3 Signs Your Distribution Business Should Upgrade To A Cloud ERP Solution

In today’s fast-paced and complex distribution world, having the right tool for the job is more important than ever.

Many companies don’t realize the ills that plague them can be cured with cloud ERP solutions. This technology enables distributors to conduct sales forecasting based on hard data and supports effective inventory management, according to an article on the NetSuite website. But how do you know if a cloud ERP solution is right for you? Here are three signs it’s time for an ERP upgrade.

1. You need different software for different processes: How do you collect, document and process information? Does the finance department use a program for accounts payable and receivable that’s different from what the sales department uses to input customer information? Does order processing and fulfillment involve time-consuming manual processes?

   “When various front- and back-end systems run separately, it can wreak havoc on the processes that are meant to ensure your company is running smoothly,” the NetSuite article notes. “Without accurate data from sales, inventory management may suffer, while not having the latest information from accounting can trigger a ripple effect on everything from marketing budgets to payroll.”

   Cloud-based ERP solutions can integrate your systems so all the functions are working off the same database. Access to accurate, real-time information streamlines processes, allows for better decision-making and frees up staff to work on other projects.

2. Information about the business is difficult to access: Businesses should be able to quickly and easily pull such information as average sales margin and other key performance indicators. Information should not be trapped in silos and locked into spreadsheets. You should be able to get it — and get it fast — in order to truly understand your operations and make informed decisions.

   “The pace of business is faster than ever before, which means employees across your company need immediate access to key data,” the article explains. “With an ERP solution, executives can get a holistic view of business operations at any time, while other staff can get the information they need to do their jobs more effectively.”

3. Accounting is a long and difficult process: The financial department will often supply the first noticeable evidence that a business lacks ERP software. Employees should not be trying to consolidate or reconcile financial information on disparate systems using various spreadsheets. ERP can bring all of this information together, eliminating manual processes and increasing efficiency.

   “With all financials in a single database, accounting staff won’t have to spend hours cross-posting information, rekeying numbers, or reconciling data manually,” the article says. “Your accounting staff will be more productive, freeing them to deliver critical reports without delays and frustration.”

Moving forward, distributors who’ve decided to take the plunge and revamp their ERP will want to make sure they get the right system for their needs. They should evaluate the functionalities of inventory and route management, order processing and procurement that are available through cloud ERP solutions. Look at your processes and evaluate the functions that support those processes.

When you begin to implement an upgrade, treat it like a project. Put a project team on it, set goals and milestones, and get management buy-in. Make sure the project goals support your business strategies. Set a realistic project scope and stick with it, and test to see that you’re getting what you seek from a cloud ERP solution.