19 Apr Six Must-Haves in a Distribution Management System
Not all distribution management systems are made equal. At face value, it may seem like most distribution management systems are the same. However, it’s not about what the system can do, but rather about what it can do for you! Every business has its unique requirements. In this guide, we discuss six must-haves in a distribution management system.
There are several questions to ask yourself when deciding on a new distribution management system. Firstly, what can the product do to make you and your staff more productive? Secondly, what features and functions do the products have that perform the daily accounting and business management functions? Third, does the product leverage technology for usability, customizability, and maintainability? Finally, how does the product maximize features and functions vs. cost for the usable lifetime of the product?
Here are the six must-haves in a distribution management system.
Table Of Contents
Distribution Management System Must-have 1: Multi-entity
Great distribution management systems support multi-company, multi-warehouse, and international companies. Which includes financial consolidations, intercompany eliminations, and reconciliations.
Distribution Management System Must-have 2: Financial Management
Choose a distribution management system that supports standard accounting functions such as the general ledger, accounts payable, accounts receivable, cash management, tax management, and more.
Distribution Management System Must-have 3: Quote-to-Cash
A system that enables you to get paid faster is crucial. Invest in a system that streamlines creating quotes, converting them to sales orders, quickly check inventory availability, and perform credit checks. Simply pick, ship, invoice, and collect payments.
Distribution Management System Must-have 4: Sales Order Management
You know a system is great if you can create and manage sales orders across multiple warehouses. With a few clicks, you can allocate inventory, verify credit limits, and issue replenishment orders. Accept returns and manage complex pricing/discount policies with ease.
Distribution Management System Must-have 5: Purchase Order Management
With a powerful distribution management system, such as Acumatica, you can automate complex procure-to-pay processes that involve multiple products and suppliers. Always choose systems that simplify requisition management. From obtaining bids, converting them to purchase orders, receiving the inventory, input invoices, match, and pay.
Distribution Management System Must-have 6: Inventory Management
It’s always great to start by understanding the difference between inventory management and inventory control. Integrated inventory management software allows you to manage your inventory, plan and manage goods through your distribution network, and control customer & transfer orders.
Those were the six must-haves in a distribution management system. Choosing an ERP distribution management and accounting system is a decision you have to live with for years. It is why you need to ensure that you invest in a solution that caters to your unique industry-specific requirements and workflows.
Need guidance in choosing an ideal distribution management system for your business? Drop us a line on 011 792 9521, and we’d be glad to assist.