The wholesale industry is known as a field that involves so many processes, from acquiring goods from suppliers to distributing them to retailers or to end consumers. If these processes are carried out manually or with separate systems, it will be difficult for wholesalers to monitor and analyze the performance of each process.
With an ERP system, time-consuming wholesale processes that are prone to errors can be automated and integrated. All processes can be monitored and managed from just one platform. Here are seven main benefits of ERP software in the wholesale industry.
7 Main Benefits of ERP Software in the Wholesale Industry
1. Reduced Operating Costs
ERP software enables wholesalers to save on operating costs since repetitive and time-consuming processes are automated. For further cost savings, ERP software also allows wholesalers to forecast their income and expenses more accurately. This way, budgeting can be done better.
2. Streamlined Supply Chain Processes
With ERP software, supply chain processes from purchasing goods from suppliers to shipping them to customers become simpler. You can place orders automatically with your favorite suppliers, track items coming in, determine locations of these items, manage them in your inventory, and finally ship them to your customers. Everything can be recorded in an organized manner with your ERP system.
3. Optimized Inventory Management
One of the most important benefits of ERP software in the wholesale industry is optimized inventory management. The automated system allows you to track stock levels in real time, making it easier for you to keep steady inventory. You can forecast the amount of items that need to be provided in the next period, thus preventing both product shortages and overstocking. In essence, your whole inventory will be controllable.
4. Simplified Sales Processes
ERP software makes it easier for your sales team to focus on qualified leads. All leads can be managed and sales status can be monitored easily through a sales pipeline. Managers can see which salespersons have converted leads and which have not, how many meetings have been completed, how many opportunities won by them, and many more.
5. Increased Visibility
Imagine monitoring the entire process in your wholesale business through one application? This can be realized if you use an ERP system. With a web-based ERP system, finances, procurement, inventory, sales, employees and etc. can be managed right from your smartphone. Comprehensive visibility can ultimately help you make better business decisions.
6. Provides Real-Time Information
In addition to getting complete visibility, you can also get real-time insights from an ERP system. That means, you can take immediate actions in reaction to any information you get. For example, today’s sales suddenly dropped, but with an ERP system you’d be able to figure out the cause and do something immediately to increase them again.
7. Improved Customer Satisfaction
Eventually, an ERP system helps you improve satisfaction of your customers, because orders can be fulfilled in a timely manner; no more delays due to untracked orders or product shortages. With ERP software, shipments can be easily tracked until they arrive at customers’ doors and the return process can also be made simpler.