more technological knowledge. The rest use product catalogs, product lists, phone calls, and other advertising methods.

Indirect distribution

It is the opposite of the direct distribution method. Simply, this method entails intermediaries like wholesalers, retailers, and agents.

Intensive distribution

As aforementioned, this technique entails a more aggressive and extensive marketing approach. Hence, several retail outlets are opened to reach more customers and increase sales revenues and profits.

Exclusive distribution strategy

This method is a preference of companies that sell luxury goods. To purchase their products, you must approach their dealership. A good example here can be the Mercedes Benz car brand.

Selective Distribution

This technique is partly similar to intensive and exclusive strategies. Those that use this technique know full well that not all people will be interested in their products. So they set up stores in some selected areas. Their stores don’t sell anything else, and if they pick external stores, these will sell closely related products.

What are different distribution Channels?

These channels are all about how to distribute products to customers. As a distributor, you obtain goods, store them, and then sell to customers via a distribution channel. Different channels include following levels:

  • Zero – This distribution channel involves direct contact between manufacturers and customers. It is the shortest.
  • One – This one entails one middleman standing between the manufacturer and consumer.
  • Two – It involves two intermediaries, and this can be a wholesaler and a retailer.
  • Three – This distribution channel has three middlemen, namely: agent, wholesaler, and retailer.

How can I select the right distribution strategy for my wholesale business?

If you are a wholesaler, you need a product distribution strategy that works for your business. There are different types of systems, but some may not work for your business. The system that might work for you might not help the next wholesaler. You can opt for direct marketing via telemarketing and product catalogs or choose eCommerce marketing. It can be trial and error at first, but eventually, you will discover the best strategy for your business. Briefly, you should:

Know your customers perfectly

Ensure you find out who your target customers are, what they need from you, and how soon they want it delivered and where

Focus on your product

If you sell perishable goods or daily-use products, by all means, choose a direct channel. On the other hand, if you deal with non-perishable goods, choose indirect marketing channels. More to the point, select your intermediaries wisely.

Seek professional help

As a wholesaler in any industry, you have competitors. Any small error in decision-making can cost your business considerable losses in terms of time and money. Thus, if you honestly can’t select the right distribution strategy alone, find a professional who can help you.

After finding a distribution strategy to get the message to customers, the next thing is to implement it. As technology has become more innovative than ever, you should use it in your business. More specifically, you should start searching for the best distribution software. It would be best if you bought wholesaler distribution software as it is designed for your business. Not only will it make the distribution process easier to track, but it can also reduce human errors and stress.

A good software tool for distributors should have automation capabilities. In other words, it should boost productivity and ensure that you complete tasks quickly. Another component of this software is RFID tracking that simplifies inventory monitoring in real-time. It is based on a modern technology called the Internet of things. Moreover, the software needs to have all business management modules in a central position. The most common modules are accounting, warehousing management, customer relationships management, inventory management, and procurement management. Lastly, the software should be cloud-based rather than in-house. Cloud-based distribution software is easy to access from any place, anytime, as long as there is a Wi-Fi hotspot and mobile gadget.

Conclusion

If you want to create an effective distribution strategy, you should know that this is a multi-faceted and complex process. You have up to five distribution channels to choose from and a range of factors to think about. Whether you settle on the direct, indirect, intensive, exclusive, or selective marketing strategy, you need software to simplify the implementation process. In addition, if you cannot develop a strategy alone, you can consult a professional.


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ERP vs. CRM

What is ERP?

We will describe the differences between ERP vs. CRM before defining ERP and CRM. ERP or Enterprise Resource Planning is a software system consisting of different business management modules. ERP vs. CRM is used to increased profitability. You can think of it as one extensive database comprising financial management, accounting, purchase management, human capital management, Customer relationship management, project management, warehouse management, business intelligence, and sales management, among other modules. A business selects the modules to add to the ERP software to boost productivity, profitability, and efficiency.

What is CRM?

CRM refers to Customer Relationship Management. It is a type of software program that businesses use to scrutinize and manage customer interactions and data all over a customer lifecycle. They use this tool to enhance customer service relationships. A CRM software program can collect customers’ data across various contact points between a business and a customer. Concerning ERP vs. CRM, all business departments require ERP, while the sales and marketing team mainly needs the CRM. Each communication between a business and a customer enters into the CRM database for future retrieval. Besides capturing details of every customer, A CRM program can help a business design or identify the most desirable products and services.

Difference between ERP and CRM

After defining ERP vs. CRM , next, we will describe the differences between ERP software vs. CRM. These two are essential business management software tools, but are they different. ERP vs. CRM is used to increased profitability. ERP vs. CRM integration so crucial The following are the main differences between them:

While ERP controls different business functions, CRM provides a single database for the sales function or department.

It is easier to install CRM as it is a single system targeting the sales process and team. On the other hand, it isn’t easy to implement ERP because it can have several modules as a business requires.

CRM being sales-specific software, shifting customer data to it is more straightforward. On the other hand, transferring the entire organization’s data from previously-owned automated solutions to the ERP system is laborious.

An ERP purchase and implementation process demand a substantial financial commitment than a CRM purchase and execution.

When it comes to who needs ERP and CRM, it is clear that a few medium-sized enterprises and many large-scale businesses can afford the expensive ERP. On the other hand, almost all small businesses would struggle to implement the costly ERP. They can easily afford CRM implementation.

Common ERP Functions

An ERP system can have as many functions and modules as a client want. However, some of these are critical and commonly included during ERP implementation. They include:

Finance and Accounting

Procurement or purchasing

Manufacturing

Inventory management

Order management

Warehouse management

Supply chain management

Customer relationship management

Project management

Human capital management

Service Resource Management

Sales and Marketing Management

As you can see, you should not confuse ERP vs. CRM software because CRM can be a part of ERP.

Benefits of ERP

By implementing ERP, a company can note some advantages. These are:

An ERP system provides a module for each department, helping the whole organization work as a team.

Although the initial cost of executing ERP is high, the system fully recovers it in the future by reducing overheads and streamlining processes.

ERP automates business functions and gets rid of paper-based operations.

ERP improves decision-making processes among seniors and subordinates by generating real-time data.

ERP improves stock management by assigning a barcode to each element of a finished product. The same barcode gives potential customers more information about the product itself.

Common CRM Features

A single Customer Relationship Management program can have as many as 30 features. All businesses don’t need all of these features. The most important and common ones are:

Contact management

Enables a business to create a big customers’ contacts list and use it for marketing later on.

Lead management

It’s not every customer that is worth following up. With this module, you can sort high-quality leads and strive to retain them.

Lead scoring module

This is a crucial feature that can help a sales team identify leads likely to convert to loyal customers.

Sales analytics

This module is vital as it can help the sales team gather data from all platforms, analyze it, and create analytical reports to be used when creating future sales campaigns.

Mobile CRM

This feature ensures that CRM is available to mobile device salespeople.

Sales forecasting

It is a feature that will help the sales department create a yardstick to measure sales efforts against the actual results.

Salesforce Automation

This is a tool for automating routine tasks that employees do to help them focus on other more beneficial tasks.

Emails Client Integration

This is all about having an email client within the CRM software for more accessible communication.

Business intelligence, reporting, and dashboards

allow users to capture real-time data update no matter the platform they are using. As a result, they can make better decisions.

Data or file storage

This feature is created in CRM software systems to help users store and retrieve data quickly.

File Sync and share feature

You can merge CRM with Google Drive, DropBox, Outlook, MSExcel spreadsheets, or any other program you like.

Sales Performance Management

This module is added to help management overview the sales team performance.

Benefits of CRM Cloud

A cloud CRM is a customer relationship software program that exists in the cloud. Therefore you can access it anytime as long as you have an internet connection and a browser. ERP or CRM can be on the cloud; it is your choice. Advantages of using a CRM cloud system include:

It is super easy to install CRM software even if you are a small business.

Cloud CRM is a seamless system that a salesperson can access from any place any time they like.

Although your sales team needs training, the whole onboarding process is more straightforward than that of ERP.

CRM cloud can help a business save time, one of the most irreplaceable resources.

ERP CRM solutions encourage teamwork and collaboration as everyone must refer to a central database.

Cloud CRM software is scalable and versatile, meaning that it will still fit your business if it expands.

CRM that is in the cloud can be combined with other essential business applications to simplify the sales team’s work.

It includes constant updates and provides reliable data backup.

CRM vs. Cloud ERP

IWhen deciding between CRM and ERP applications, it can be easy to determine the one you want based on if it is in the cloud or not. First, if you can afford to install cloud ERP, then do it and ensure that you include a CRM module. A standalone CRM is fine, but it cannot compare to an ERP already in the cloud in terms of benefits.

Your sales team can access this type of CRM at the office only. This is not the case for a team that is using Cloud ERP with a CRM module. They will always access it no matter where they are as long you have an active Wi-Fi hotspot.

How are ERP and CRM systems similar?

In this section, we want to describe the similarities between the ERP & CRM systems. Are they even related to each other? The answer is yes. The main similarity between the systems is that CRM is a common component of ERP. While a separate CRM module in a whole ERP system can’t be as robust as a standalone CRM software tool, it still works. It will generally lack some standard features found in a standalone CRM system. If present, the features might be brief.

Can CRM be integrated with ERP?

Yes, ERP and CRM integration is possible. This can allow you to have a single software system that can manage every other business process plus sales. What we mean by integration is that standalone CRM software is connected to an ERP to ensure that they work together as one system.

Is CRM part of ERP?

Customer Relationship Management is a unique business function that deals with sales activities. As software, CRM can stand alone or be merged with ERP. When integrated with ERP, CRM is one of the five most important features of an Enterprise Resource planning system.

Integration of CRM, SCM, and ERP

So far, you understand the meaning of ERP and CRM. When these are combined with SCM, do they even work? SCM refers to Supply Chain Management. This is a critical business function, especially for distributors and wholesalers. It is possible to have ERP systems that have a Customer Relationship Management module and a Supply Chain Management module. Each component will enhance your employee’s work. You can hire an ERP CRM SCM software company to help you carry out the complicated integration task.

Does our Distribution business need ERP or CRM, or Both?

As a distributor, you want activities per distribution channel to be quick and error-free. You can do so by obtaining CRM software. This can be a separate tool, or it can be a part of your ERP. If you already have distributor ERP software, the easiest way to have CRM is to add it as a module. If you don’t have ERP and cannot afford it right now, you may be best buying the CRM software alone.

You don’t need both software systems if you have a customizable ERP and your sales function is manageable. However, if you run a large business with global networks, your sales activities might require a Standalone CRM software program for robust management. If you cannot afford either, there are ERP CRM open source tools for you.

Cloud CRM vs. Cloud ERP

When making ERP CRM cloud decisions, you have to be careful. Will you deploy ERP or CRM software? If you want both, then you can either have software run separately or add CRM to ERP. When it comes to cloud CRM vs. Cloud ERP, you should know the best option based on your needs and financial ability. As a small business, you should probably postpone ERP installation and implement the cheaper cloud CRM. As a medium-size or large-scale business, you should either integrate ERP and CRM or run each software tool separately. Considering all things, running an ERP on the cloud will be more beneficial because it includes several business functions.

Conclusion

So far, you know the difference between CRM and ERP systems and the similarities as well. You also understand that you can either use an ERP system with a CRM module or use CRM independently. If you are a distributor, you can have ERP with supply chain management and customer relationship management modules. What you require to succeed is an ERP CRM consultant to help you select and install the best software for your organization.


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ERP Platform

What is an ERP Platform?

A corporate ERP Platform Software is broader than any standalone business management software. It is a merger of different software tools used for running a business. Thus, an ERP Platform Software has other software modules, including accounting, warehousing, distribution, purchasing, inventory management, finance, payroll, sales and marketing, and supply chain. Depending on your business size and type, you can have as many modules as you like.

The best ERP Platform software is customizable. So, you can add extra modules and features to it to ensure it meets all your business needs. The first ERP was developed in the 1960s, and in 1972, SAP made their first automated system. From the 1990s to 2021, the Software has mainly evolved, and many businesses have adopted it. Now ERP is on the cloud. ERP Platforms such as the Ximple Cloud ERP platform for wholesale distributors provide a unique competitive advantage by offering core distribution wholesale industry functionalities while offering open-APIs & Microservices to integrate with other systems with ease.

A corporate ERP system is broader than any standalone business management software. It is a merger of different software tools used for running a business. Thus, an ERP Platform has other software modules, including accounting, finance, payroll, sales and marketing, warehousing, CRM, and supply chain. Depending on your business size and type, you can have as many modules as you like.

The best enterprise resource management software is customizable. So you can add extra modules and features to it to ensure it meets all your business needs. The first ERP was developed in the 1960s, and in 1972, SAP made their first automated system. From the 1990s to 2021, the Software has mainly evolved, and many businesses have adopted it. Now ERP is on the cloud.

What are Cloud Computing Platforms for ERP applications?

An ERP on a cloud platform refers to a system that is accessible on the internet anytime and anywhere. It is typically hosted online by the software provider, and they can offer it as a service you can purchase every month; it is primarily SaaS-based. A business requires a connection to the host’s web server.

A cloud-based platform provides real-time insights to all involved in the running of a business. All cloud ERPs offer core business functions plus others. It is hard to find an ERP software platform that does not have these modules:

Finance and accounting.

Human Capital Management 

Customer Relationship Management.

Inventory Management.

Warehouse Management System (WMS).

Supply Chain Management.

Order Management.

Procurement.

Project Management.

Customer Relationship Management (CRM).

Many benefits follow when wholesale distribution business implements cloud enterprise resource planning solutions. The immediate ones are that a software provider will manage the application totally from their end. They will make sure your application is hosted 24/7 and produce real-time security updates and features upgrades. On-premise ERP software requires a business to use their skilled employee to maintain and upgrades the system.

Open Source ERP Platforms

These platforms are offered for free. They are the best when you want to use ERP business software but don’t have the capital to implement it. Software like SAP, Oracle, and Microsoft Dynamics are not for everyone. They are fantastic but too pricey for some upcoming businesses to afford. Ximple Cloud-based ERP is excellent alternatives to those companies if you are in the wholesale distribution business exploring Next Generation ERP software. Many companies need to use open source ERPs if they do not have a software budget. Though they cannot offer all the features found in premium products, open-source options are better than none at all.

As most of these are downloadable web applications, anyone can use them. But, there should be a server to which you will install your open source ERP platform. Support will come from either the active user community or an outsourced entity.

A list of Technologies for ERP Platforms

The following is a list of technologies that developers use in their ERP-based Software.

Options for databases include:

  • Oracle SQL
  • MSSQL
  • PostgreSQL
  • IBM DB2

Options for Programming:

  • Python
  • PHP
  • Java
  • Ruby
  • NET and ASP.NET.

Options for Frontend:

  • Vue.JS
  • JavaScript
  • React
  • AngularJS.
  • PHP Frontend

ERP Software Platform Features

An ERP computer system should have certain features to perform well. A primary platform should at least offer the most critical business management modules. These are:

Accounting and finance

This module should support primary accounting roles like bookkeeping, cost accounting, and financial accounting. Thus, it needs to have Accounts Payable and Accounts Receivable and a General Ledger. This module will be so crucial to your accountant and financial analyst.

Human Capital Management module

This is all about the management of all expenditures that your workers generate. It should simplify your payroll issues.

Warehouse Management module

This will depend on the kind of business you do. If you are a distributor, it is apparent that you run a warehouse. This module will simplify all warehousing activities.

Customer Relationship Management module

Without customers, any business is nothing. Thus, the best discreet ERP platform should have a module that can help customers track their shipments.

Inventory Management

This module helps with stock management. When an item is out of stock, the Software can reorder it automatically.

Other modules you can add based on the business you run and its size includes:

Sales and orders management
Compliance Management
Supply Chain Management
Marketing Management
Project Management

This module should support primary accounting roles like bookkeeping, cost accounting, and financial accounting. Thus, it needs to have Accounts Payable and Accounts Receivable and a General Ledger. This module will be so crucial to your accountant and financial analyst.

ERP Platform Benefits

We have told you what ERP and ERP solutions are all about. Now you need to know the benefits of implementing these solutions. These include:

High-quality customer care service and relationships because customers can now track their shipments live and leave their feedback.

A simplified business management role because all business processes are centralized and can be tracked and managed at once.

Cloud-based ERPs lead to optimal business performance because users don’t have to be stuck in an office to access them. They only need their mobile internet device to see the status of the business processes they are responsible for.

Human errors are significantly reduced, which boosts the productivity of the business and saves time. Time is a resource you can use where it is needed the most.

Information is right in front of everyone using the Software. This can enhance communication and collaboration between employees and their managers.

Enterprise resource planning ERP software leads to lower operating costs as it renders some human tasks redundant and not worth paying for.

ERP Platforms Challenges

Although the electronic resource planning tool sounds so great, it’s not easy to implement. The main challenge that affects small and medium enterprises is the initial cost being too high. Other than that, businesses looking to implement this platform may experience these challenges:

There are several phases during the implementation process, and each has critical roles. One sloppy action in a phase can destroy everything. Thus, forming an expert project management team is a challenge.

The original implementation budget may fail to include essential software capabilities or features. If these are discovered late in the process, it can be expensive to add them.

Gathering all data sources from various departmental records that need to be shifted to the new ERP computer system is complicated.

Duplicated data errors can be a challenge when moving your older software systems’ information to the new Enterprise Resource Planning tool.

Managing resistance to change among employees is a challenge as some of them may be reluctant to learn.

If a business has an on-premise erp platform, it can find it hard to do continuous software upgrades.

Small to Large Size Wholesale Distributors: Selection of ERP Platforms

Small, medium and large-scale wholesalers still run various departments. Even those small enough to have an office for every business function must take care of finance, accounting, sales and marketing, procurement and purchasing, warehousing, inventory management, and so on. So they need ERP for enterprises to simplify each business function and increase their profitability.

As a small business, you should select an affordable, scalable, and user-friendly ERP. Whether it is bought or open-source Software, make sure it meets the needs of your small business. Medium and large size businesses may have adequate capital to roll out the ERP software. They should focus on selecting the best software provider to avoid wasting time and money. This should be a stable software producer who can also provide periodic security updates and new software packages to upgrade.

Global Wholesale Distributors: Selecting ERP Platforms

Some wholesale distribution businesses begin small in one country. Due to upward growth, they move to the neighboring nations and at last shift operations to many countries worldwide. If you are running such a wholesale business, then one critical tool you need is a distribution ERP platform. You should assess it properly by first determining the features required by your company.

As yours is a multinational wholesale business, you need several business management modules in an all ERP platform. To determine all the required features, you might have to consult a software provider directly. Some can offer a free analysis to assist you in creating a sensible budget plan.

Implementing ERP

Once you have decided on the ERP product you want to buy, the next step will be selecting ERP platform components and implementing them. The deployment process is usually long and complex, explaining why businesses need to choose one implementation approach that could work for them. Some decide to roll out the platform all at once, while others decide to do it in phases.

Other decisions that should be made concern the type of deployment process that best suits the company. Will it be cloud-based or on-premise? If you choose cloud-based, you will have to select among Software as a Service (SaaS), open-source cloud, or a privately hosted cloud service that you host or hosted by a designated entity.

You can also choose Hybrid, which provides a wide range of deployment and hosting options. On-premise EPR implementation is a good choice when you want to place Software onto your server and run it personally. It is not even closer to having the benefits that a cloud-based platform ERP system can give you.


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ERP Accounting System

ERP meaning

ERP system is a software tool for managing businesses of all kinds and sizes. Enterprise Resource Planning software is a broad spectrum tool that comes complete with every business department module. Thus, with ERP system software you can do accounting, warehouse management, purchase and procurement management, financial planning, risk management and compliance, customer relationship management, enterprise performance management, and human capital management, and so on. An ERP platform is an all-inclusive system that can gather data from different transactions and scrutinize it thoroughly to remove duplication and other errors. 

 

 

Accounting Software definition

Every business needs accounting software; wholesale distributors are no exceptions. It is designed to simplify bookkeeping and accounting tasks. This computer software helps an accountant to record and report financial transactions of the business. Examples of this software are Ximple ERP & Accounting system for wholesale distributors niche, FreshBooks, Xero, NetSuite ERP, QuickBooks Online, Tradogram, Sage Business Cloud Accounting, etc. A simple accounting software platform will feature the Expense Principle, Objectivity Principle, Matching Principle, Cost Principle, and Revenue Principle. 

ERP accounting system definition

ERP accounting system has a more prominent role to play as compared to an accounting software tool. The latter is a standalone software program that can carry out all business accounting and financial activities. On the other hand, ERP accounting solutions are just a module within a software product that can manage all companies as a single platform. Instead of having one platform that does only accounting and bookkeeping, you can implement an ERP package with this function and more.  

 

Key Feature of ERP accounting system

Enterprise resource planning and accounting software should have several features to be considered helpful. These are:

 

 Internet function – This is to ensure electronic transfer of documents and help control fund transfers

 

Encryption – Security of sensitive business data is vital, and a good ERP accounting tool should provide it.

 

Automation  – Ability to get rid of manual data entry and replacing it with automatic data entry that reduces human labor and errors

 

Updates – Constant automatic updates feature a must-have. It is a handy tool to inform the user when their tax reporting or other financial practices are due.

 

Scalable – It should be an enterprise ERP with an accounting option that should be easily upgraded to include a newer version, new users, new business data or transactions, and more.

 

Mobile compatible – In this era of technology, accountants and finance professionals need a software program they can monitor from anywhere anytime they want

 

Bespoke – A dependable ERP accounting system should be easy to customize to meet your organization’s needs. If you want to add more capabilities, the tool should support that. 

 

Integration– It should be a single platform capable of sourcing transactional data from different business processes and storing it in a central location. 

Benefits of ERP Accounting System

There are pronounced differences between a business with standalone accounting software and another with an ERP accounting systems software The latter stands a chance to perform more productively and profitably than the former. When a business runs an enterprise resource planning program with an accounting module, it can expect the following benefits:

 

Easier decision-making based on accounting and financial needsAn integrated top ERP accounting >software provides access to accurate and relevant business data. In line with this data, accountants and finance experts can make better budgets and allocate costs appropriately. 

 

No more duplicate data entry errors Consistency of data coming from various sources can be achieved through software. What’s more, identical mistakes in the data entry process can be avoided. 

 

Automation of workflows. ERP ensures that the entire business processes are done automatically rather than mechanically. By eliminating much human labor, the software

 

Create accurate and reliable financial statements Financial reporting is essential and mandatory for companies. When using ERP with an accounting and financial module, you can track financial data from across the organization and use it to generate accurate financial statements. 

 

Generates real-time updates.Generates real-time updates. As an accountant, you can benefit a lot from a software program that constantly updates you on every economic activity that happens. ERP plus an accounting package tool provides real-time updates to help you monitor, measure, and manage various things, including revenues and expenditures. 

 

Adequate data security. ERP in accounting information systems can ensure top data security. Suppose it is a system from a trustworthy manufacturer. In that case, it will contain a multi-layer security feature that will help you store data and require users to access it only if they are authorized. It keeps the system secure.

Key modules of Accounting Software

To understand how to use ERP accounting software, you should first know its key modules. These include the following:

 

General ledger – Any accounting solution should have a general ledger. An enterprise planning program with an accounting option has it too. It is for managing all financial operations.

 

Account Receivable –This has the power to show you every payment that has been made and all pending payments to simplify invoice generation. 

 

Account Payable – This sub-ledger shows all the monies that you are sending outside your organization. It allows you to monitor all invoices and to pay instantly for new purchases. Account Payable can stop the business from making the mistake of paying for things twice or skipping a payment date. 

 

Asset management – This feature is necessary when a business is big and has a lot of tangible assets and commodities. Each asset’s life cycle is easy to follow when you have an ERP accounting module with an asset management capability. 

 

Payroll – This one can help an accountant do computations for employees’ salaries, taxes, leave payments, travel costs, and other staff expenditures. 

 

Audit – Auditing is an irreplaceable and crucial accounting procedure. Thus, it would be best to have an ERP accounting module with an analytics and audit feature.

ERP Finance System

ERP finance system definition This is a module in the all-purpose Enterprise Resource Planning Software. It allows you to generate accurate financial reports and future projections for the shareholders. In most cases, it forms part of the accounting system. Thus, you will find ERP for finance and accounting on the market. 

Key Features of ERP finance system

When you go window shopping for ERP solutions make sure you select one with a finance management module. Whether combined with accounting or not, the finance application should consist of the following features: 

 

A profit tracker – This feature is crucial as it will reveal overall business performance in terms of profits. It will indicate precisely where most profits are arising. 

 

General ledger management –A financier will need it to track assets, liabilities, income and expenditures, capital expenditures, inventory management, and so on. All these in one location can simplify the detection of errors and fraudulent activities.

 

Fixed asset management – This is necessary to help you control your tangible assets, calculate depreciation of assets, compute and pay taxes for existing assets, and meet your compliance requirements.

 

Risk management – This tool is necessary as business operations are susceptible to all manner of risks. With this function, you can project risks and develop survival techniques to deal with actual threats. 

 

Reporting and analytics – This tool will provide real-time data graphs to help you make better decisions about your business money. 

 

Multiple currencies management – This tool will be helpful if your organization deals with worldwide operations. It will do currency conversions to help speed up various transactions in different currencies.

 

Tax management – This particular tool should support tax reporting and tax auditing functions. 

Benefits of ERP finance Software

Why would you need an ERP finance module?

 

It can help you generate accurate and transparent financial data for the stakeholders

 

It can improve productivity by eliminating human errors that can take ages to correct

 

You can enhance budgeting and forecasting through the analytics and reporting tool.

 

Enjoy continuous financial monitoring as monetary transactions happen

 

Minimal data entry errors can save much time, a resource you need in other areas of your business

 

Enjoy continuous financial monitoring as monetary transactions happen

 

You can avoid missing payments through the accounts payable tool

 

You can avoid losing money via the accounts receivable tool

 

You can track what’s happening in every business section as financial accounting ERP is an integrated system. Just check the General Ledger

How to select the right Accounting & Finance Software?

The right software for accounting and finance can be easy to select if you know the factors to consider. It would be best if you focused on the following:

 

Come up with a list of the features you require in your accounting and finance software program. 

 

Consult your accountants and finance experts to know the features they would recommend.

 

Select important add-on features. Read software descriptions to know the additional features it has. You don’t need all of these. So select wisely.

 

Compare your budget vs. the actual cost of software online. Select an ERP product that suits your budget and contains the essential features.

How to implement an Accounting system?

Now you have bought a software system for your business. Next, you will carry out the onboarding process, which is all about implementation. Do the following: 

 

Select a suitable implementation team and have a team leader

 

Get support from everyone in the organization by informing them about implementing the new software and why and seeking their feedback.

 

Test the architecture of the software before rolling it out.

 

Roll out the software in a controlled way. For instance, you can release it to one department first and monitor its performance. If it’s good, release it to the following department. In Short, roll it out in separate phases.

 

Offer your employees enough training and tutorials so they can learn how the new system works.

 

Has the system customized based on your vendors’ remarks while ensuring it still meets overall business needs? 

Key Difference between accounting and finance software.

The erp accounting module will help an accountant capture daily transactional data and save it in various ledgers for easier bookkeeping and periodical release of financial statements like balance sheets and profit/loss accounts. The finance module of Erp will help the financial analyst plan, direct, monitor, organize and control the monetary resources. They will specifically use past and current financial data to project future cash flows. 

Why distributors are migrating to a Cloud-based ERP accounting system.

Cloud computing makes data and software accessible on the internet. Distributors can access it anytime they want using any internet-enabled device. As the books of accounting are maintained online, they can be accessed via a web browser or a mobile app. Distributors are ever on the move and can benefit a lot from using an ERP accounting information system that can be accessed from anyplace anytime. Besides, every authorized user in a distribution chain can access the accounts online.

What is an ERP system in accounting?

Is there a difference between accounting software and ERP? Are you better off using both separately or just the ERP? In ERP vs. accounting, ERP is helpful because it represents everything that happens everywhere in an organization. Accountants need this data to do bookkeeping and create periodic financial statements that financial analysts need during budgeting and forecasting. When using a standalone accounting system, they need to get the data personally from each department. On the other hand, if their software is a module in the ERP, they don’t have to get in touch with other department leaders to ask for data. It will be accessible to them and anyone who is authorized to use the ERP.

How does ERP help in accounting?

An ERP application  is vital in accounting. It can help accountants in multiple ways, including managing payments, allocating costs to different production activities, budgeting, and estimating capital requirements and management. It eliminates manual handling of data, which reduces human errors that can be costly to remove. They can use it for tracking profits and losses as well as support invoicing and cost analysis.

Conclusion. If you are in wholesale distribution business, you have wide range of options to select ideal technological platform for your ERP accounting and finance system. Most of the modern ERP such as Ximple ERP for Wholesale Distribution offers On-Premise and cloud based Financial and accounting Software (SaaS).

In an On-Premise Accounting and Finance system, the Customer manages both Software and the technology infrastructure (Hardware). This level of control enables the Customer to customize the software to suit their unique accounting processes. This flexibility comes at the cost of managing the unfamiliar terrain of managing the IT infrastructure.

In a Cloud based Accounting and Financial system, the software vendor manages, both software and hardware. The Customer can configure the Accounting and Finance Software to meet their wholesale distribution business requirements. There is limited flexibility in customizing the application to meet the unique business processes. In some cases, the Customer will need to modify their business processes to suit the operations supported by Software vendor..

The main benefits of Cloud based SaaS Accounting and Finance Software are reduction in cost and complexity of managing the IT Infrastructure. Irrespective of Cloud or On-premise platform, the key is to understand the critical business requirements and ensure that the Accounting and Finance system that you choose can quickly meet those requirements.


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ERP Consulting

Introduction: Wholesale Distribution Management Challenges: Need for ERP

If appropriately managed, a wholesale distribution business can be very lucrative. It can grow fast and expand its operations to new regions. On the contrary, poor management of a wholesale distribution business can lead to losses that eventually cause business closure. Management can get more complicated as challenges increase. Below challenges faced by Wholesalers and distributors could be mitigated by leveraging ERP Consulting, Selecting the next generation of ERP Software , and implementing Cloud-based platform Services: 

 

 

Massive competition from large manufacturers with the ability to do direct distribution of goods.

 

 

Retailers who depend on wholesalers and distributors shorten their delivery dates and enforce stricter penalties on those who don’t adhere.

 

 

Fluctuations in fuel prices are happening faster than ever before, making it hard for some distributors to cope. Wholesalers have to transport goods from point A to point B, and if the cost of fuel goes up, their overall expenditures go up as well. 

 

 

Wholesalers and distributors deal with warehousing, handling, and transportation of goods. All three roles are super sensitive as goods can get stolen or damaged, leading to losses. Moreover, system failures can offer sneaky workers a chance to pilfer some items. 

Although ERP cannot eliminate an issue like changing fuel prices, it can improve your management role. As it is an all-encompassing tool, you can get real-time views of what’s happening in various departments: Accounting and finance, inventory management, warehouse management, sale and marketing, and project management, among others. As a result, you can avoid costly human errors as well as cope with unscrupulous workers.  

Table of Content

 

 

ERP Consultant: What does ERP Consultant do types of ERP Consultants…Functional consultant, technical consultant, Qualifications, experience, and benefits

 

 

ERP Consulting Needs for a Distribution business?

 

 

How to Choose an ERP consultant for your distribution business? 

 

 

How ERP Consulting can help distributors to find the Right ERP Software

 

 

How much does ERP consulting cost?

 

 

ERP upgrade consulting.

 

 

Legacy ERP migration consulting 

 

 

Distribution ERP Consulting

 

 

Conclusion.

ERP Consultant: What does ERP Consultant do types of ERP Consultants…Functional consultant, technical consultant, Qualifications, experience, and benefits

 

What does an ERP consultant do exactly? An ERP consultant plays several roles. Their primary role is to conduct thorough research and suggest solutions to help improve the business’s operations that have hired them. Other duties include:

 

 

Helping organizations select the best ERP software tools 

 

 

Assisting companies implement and start using ERP systems

 

 

Helping businesses using legacy software systems upgrade to ERP solutions.

 

 

Assisting a company’s technical team deal with change management 

 

 

Working with ERP software systems. 

Independent ERP consultants carry out different tasks when hired or outsourced. They are competent in other areas and come in two categories. These are:

Functional consultants 

A functional consultant is also referred to as a business consultant. Their level of qualification is higher as far as understanding ERP software systems. Their functional knowledge is broad enough to help teams implement new ERP software, migrate from an older system to new ERP software or upgrade an existing ERP system. They understand how various business processes work together between different modules and can get your business the most suitable solution.
So far, you know the leading ERP functional consultant roles and responsibilities.

Technical consultant 

This professional is different from an ERP professional in that they are trained to offer technical support. They are the ones you need to hire when your systems stop working correctly as they can figure out the cause and remove it. Besides eliminating bugs and other glitches, an ERP techno technical consultant understands the process of installing and improving existing systems’ technical aspects. They are requested to install new ERPs or rectify old ones by different businesses with varied approaches and roles, and they can do it. 

If you are going to select an ERP consultant, decide on the type you want first. Then check their qualifications to determine if they are fit for your business. Things to look for are: 

 

 

Top-notch listening and communication skills

 

 

Ability to teach flawlessly

 

 

Writing creativity and precision.

 

 

Thorough technical skills and knowledge

 

 

Industry-specific qualifications

 

 

Excellent social skills

 

 

Strong analytical skills

 

 

Leadership and teamwork skills.

ERP Consulting Needs for a Distribution business?

Did you know that ERP consulting is a critical professional to ERP implementation success?
Consultancy gurus know everything concerning ERP software and can oversee an implementation process for SMEs and large businesses. When looking for a consultant to help you, consider that they can:

 

Simplify a very complicated ERP project. It is easy to get overwhelmed by an ERP project as it encompasses all areas of your organization. To stay on a budget, get a consultant to offer guidance and remove complexities from your project’s technical and functional aspects. 

 

 

Offer vast knowledge. As a small or medium-sized business struggling with business capital, you may not afford to hire a qualified ERP employee. You are the best outsourcing a third party with a strong track record and proper certification.

 

 

Offer industry-specific ERP help. They can help with selection and implementation help.

 

 

Help your organization reduce risks. They can do this during the ERP implementation process and help you avoid high error correction costs in the future. 

 

 

Offer consistent support. Soon after completing ERP software installation and it is up and running, a consultant can proceed to offer consistent software support.

How to Choose an ERP consultant for your distribution business? 

Concerning how to choose an ERP consultant, there are a few factors to consider. The first one is the type of consultant you want. Do you need a technical or a functional consultant? As many people offer ERP consultant services online, you should call a few and screen them based on a selection criterion that works for your business. This criterion should be created based on overall organizational ERP needs, current business resources, and organizational culture, among other things. Ideally, you want to outsource someone with:

 

 

Years of experience in their consultancy role

 

 

Runs a financially stable service business

 

 

Has been recommended by your friends.

 

 

Specializes in installing ERP for your sector or niche

 

 

Matches your business culture

Management Consultants

A management consultant can work with your company to enhance its performance through expert advice and problem-solving skills. Management consultants can check problematic areas and offer excellent solutions. They are an asset in guiding and advising the top management about big projects like ERP implementation projects

How ERP Consulting can help distributors to find the Right ERP Software

To get software that can fulfill your business needs, hire top ERP consultants from your region or any country in the world. The outsourced professional can do the following on your behalf:

 

 

Define and analyze your business processes, weaknesses, and strengths

 

 

Assess your current technical infrastructure and determine if it’s ready for ERP software adoption

 

 

Estimate the total cost of introducing ERP software role

 

 

Oversee employees change management

 

 

Create a logical ERP implementation plan

 

 

Measure benefits of the new system against the metrics your business has set

 

 

Select a software tool that is going to give your unique business competitiveness on the market. 

How much does ERP consulting cost?

One primary consideration that your enterprise should make before executing ERP is the ERP consultant salary. Mostly, the salary is counted based on the consultant’s time investment. The longer the ERP process, the more you are going to pay the consultant you will choose. Usually, consultants publish their hourly rates online. To compute the actual money you will spend, multiply the project length in months or weeks with a consultant’s hourly rate. Also, the type of consultancy you need will affect the hourly rate. For instance, an Oracle ERP technical consultant might charge a higher hourly rate than a sage consultant. The location of your consultant matters too. For example, an outsourced ERP expert from India may have a lower hourly rate than a company offering ERP consulting USA services.

ERP upgrade consulting. Migration or Replacement.

Perhaps you have already established a properly running ERP software system. Now you want to update it so that missing things can be added and wrong items can be removed. You can plan your upgrades as a preventative measure, and therefore you will do them voluntarily. This can be beneficial because errors that were about to happen could be found and solved. New software modules can be added. Another way is to conduct involuntary upgrades and, in this case, having no other choice. A severe problem must occur before a forced upgrade, also called a forced upgrade. For instance, your software provider might withdraw their support service for an older system and force you to upgrade. Either way, you will need the assistance of the best ERP consultant.

Legacy ERP migration consulting 

Do you own a legacy software system? If so, you should update the system with the assistance of a consultant. They will assist with the migration of data from your legacy system to a modern cloud-based ERP system. Their work will entail the following duties:

 

 

Data migration from your old legacy system to the new ERP system

 

 

Assess your current infrastructure and suggest ways to make it ready for a cloud-based solution

 

 

Oversee change management to ensure that employees adapt themselves quickly to the new solution

 

 

Carry out the entire customization work to ensure the newly shifted system works flawlessly

 

 

Provide resilient support during the migration process.

Distribution ERP Consulting

Distributors endure unique challenges, especially if they have many distribution channels. With a perfectly integrated ERP software tool, they can optimize their supply chains and overall operations. To know the best software to select, then select the best ERP consulting group.
It will identify, create and implement an ERP solution that will meet all your predetermined business needs.

Conclusion

We sincerely believe and hope that you have learned something about ERP consultancy from us. When the time to install new ERP software, upgrade existing ERP software, or shift from a legacy system to a new ERP system comes, you will know to locate the best software consultant for your organization. 

 

Ximple has the expertise to facilitate digital transformation in the Global Wholesale Distribution business. Our experienced Distribution ERP consultants can compliment your internal IT Staff on replacing or migrating Legacy ERP Software with a modern Cloud-based ERP system. Ximple team can help you evaluate technological options available in the market, offer innovative software solutions, and suggest ways to drive productivity and reduce inventory and stay competitive.


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ERP Implementation Guide for Distributors

COVID pandemic has accelerated Digitization, Digitalization, and Digital Transformation plans for many Wholesale Distributors. Wholesale Distributors have suddenly understood that Technology can improve efficiencies, reduce inventory and profitability. Technology no longer looks esoteric.

The last ten years have seen many technologies and ideas mature from the Proof of Concept (POC) phase to become ‘Industry Ready.’ Technologies like Artificial Intelligence, Remote Collaboration, Machine Learning, Robotics Process Automation, Industrial IoT, and Blockchain have demonstrated their value to the early adopters who made these technologies a part of their day-to-day activities. The information and intelligence provided by these technologies have added value to the adopters.

As Wholesale Distributors gets ready to implement Industry 4.0 technologies, it’s essential to upgrade or migrate their Legacy ERP to Cloud-based ERP. Next-Generation Cloud ERP offers distributors many challenges and opportunities. It important technological decision markers understand ERP implementation processes. Here, we take the opportunity to clarify all concepts related to “ERP Implementation.”

Table of Content: Wholesale Distributor ERP Implementation Guide

 

01. What is ERP implementation?

 

02. ERP implementation Phases

 

03. ERP Implementation Methodology. 

 

04. ERP Implementation Benefits

 

05. ERP implementation Guide in Distribution industry considerations for large distributors implementing a New ERP software 

 

06. Considerations for small and medium distributors implementing a New ERP software

 

07. How to Avoid ERP implementation failures

 

08. Guide for Successful ERP implementation 

 

09. Conclusion.

What is ERP System Implementation? 

First, ERP refers to Enterprise Resource Planning. It is business software for automating various business departments. There are industry-specific ERP software versions. Once you decide to obtain this software, go for an Industry-specific ERP tool. For instance, choose distributor ERP software if you do distribution business. After locating the best software provider, the next big step is implementation. It is the process of installing software, configuring options and settings,

and migrating data from your old software systems to the newly-launched ERP. ERP implementation process consists of different phases that are fulfilled with specific methodologies. 

ERP Software Implementation Phases

The process of adopting ERP consists of different phases or steps. You should not entertain failure because you will require more of your resources to correct it later on. Without further fuss, here are ERP implementation phases:

Phase 1: Project authorization 

At this point, a decision to buy ERP has been made, and it’s pending approval by the senior management. Once the CEO approves the project idea, they will ask the Chief financial officer to sign the contract. Their signature will authorize the purchase and implementation of a new software tool. 

Phase 2: Official launching of the project

In this phase, the project begins officially. The company chooses the in-house team and external professionals that should oversee and carry out the entire process. 

Phase 3: An analysis of actual requirements from the ERP 

In this step, the team responsible for the entire term the process would take identifies the things the software should help the business do. 
At the end of this phase, the team should already have an official report or document that requires approval and signed by top management. 

Phase 4: The new software design is agreed upon

After gathering all the requirements, the next thing is to customize the software to ensure it meets every need. Sloppiness in this step is one reason why ERP implementations fail. This role is played by the expert developer you chose in Phase 2. They must choose the most suitable type of programming to do to meet the requested needs. The in-house team leader will then alert the top management about the developer’s decision for their approval.

Phase 5: The new software is configured

This refers to the actual installation and configuration of the software. This step requires software engineers to slot in the software every requested need. The developers should create some of the most crucial documents for your company, including a purchase order form. 

Phase 6: Testing the software after setting it up

User acceptance testing (UAT) is a very critical stage of a successful ERP implementation process. The software has been designed, installed, and configured to suit the organizational needs. The UAT phase is imperative because it entails test-running the software. Testers should be selected carefully, and some of them should be IT professionals. Please don’t make the mistake of choosing novices as they will miss some essential software errors or viruses. This will cost you a lot of time and money to repair later on. 

Phase 7: Training your employees

After the testing phase is over and everything looks great, the next thing to do is train your employees. They will be using the software, and it makes sense to orientate them at this point. Staff that plays a role in distributing goods should be trained to use the new software tool. 

Phase 8: Software integration and migration

If you have other software tools on your premises, they should be able to work harmoniously with your newly installed ERP. This step may also be done in phase 3. It is all about pinpointing software tools that can be migrated to the ERP system. Data migration will entail shifting the organization’s data from the old system to the new ERP software. Data can be shipping orders, customer forms, accounting data, sales reports, and so on.

Phase 9: Launch your New ERP system

Everything has been done by now, including project management. The software is ready to go live. This phase is super important as it marks the beginning of the better performance and higher efficiency in every department. The software implementation team should hang around for a while to help employees get used to using the new software. 

ERP Implementation Methodology

If your ERP execution process fails the first time you try it, many resources will be wasted. It will take your business a lot of time to recover the lost capital. To prevent this, choose the best ERP implementation approaches. The main ones are 3:

Phased methodology

In this one, a developer focuses on executing software in phases. They choose one phase or department and shift all their attention to it. Once they finish with that one, they select the following department. This approach can make the implementation procedure longer than necessary but pose fewer risks and enable quick correction of errors. It also provides the team experience it would need in the subsequent phases.

Parallel methodology 

In this one, developers implement the new ERP software while letting the older ones run. This parallel approach reduces implementation risks as a critical issue arises, and the business can continue running its older software system. A similar approach is associated with technical complexities and high costs.

Big Bang methodology 

Developers deploy software for the whole organization at once. Unlike the other two methodologies, the big bang ERP implementation approach allows developers to deploy the tool across business departments or functions. This is the most complicated methodology and requires adequate planning and expert guidance to avoid costly mistakes. It is, however, the best when you need to save deployment time and overall cost.

ERP Implementation Benefits

There are several advantages you can get from implementing ERP software. They are briefly outlined next:

 

Once installed and configured, ERP will get rid of repetitive procedures and boost efficiency.

 

ERP can make every department more productive by automating tasks that need a lot of human time and labor. 

 

ERP software is customizable. It can be altered to suit specific business needs.

 

The tool can remove administration and operation costs.

 

It is scalable.

 

Enables collaboration between departments

 

Company data is kept in a single centralized database.

ERP implementation Cost

here is no standard ERP system implementation cost for every business. This is because every business is unique and has its own needs. To discover these needs and budget for them, come up with a plan. There are two pricing models too, and each can influence the overall cost. These are:

On-premise system or perpetual licensing model

our business will host the new ERP tool on its servers. If yours is a large business, the on-premise system is the best pick as you already have servers and other essential infrastructures. With this, the license is yours totally and forever. The initial setup cost will be hefty, though.

The Saas (Cloud ERP) subscription model 

Also called a cloud-based system, this model is the best for small and medium-sized businesses. The software will be paid for in small installments every month and will never indeed be yours. However, you can use it flawlessly and safely as it is cloud-based. It is the cheapest to implement of the two. 

ERP implementation in the Distribution industry

The first thing that the wholesale distributor ERP software could do to your business is to keep it ahead of the competition. Once you automate your distribution function, it will become more efficient and reliable. Goods will arrive at the desired destinations quickly, satisfying all customers. Distribution software encompasses all areas of your business, allowing you to have a single platform that meets everyone’s needs. When it comes to choosing ERP implementation types, you should be guided by your operations’ size and the amount of capital you have. If you are already a large business and can take a considerable risk, choose the big bang deployment method. Otherwise, the most advisable approach is the phased methodology. 

Considerations for small and medium distributors implementing a New ERP software

As a small and medium business, your new ERP should help streamline and improve your operations. As your budget is tight, you can make mistakes when selecting and implementing your ERP tool. Your employees are few and might not have adequate IT expertise to supervise an ERP implementation process flow. So you need to outsource the role to a third-party expert to help you come up with a good implementation plan and team.

How to Avoid ERP implementation failures

Next, find out how to avoid failure while implementing new ERP software:

Get top management’s approval and consistent support to avoid wasting business resources.

There are three principal ERP execution methodologies. Select one based on your preparedness for taking risks to resist the failure of the whole process.

Waiting to test-run a finished process and correcting errors when they are too costly to get rid of should be avoided. Correct in the course of the lengthy process.

Plan for long-term needs as ERP implementation is an expensive procedure to repeat all over again. 

Successful ERP implementation 

If you want to do a successful process, follow the simple steps listed next: 

Define the scope, needs, and vision of ERP software. Use a team of experts.

Choose a complete application developer for the installation phase

Select your application analysts very carefully as they are the ones responsible for successful data migration. 

Use a quality assurance testing engineer for the User Acceptance Testing phase. 

Initiate change management so carefully to help the employees accept change. It would be best if you used training tools that work.

Select a methodology that suits your business type, size, and financial stability.

Offer ongoing support to ensure the implementation process ends well.

Conclusion

During the implementation of an ERP software program, wholesale distributors should aim for excellence. Errors should be avoided entirely as they are expensive and time-consuming to correct after the software goes live. If necessary, outsource the task to the right team of experts if you are a small company with less-experienced and few IT experts to keep problems in implementing ERP systems away.


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Distributor ERP Selection Guide

The digital revolution has changed the Wholesale distributors Business. Now, Wholesale Distributors are evaluating ways to adopt the Next generation of Cloud ERP and other related Technology faster.

Over the last ten years, many new technologies have come out of the labs and have become ‘Wholesale Distribution Industry Ready.’ Good examples of emerging technologies are artificial intelligence, Blockchain, machine learning, cloud computing, Industrial Internet of Things, and robotics process automation.

These technologies offer value propositions that Customers cannot ignore anymore. Organizations are designing their Digital Transformation strategies that will provide the technology roadmap for the future. Besides technological innovation has demonstrated that Technology is scalable and mobility is real, and both of them help increase revenue, reduce costs, and improve efficiencies. Also, the market for new technologies will explode over the coming years. In the next five years, it is estimated that the growth of the global cloud computing market will have doubled.

Table of Content Distribution ERP Software, Selection Guide: 

 

What is Distribution in a business?

 

What is Distributor ERP Software?

 

Who exactly needs distributor ERP?

 

Why do you need Distributor ERP?

 

What are the benefits of distributor ERP software?

 

Consideration for large distributors choosing a New ERP Software

 

Consideration for small and medium Distributors choosing New ERP

 

What features should you look for when selecting distributor ERP?

 

How can you assess the best distributor ERP?

 

What is the cost of distributor ERP?

 

How can you build an ERP budget?

 

Conclusion

• What is Distribution in a Business?

Among the most important business processes is distribution. A business can either choose direct or indirect distribution channels. Channels connect the manufacturer and the end consumer. Direct distribution, also called zero-level, is the shortest and quickest channel as consumers get goods directly from the manufacturer. Indirect distribution entails intermediaries like wholesalers, distributors, agents, and retailers. It is not just long but complicated too. This is why you need distributor ERP software and get familiar with ERP selection.

• What is Distributor ERP Software?

This software is a special tool for handling all your distribution activities. As a distributor, you will make more money if you satisfy your customers by delivering their goods on time. Without thorough tracking of everything that happens throughout your distribution supply chain, an error could occur. A single error that is not discovered early could delay the whole shipment and cause customer dissatisfaction. That’s when distributor ERP becomes a handy tool.

Besides automating every activity in a distribution channel, the software can make you look and feel like a professional. Software is a sure way to increase the speed and efficiency of your distribution service. You can handle large orders with ease no matter their frequency.

• Who exactly needs distributor ERP Software?

Distribution ERP system is meant for any person that is in charge of handling inventory, warehousing, and/or logistics. The one who fits this description well is a wholesale distributor. It also suits large retail chain stores and retail shops. While it is largely preferred by those who handle logistics, this software is all-encompassing and can meet the needs of those responsible for warehousing, accounting, sales and marketing, project management and inventory management. All you need to know are ERP selection steps.

• Why Do You Need ERP Distribution System?

You basically require distribution ERP software to automate your distribution supply chain. The tool offers functionality for all business processes. It works as a single platform and database. With ERP you can identify a problem and solve it before it ruins the whole distribution procedure. Any issue can arise, including your delivery truck developing a mechanical problem or a flat tire, or skipping an important delivery date. With software, this cannot happen as it’s going to send an alert every time there is an issue. If you don’t know how to select a new ERP system, continue to read this guide as this can save you thousands of dollars later on.

• What are the benefits of distributor ERP software?

If you are a distributor looking to enhance your distribution service, you need ERP software. But, why are erp systems worth their cost? These systems can be extremely beneficial if selected wisely. They can offer these advantages:

 

 

Creates a central repository system that handles every process and task in the distribution process.

 

 

Boosts customer satisfaction and ensures that their confidential information is stored safely in a central database.

 

 

It can quicken the tasks done by your sales force, logistics team, warehousing team, accountants, as well as other people taking part in the distribution of goods.

 

 

It creates reliable financial reports that managers can use to track the performance and success of your distribution channels.

 

 

It can get rid of data errors and repetition. Your distribution channels involve different activities and processes. If you handle them with a single ERP software tool, you can eliminate erroneous data.

 

 

Can lead to revenue growth. If your indirect distribution channels run effectively, it means that everyone including the final consumer will be happy with your service. When customers are happy, they will order more and spread the word about your business. This can translate to higher sales. What’s more, the software can help you manage different resources in a cost-effective manner and this will reduce loopholes through which you can lose money.

 

 

Better stock management. As a distributor, your job entails ordering goods in bulk from a manufacturer, keeping them in a warehouse, and distributing them to various customers as soon as an opportunity comes. When you track your inventory with software, you can see what you ordered, how much stock is left, and when you need to replenish your stock. The software can ensure that no delivery dates are missed because of a lack of stock.

• Consideration for large distributors choosing a New ERP Software Package

Are you a large-scale distributor? If so, your business is complex and has bigger legal requirements than an SME(small and medium enterprise). Maybe you already have global operations or are planning to start them. When it comes to how to successfully select an ERP system, you have to be vigilant and thorough.

The entire process of obtaining and implementing software should take at least a whole year. This being a complex process, you should consult an expert who can help you select and implement software. As for the features, consider standard features and industry-specific features. Standard features must include:

 

 

HCM or Human Capital Management

 

 

Financial Management

 

 

Customer Relationship Management or CRM and Sales Force Automation(SFA)

 

 

Supply Chain Management or SCM

 

 

Contract Management, Document Management

 

 

Material Requirements Planning, Distribution Requirements Planning and Capacity Requirements Planning

 

 

Enterprise Asset Management, EAM

 

 

BAM(Business activity monitoring)

 

 

Business Intelligence or BI

 

Enterprise Performance Management(EPM)

Lastly, your software should be easy to merge with existing enterprise software tools like QuickBooks.

• Consideration for small and medium Distributors choosing New ERP Software

As a small or medium business, your ERP software requirements are manageable. You are the only owner and boss. There are several software tools that are designed with your type of business in mind. The essential thing to focus on is how to select the correct erp system. Consider:

 

Available resources – SMEs are known to have financial struggles. If you are not stable yet, you may not implement ERP software at this point. Alternatively, you should select a simpler ERP system that could suit your current budget.

 

Features – As an SME that is seeking growth via the assistance of ERP, you should buy a system with helpful features. At the very least, it should have financial management, inventory management, sales orders, and analytics features.

It is necessary to involve your entire staff in decision-making processes concerning the selection and implementation of ERP.

• What features should you look for when selecting distributor ERP Package?

Regarding features, make sure that your favorite software has all you require to simplify your distribution procedure. Usually, most people search for the following ERP software features:

1) Sales order management

The software should support sales functions like sales order processing, sales order inquiry, sales order reporting, shipping management, customer pricing, and self-services for vendors and customers, and return policy among others.

2) Financial management

You should know how to select an ERP package that supports financial management activities. It should be a tool that accountants can use to do accounts payable, accounts receivable, budget forecasting, financial reporting, debt management, order billing and invoicing, asset management, payroll management, and more.

3) Customer relationship management

A good distributor ERP gathers necessary customer data and stores it in a safe database for future retrieval. The CRM feature it should support promotion management, contact management, sales force management, quotes and estimates management, inquiry management and so on.

4) Warehouse management

Functions relating to warehouse management can range from picking procedures to demand correlation, shipping management, tagging functions, multiple warehousing, outbound processes and slotting optimizations among others.

5) Inventory management

Another feature to recall when considering how to select ERP solutions is inventory management. As your customers don’t expect to miss an item they want, then make sure to select software with an inventory management feature. This feature should support various things, including inventory and stocking costs, requirement planning, demand forecasting and inventory availability among other things.

6) The Procurement management

As a distributor, you need ERP software that can offer you full procurement capabilities such as purchase management, vendor management, purchase orders, bid management, procurement planning, and multiple warehousing among other processes.

7) eCommerce for distributors

As a distributor, you are involved or will soon be involved in B2B eCommerce. When that time comes, you will require eCommerce for distributors, which is a type of software. This will help you connect with other buyers better. Instead of buying a single software tool that does just one thing, you should know how to select the right erp software for your business. ERP will have an eCommerce for distributors function and all the above; so, it is cost-effective and dependable.

• How can you assess the best distributor ERP?

One thing you will discover when searching and selecting ERP software for your business is that there are several options. To ensure that you end up selecting the right tool, you should carry out an assessment of each in a sensible way. Here is how:

 

Create selection criteria of erp by writing a list of ERP needs for every department you have in the organization.

 

Assess your workflows to further understand what will be required by everyone so as to select ERP that can address every need.

 

If you need professional advice or help, call an ERP provider you have been thinking of buying the software from. You can even invite them to come over and have a talk with your entire team.

 

If the consulted ERP provider is able to, ask them to demonstrate how their software can transform your distribution channels for the better.

 

Assess your team’s training needs and the process of implementing software. This is to know if you need to consult outside helpers or can do it in-house.

Choosing ERP Software

When it comes to the selection of ERP software, you should consider different factors. These are:

 

Business goals and needs

 

Business expansion and growth goals

 

Redundant areas of your business that can be replaced with software

 

Marketing goals

 

Current technology and scalability plans in future

 

Your budget and resources as you want to be totally sure that you can afford ERP

 

You in-house technical team to help with software installation and assess if an outside consultancy will be required.

• What is the cost of the distributor ERP System?

As you decide the best ERP to get for your distribution business, focus on the cost. After all, you can only get the software you can afford with your current finances. The cost is so important that you should fully understand this: how much does it cost to implement an ERP system? To compute the total cost of obtaining your ERP, consider these factors:

 

Who will have to use this too and how many are they?

 

Do you get several orders daily or do you need more marketing effort to attain this?

 

The cost of the software itself and licensing fee

 

Cost of implementation

 

Extra customization cost

 

Maintenance cost

 

Upgrading cost

 

Employee training cost

 

Cost of obtaining support

• How can you build an ERP budget?

You are about to buy new ERP software and this is great. However, are you aware of how you can control your overall business expenditures in the next few months or years? This will be difficult, but this is how to budget for it:

 

Assess the overall cost of obtaining software once again.

 

Assess the ERP’s cost savings in the long run.

 

Do you have any cash-flow issues now? If not, can you project one in the near future? You are doing this to decide if borrowing is an option.

 

Involve management in deciding if your budget deserves approval. If it is approved, then publish it for all to peruse.

 

Once you begin spending, revisit the budget plan to see if your estimations and actual costs tally. There will also be planned activities that happened late than estimated. Perhaps you had planned to borrow but got a windfall and doesn’t require a loan anymore. All these changes should be made to the budget.

 

Keep updating your budget as you experience actual costs as this data will be needed by accountants and financiers at the end of the accounting year.

 

Finalize and review your budget when you successfully implement your ERP software.

If you don’t know where to begin, you can get an erp budget template online as it will simplify the process.

• Conclusion

Distributor ERP software is a must-have if you want to help your business perform better and enhance customer relationships. Single software can have a bunch of helpful features, some of which we discussed in this guide. Therefore, it is cost-effective to buy one software tool that does everything involved in distribution rather than getting one tool per activity. Now you know a few approaches for selecting erp systems.

The coming decade looks very promising for the Wholesale Distribution ERP market. ERP being the backbone of Digital Transformation will benefit as Companies look at initiating the transformation process. Other than Digital Transformation, there are standalone trends that drive ERP Adoption in the coming years. It’s an exciting time for Ximple Cloud ERP. We continue to make the technology investment to help leading wholesale distributors grow business, improve margins, and compete with digital behemoths such as Amazon and other technology competitors making their way into the wholesale distribution business.


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IBM AS400 ERP SOFTWARE

Here, we will show you IBM AS400 ERP Software, History, Benefits, Differences, Checklist and Challenges with Next Generation Cloud-based Ximple ERP Software.

What is AS400 Software?

AS400 is a mid-range server from IBM. Developed in 1988, AS400 iSeries is a foundation product that more than one hundred thousand businesses use today. Although it is not the most powerful software today, it matches the needs of several businesses. Don’t get confused if you also come across words like IBMi, iSeries, or System i. They all refer to the same thing. IBM recognizes all these names and uses them for branding campaigns only.

The operating system, OS400, also changed names over the years. If you come across i5/OS, or eServer i5 term, the person is talking about OS400. The IBMi system includes a combination of an interactive AS400 database, networking, security, internet services, and storage management abilities. The main uses for the AS400 system are Java application development, web and ecommerce hosting, and data warehousing.

What is IBM As400 ERP? – History, Benefits and Challenges

History

IBM designed the AS400 about 33 years ago. The system was an integrated product featuring hardware and an operating system (software). The hardware was AS400 while the OS was OS400. Over the years, IBM upgraded the hardware and software to keep their mid-range product offering competitive. They also branded and renamed their product to align with the market and their offering. Currently, the hardware is officially called Power Systems and it runs an upgraded OS known as IBM i. The best-selling feature of the as400 computer system is its capacity to match with different applications.

Despite being old, the system is compatible with various applications, including as400 inventory management and accounting software. This is to means that you can run a program made for the original AS400 on a current Power Systems server without necessarily changing anything. Even with the notion that the system is outdated, several companies continue to use it due to this seamless compatibility. IBM habitually upgrades and improves its platform every two to three years. Here is a summary of its history:

1988

AS400 computer system line with OS/400. All programs written for System/34 and System/36 could be shifted to the new AS400. System/34 and 36 were part of the company’s first line of minicomputers launched in 1979 that also included System/3 and System/32

2000

IBM renamed AS400 as iSeries

2006

IBM renamed iSeries to IBM System i

2008

IBM consolidated System I and System P product lines and rebranded merged product offering as IBM power system.

Benefits

Although it is a computer server that was made years ago, the iSeries computer is not dead yet. It has the following benefits:

 

Scalability – Your business can buy the most affordable core server and upgrade to a stronger 256-core later on.

 

Reliability – If you are looking for a server that can offer close to 100 percent uptime, AS400 is the best.

 

Secure – As long as you have your IBMi configured properly it will work safely.

 

Sophisticated – As this is a regularly updated server, it has become more modern and supports various programming languages, including RPG and Java among others.

 

Compatibility – As earlier explained, System I offers amazing compatibility, allowing easier transitions.

Challenges

Although featuring excellent technology, i5 system has its own challenges:

 

Some users have the wrong perception about it. They think that AS400 is obsolete and not worth buying. This is wrong as when it comes to compatibility it is excellent. This is why most companies cannot get enough of it.

 

People who founded and understand the IBMi better are now old and as they retire, they will go with the entire pot of knowledge and expertise they own. Although it may seem old, the system has complicated internal architecture. To prepare your staff, have them read AS400 learning guides and practice with dummies.

List of Major AS400 ERP, Accounting and Business Software

The Accounting and Business software tools that run on IBMi servers include the following:

Accounting

[ 1 ] Ximple ERP for Wholesale Distributor

[ 2 ] American Software Enterprise

[ 3 ] Financial Accounting Software from Arkansas Data Services

[ 4 ] Compu-tech’s Accounting Software

[ 5 ] Gammasoft Executive series

[ 6 ] iSeries Financials from Global Software

[ 7 ] HarrisData ERP Applications

[ 8 ] Infor Enterprise Financial Management

[ 9 ] Infor Infinium FMS

[ 10 ] Infor Lawson Financial Management

[ 11 ] Core information system or CIS

[ 12 ] CIS-LAMP

[ 13 ] Mosaic21 Financial Accounting Software

[ 14 ] NGS Concert Series Financial Software

[ 15 ] JD EDWARDS World Financial Management from oracle

[ 16 ] Integra

[ 17 ] Financial Portrait Software System from Tegratecs

[ 18 ] Unit4 Financials

[ 19 ] Online Business Accounting from Legler Systems Company

[ 20 ] MasterTools by Online Computing

[ 21 ] Open Systems Accounting Software

[ 22 ] S5 financial Accounting System from Sentinel Hill Software

[ 23 ] DS90 (iSeries) Accounting Software

[ 24 ] First Option IBM I (iSeries) Financials from the First Option

[ 25 ] Visual AccountMate/400 version 4.0 (VAM/400) from AccountMate Software Corp.

IS IBM AS400 ERP?

No IBM AS400 is not ERP even though many novice users call it AS400 Enterprise Resource Planning Software. Think of AS400 as an operating system that works as perfectly as Microsoft Windows or Linux. The difference between other operations OS and AS400 is everything in AS400 is defined as an object while other operating systems have files. Windows and Linux understand hardware and software items as files rather than objects. IBM AS400 or IBM iSeries platform is an integrated platform that includes IBM DB/400 databases, hardware, programming & software development environment and OS/400 operating system. Much mission-critical business application and ERP runs on this platform. Leading retailers, distributors, manufacturing and financial institutes uses AS400 for business application as it offers stability, reliability, high performance and security.

What’s different between legacy Software vs Next Generation of ERP

Legacy software systems are offline ERPs. That’s why they are called on-premise ERP systems. On the other hand, the next generation of ERP refers to cloud-based enterprise Resource Planning tools. When comparing the two, you need to pinpoint the differences. These are:

The difference between Legacy ERP and Cloud ERP, the latter offers ease of access. With legacy ERPs, you, the owner, have to lease and maintain them live on your computers or servers. Thus, anyone authorized to use them can only access them on your machines. Conversely, next-generation ERPs are stored on an internet server that you either own or lease monthly. One needs only web browsers such as Safari, Chrome, and Edge to access the system.

Next Generation ERPs have foundations for the future. It has open architecture for future technologies such as the Internet of Things (IoT), Machine learning, Artificial intelligence, big-data analytics, and cloud computing. ERP has core functionalities deeply defined to vertical industries it serves. Such ERPs are SaaS-based, commonly known as Software as a Service. It means that you have to pay a subscription fee to have permission to use the software and hardware it operates on. As it is based on installment payments, your business has to incur an operating cost. On the other hand, legacy ERPs belong to the company that runs them. The software and hardware parts have to be bought upfront, giving the buyer full rights to both. This is where software development consulting firms come in. They are cheaper than a team of in-house IT staff requiring salaries every month.

The cloud-based new generation ERP systems are easier to customize and update. The user can make changes automatically. On the other hand, on-premise, legacy ERPs are difficult to alter and update unless your IT team knows what it is doing. If you don’t have a dependable IT team, you had better use a freelance software developer consultant.

Any internet-enabled device can be used to access a new generation ERP system as all you need is a web browser. Conversely, legacy ERP is only reachable via a computer in your office.

What’s ERP upgrade processes Checklist?

Software migration does not have to be difficult. Here is a checklist:

Come up with a plan to help you do the software upgrade.

Make a shortlist of ERP consultants who can help you.

Select a consult based on their budgets, their track record and their ability to deliver on time.

Create a team to oversee the upgrade process. This team will become the link between your organization and the selected consultancy firm.

Implement the plan you created in the first step with your consultant’s assistance.

What are ERP upgrade benefits?

If you are using a legacy ERP system, it is important to upgrade it to get all the benefits that those who use the cloud-based new generation ERP receive. It is extremely important to upgrade to the latest version to get regular software updates, new features, service packs and more in real-time. An updated system will perform optimally and reduce your workers’ downtime. An upgraded system fosters speed when doing daily tasks and complies with government regulations like ISO, HIPPA, ACA and IFRS among others. As you upgrade to Cloud-based ERP from IBM AS400 ERP, it’s important to avoid any business disruptions.

Why Major Distributors are migrating AS400 ERP to Cloud ERP

These companies have realized that AS400 ERP is a good system but with the legacy syndrome. Once you have it you will only access it on your in-house computers or servers. It is harder to update while on the move, unlike the latest IBM iSeries version for the web. That’s why most organizations are looking to upgrade their AS400 ERP to Cloud ERP. A good consultant knows how to combine the best capabilities of System I with those of modern software.

What’s benefits of APIs, microservices, Java and Angular Technology AS400 ERP?

Software consulting and development entails two kinds of architectures. One of these is microservices and the other is monolithic. The former is favored because it is more modern. In this architecture method, a single big application is split into tiny modular services. Agility and scalability are achievable when every small modular service assists a specified business goal. One code can be reused for a fresh implementation.

Lightweight APIs can be used to facilitate communication between modules. Microservices will enable a seamless integration process when moving from an on-premise system to a cloud-based ERP system. Java, Angular, React, Node, Php, and many other programming languages could be used to implement Microservices & APIs architecture to modernize ERPs. They are easy to read especially when working with complex systems and Jave EE standards match the microservices’ application like JAX-RS for APIs.

How ERP Consultants can facilitate easy ERP migration

Consultants will first evaluate the current status of your ERP systems to determine where your legacy ERP needs changes.

Find ways to transition smoothly while considering your company’s needs and goals. Technological leaders have a dilemma to upgrade to a new version of existing ERP software or migrate to a new ERP. If you intend to put the foundation for years to come, then migration to new Cloud-ERP works better than legacy ERP.

Plan in advance to minimize interruptions. The migration process should the thorough and undisrupted.

Take care to prevent the risk of producing errors or losing data during migration.

Building a strong relationship with consultants and ERP vendor is a must. Both the partners need to be customer-centric to avail world-class support during and after the ERP migration.


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Upgrade your EPICOR’S ECLIPSE & Prophet 21 ERP with Ximple ERP

Here, we will show you data migration steps for replacing EPICOR’S ECLIPSE ERP Software  with Next Generation Cloud based Ximple ERP Software.

How to upgrade EPICOR’S ECLIPSE & Prophet 21 ERP system to Ximple Distribution ERP?

We have expertise and knowledge of ECLIPSE ERP. Our experts can help you upgrade to our Next Generation Ximple ERP Software.

ECLIPSE ERP upgrade to Cloud-based Ximple ERP is a multi-layered, involved endeavor that must be carefully planned and managed. One of the critical layers is migrating your ECLIPSE ERP data to the Ximple SaaS ERP system.

Many wholesale distributors make the mistake of assigning very little importance to this data migration essential task. As a result, they either end up scrambling at the last minute to resolve data display issues or end up with a frustrating implementation mess altogether.

There are, however, steps you can take that will help you make sure the ECLIPSE ERP data migration process proceeds without glitches and gets completed in as short a time frame as possible.

Data migration is the process of organizing, restructuring, copying, and migrating data from your ECLIPSE ERP systems to Ximple ERP Software

1. Analyze Epicor’s Eclipse & & Prophet 21 ERP Data Migration to Ximple ERP Project

Analyzing your ECLIPSE ERP data way ahead of the actual migration is a crucial step. You know that your business deals with different kinds of data.

Master data – the core data that is essential for the operation of your business processes. It is a consistent set of attributes and identifiers that describes your company’s different entities, e.g., customers, products, suppliers, chart of accounts, etc.

Historical data – collected data that is over many years.

Live/current data – all of your recent transactional data. So before you let our ERP consultant embark on data migration, you first need to make some decisions about these data types.

This can be a tricky and complicated process. If your employees had been inputting data into your ECLIPSE ERP using standardized processes all along, then that’s excellent news. If, however, they had created their ways of data entry at some point or another, it may open the door to a whole new set of complications.

You have to define things like,

What data has to be migrated first.

When the data should be migrated, either close or after the Go-live date.

Which historical data has to be migrated to the Ximple Wholesale Distribution ERP system.

The levels of access to users of the data.

Hence it is imperative to overlook the planning and strategizing portion of the data migration to avoid unpleasant and frustrating complications.

2. Review your Epicor’s Eclipse/Prophet 21 ERP Data and Processes

You have to assess whether you need all the data in the Ximple Wholesale Distribution ERP or not. Before migrating your data from your ECLIPSE ERP to the Ximple ERP system. You have to do some spring cleaning.

Review your data and decide on its quality. This is the perfect opportunity to rethink or reassess the ways to record data.

You may also want to consider changing your processes and asking the Ximple ERP implementation partner for recommendations on the stored data structure.

You have to assess whether you need all that data in the Ximple Wholesale Distribution ERP. This is the time to clean up irrelevant information, inaccurate data, and duplication.

In the end, you should have organized, consistent data categories ready to be migrated to the Ximple Wholesale Distribution Cloud ERP.

3. Assign the Right People for Epicor’s Eclipse/Prophet 21 ERP Replacement Project

Apart from ensuring that the Ximple ERP implementation partner is thoroughly briefed with ECLIPSE ERP data before they begin the migration process, an essential success factor for this project is assigning an in-house team or employee that will superhead the process.

Ideally, these people should be long-term company employees who are well versed in the company background and its history with legacy systems.

These employees can surf your company to extract and organize that data into structured charts.

You, in turn, will rest assured that you have trusted people that will make sure to keep pushing the data migration forward until everything is successfully entered the Ximple Wholesale Distribution ERP.

4. Remember that time is of the Essence for your Epicor’s Eclipse/Prophet 21 ERP Upgrade to Ximple Cloud ERP

The way you map out your data migration processes is crucial. It would help if you had a clearly defined timeline that reflects the types of data, the amount of data, the necessary changes to be made, etc.

Do make sure to have contingency plans for delays – unforeseen issues are more likely to arise than not.

5. Test Ximple Cloud-ERP and Fix Issues if Needed

To make sure that everything goes correctly and according to plan, follow the following testing procedure :

First, take a small amount of test data from your current ECLIPSE ERP.

Make sure that it loads correctly to Ximple ERP.

Check how the Ximple ERP is handling the data, take the feedback.

Your key users should then take the Ximple Wholesale Distribution ERP for a test drive. Simulating their daily business processes and running rigorous tests on the system. This is the crucial step in catching problems and tracking them early.

Make Epicor Eclipse ERP/Prophet 21 Migration Success. Upgrade to Ximple Next Generation ERP for Wholesale Distribution with confidence :

Ximple Offers SaaS-based Cloud ERP software to Leading Wholesale Distributors. It severs ERP needs for Electrical Wholesale Distributors, Automotive Distributors, HVAC wholesalers, Plumbing distributors, Fasteners Distributors, Industrial Distributors, Hose and Fittings Distributors, Construction Distributors, Electronics Distributors, Pharmaceuticals Distributors, Chemical Distributors, Cosmetic Chemical Distributors, Power Transmissions & Bearing Distributors, Clothing Distributors & Convenience Store Distributors.

Final Words to Epicor’s Eclipse/Prophet 21 Erp Wholesale Distributors Software Users

“Switching from ECLIPSE ERP & Prophet 21 ERP system is never easy unless you have the right partner with experience in doing similar migration. ECLIPSE ERP data migration is one of the more complicated parts of the process. Planning and defining a strategy for this ERP upgrade process will save you a headache in the future. Moreover, picking the right Cloud-based ERP for wholesale distributors is essential to set you up for success.”

Get in touch with us to see how Ximple ERP consultants can help you upgrade your ECLIPSE ERP to Next Generation ERP to grow your wholesale distribution business. 



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Replace your Array Legacy ERP Software to Ximple ERP for Distributors

Here, we will show you data migration steps for replacing Array ERP Software with Next Generation Cloud-based Ximple ERP Software.

How to upgrade Array Legacy System with Modern Ximple ERP System?

How to upgrade Array ERP system? We have expertise and knowledge of Array ERP. Our experts can help you upgrade to our Next Generation Ximple ERP Software.

Array ERP upgrade to Cloud-based Ximple ERP is a multi-layered, involved endeavor that must be carefully planned and managed. One of the critical layers is migrating your Array ERP data to the Ximple SaaS ERP system.

Many wholesale distributors make the mistake of assigning very little importance to this data migration essential task. As a result, they either end up scrambling at the last minute to resolve data display issues or end up with a frustrating implementation mess altogether.

There are, however, steps you can take that will help you make sure the Array ERP data migration process proceeds without glitches and gets completed in as short a time frame as possible.

Data migration is the process of organizing, restructuring, copying, and migrating data from your Array ERP systems to Ximple ERP Software

1. Analyze Array ERP Data Migration to Ximple ERP Project

Analyzing your Array ERP data way ahead of the actual migration is a crucial step. You know that your business deals with different kinds of data.

Master data – the core data that is essential for the operation of your business processes. It is a consistent set of attributes and identifiers that describes your company’s different entities, e.g., customers, products, suppliers, chart of accounts, etc.

Historical data – collected data that is over many years.

Live/current data – all of your recent transactional data. So before you let our ERP consultant embark on data migration, you first need to make some decisions about these data types.

This can be a tricky and complicated process. If your employees had been inputting data into your Array ERP using standardized processes all along, then that’s excellent news. If, however, they had created their ways of data entry at some point or another, it may open the door to a whole new set of complications.

You have to define things like,

What data has to be migrated first.

When the data should be migrated, either close or after the Go-live date.

Which historical data has to be migrated to the Ximple Wholesale Distribution ERP system.

The levels of access to users of the data.

Hence it is imperative to overlook the planning and strategizing portion of the data migration to avoid unpleasant and frustrating complications.

2. Review your Current Array ERP Data and Processes

You have to assess whether you need all the data in the Ximple Wholesale Distribution ERP or not. Before migrating your data from your Array ERP to the Ximple ERP system. You have to do some spring cleaning.

Review your data and decide on its quality. This is the perfect opportunity to rethink or reassess the ways to record data.

You may also want to consider changing your processes and asking the Ximple ERP implementation partner for recommendations on the stored data structure.

You have to assess whether you need all that data in the Ximple Wholesale Distribution ERP. This is the time to clean up irrelevant information, inaccurate data, and duplication.

In the end, you should have organized, consistent data categories ready to be migrated to the Ximple Wholesale Distribution Cloud ERP.

3. Assign the Right People for Array ERP Replacement Project

Apart from ensuring that the Ximple ERP implementation partner is thoroughly briefed with Array ERP data before they begin the migration process, an essential success factor for this project is assigning an in-house team or employee that will superhead the process.

Ideally, these people should be long-term company employees who are well versed in the company background and its history with legacy systems.

These employees can surf your company to extract and organize that data into structured charts.

You, in turn, will rest assured that you have trusted people that will make sure to keep pushing the data migration forward until everything is successfully entered the Ximple Wholesale Distribution ERP.

4. Remember That Time Is of the Essence for Your Array ERP Replacement and Migration to Ximple Cloud ERP

The way you map out your data migration processes is crucial. It would help if you had a clearly defined timeline that reflects the types of data, the amount of data, the necessary changes to be made, etc.

Do make sure to have contingency plans for delays – unforeseen issues are more likely to arise than not.

5. Test Ximple Cloud-ERP and Fix Issues if Needed

To make sure that everything goes correctly and according to plan, follow the following testing procedure :

First, take a small amount of test data from your current Array ERP.

Make sure that it loads correctly to Ximple ERP.

Check how the Ximple ERP is handling the data, take the feedback.

Your key users should then take the Ximple Wholesale Distribution ERP for a test drive. Simulating their daily business processes and running rigorous tests on the system. This is the crucial step in catching problems and tracking them early.

Final Words to Array Erp Wholesale Distributors Software Users

“Switching from ARRAY ERP system is never easy unless you have the right partner with experience in doing similar migration. Array ERP data migration is one of the more complicated parts of the process. Planning and defining a strategy for this ERP upgrade process will save you a headache in the future. Moreover, picking the right Cloud-based ERP for wholesale distributors is essential to set you up for success.”

Get in touch with us to see how Ximple ERP consultants can help you upgrade your Array ERP to Next Generation ERP to grow your wholesale distribution business. 



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