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Abas Business Software is an ERP solution that serves the manufacturing and distribution markets. Abas Distribution suits distributors of HVAC and mechanical, electrical, chemical supplies and more....Read more
VAI’s is an independent software developer and the author of S2K Enterprise, an award winning cloud-based ERP solution utilized by customers operating across the distribution, manufacturing, specialty retail, and service sectors, ...Read more
Inform Distribution Management Software by DDI System is the choice of thousands of distributors. The software is fully integrated allowing distributors to manage everything from inventory and purchasing to sales performance. ...Read more
Körber's K.Motion Warehouse Management System is an adaptable, process based WMS designed to be tailored to companies' unique business practices. Due to its modular design, users can pick and choose from a suite of applications to...Read more
Supporting specialized functionality for distribution, manufacturing, government, and other industries, Microsoft Dynamics NAV is a highly customizable system that benefits from numerous partner-developed vertical extensions....Read more
Established in 1992, Blue Link offers a robust Wholesale/Distribution ERP system with powerful inventory management and accounting features including landed cost tracking, lot tracking and barcode scanning. ...Read more
Microsoft Dynamics 365 provides integrated solutions that allow businesses to track leads, automate field service, drive sales and improve operations using mobile, enterprise-ready business apps from the cloud. What is Mi...Read more
Oracle JD Edwards EnterpriseOne is an enterprise resource planning software with primary features such as real estate management, human capital management, environmental health and safety and commodity trading. What is JD...Read more
With a continually shifting business landscape and growing competition, wholesale distributors are pressured to exceed customer expectations. You need an easy-to-use, modern ERP solution that addresses the highly specialized, core...Read more
BizAutomation is an ERP solution suitable for any industry. At the core of the system is intuitive and integrated functionality for Customer Relationship Management, and Financial Accounting. The system is delivered as a SaaS....Read more
Interprise Suite is a highly customizable solution for small and medium-sized distributors. This ERP suite offers e-commerce, crm, inventory, accounting, suppliers, customers, shipping, credit card processing, and banking manageme...Read more
Royal 4 Enterprise is an integrated enterprise resource planning (ERP) solution with built-in modules for distribution, manufacturing, planning, inventory management, reporting and company financials. It serves midsize to large en...Read more
Built for growing product-selling businesses using QuickBooks, Acctivate is a premium inventory management & multi-channel order fulfillment add-on that helps you focus on growth without operational limitations. Solve for QuickB...Read more
ProActive Inventory Manager is ideal for organizations looking to better manage their inventory but needing a solution that will conform to the company's specific work flows. It's browser-based but can be hosted on or off-site....Read more
Industrial distributors deal with a diverse set of industrial products, ranging from valve fittings and piping to pumps and motors. This diversity creates order management, inventory tracking and transportation management challenges that must be tightly controlled to remain competitive. The right industrial distribution system will include strong inventory management and warehouse management capabilities to keep a distributor up to date on how much of each product is in stock and where the item is located in the warehouse. The system will also include e-commerce, order management and invoicing features that allow distributors to handle sales orders, and procurement/vendor management features for purchase orders.
Here's what we'll cover:
What Is Industrial Distribution Software?
Common Features of Industrial Distribution Software
Evaluating Industrial Distribution Software
Perhaps the most important thing to note about industrial distribution software is that this is not the name of a single software category, but rather a diverse group of software types used in different operational contexts by industrial distributors. These software types fall into the broad territory of supply chain management/ERP, including:
(Click on links for overviews and example products)
Accounting/financial management
Customer relationship management
Together, these applications can handle nearly all of the back-office needs of an industrial distributor. That said, not all distributors will need every one of these applications. Those that do have two options:
Distributors have specialized needs, and occasionally even a distribution ERP won’t offer all the features you need. If this is the case, consider investing in an ERP system along with one or two standalone systems (say, for warehouse management) and then integrating your standalone solutions with your ERP.
The following vendors offer distribution ERP systems:
Not all ERP systems are right for distributors. Many are intended for manufacturers and/or retailers, and these systems will be overkill (not to mention too expensive) for many distribution contexts. Distribution ERPs are more lightweight and offer flexible capabilities in the areas distributors need, which we’ll look at now.
We’ve seen that industrial distribution software is a rather loosely defined category, including most of the applications generally grouped under the heading of supply chain management software.
With that being said, there are three areas of supply chain management where “one-size-fits-all” solutions tend to fall short for distributors:
Distributors need to place purchase orders and receive sales orders, so the solution needs strong order management functionality.
Additionally, the order management system should integrate with the warehouse management system in order to bill for value-added services performed in the warehouse/distribution center, such as kitting, repackaging and light assembly. The warehouse management system itself also needs to be able to track these activities.
Indeed, distributors and logistics companies tend to describe the WMS module as the “weak link” in their ERP solutions. Finding a standalone WMS that fits with your portfolio of services as well as your inventory tracking requirements is the best workaround for this problem, as standalone WMS systems still outstrip modules in ERP systems in the range of functionality they offer.
Moreover, the top industrial distribution systems include the following industry-specific capabilities:
Nested lot codes/serial numbers | Since many industrial distributors get involved in value-added services, such as light manufacturing, assembly, rentals and kitting, industrial distribution software allows for the tracking of nested lot numbers and serial numbers when component parts are combined in a kit or package. |
Industrial product item codes | Since industrial products can vary tremendously, the software supports pricing and tracking of a broad range of products. Examples include building materials, adhesives, heavy equipment, electrical supplies, plumbing/HVAC, janitorial/sanitation and medical. Generally, multiple product codes can be associated with a single product. |
Bill of materials | A bill of materials (BOM) is a list of the materials used in a product, including parts used in its sub-assemblies, sub-components etc. BOMs can have multiple levels, so they present specific costing and inventory tracking challenges for distributors. |
Point-of-sale system | Many industrial wholesalers take walk-up orders from contractors filling an order on their way to a job site. In this instance, your industrial distribution solution will need retail capabilities such as an integrated point of sale system as well as wholesale capabilities. |
Vendor managed inventory/consignment inventory | If you’re monitoring your customers’ inventory levels as a service, or if you’re selling stock on consignment, you’ll need special inventory tracking and order management features. |
Additionally, as part of a complete enterprise resource planning (ERP) system most programs will include accounting and business intelligence tools. Some also include customer relationship management features and HR functionality such as payroll.
The specific type of industrial products sold, sources of revenue and additional services will all play a major part in the evaluation of an industrial distribution software product. A company specializing in medical devices will want a system that supports that industry, while a company that serves multiple industries with service offerings and walk-in orders will need something much more all-encompassing and robust.
When selecting industrial distribution software, buyers should consider the following: