ERP software can be a pain to make sense of, especially when searching for a platform with specific modules to fit your business’s needs. If you’re new to the software market, the products and features can be overwhelming as well. But we’re here to help — this article lists some of the top distribution modules in ERP software, as well as software requirements that your business should prioritize when searching for a new solution.

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Distribution features are crucial to any business that sells products — they ensure you can get those products out to storefronts and buyers when expected. However, there are several systems and features that you’ll need to consider when making a decision about which platform to commit to. Here, we’ll go over what some of those features and requirements are, and how they can benefit your business.

Table of Contents

• Overview
• Top Features and Requirements
  • Accounting and Financial Management
  • Customer Relationship Management
  • Ecommerce Capabilities
  • Integrations and Extensibility
  • Inventory Management
  • Mobile Capabilities
  • Purchase Order Management and Procurement
  • Reports, Dashboards and Business Intelligence
  • Sales Order Management
  • Warehouse and Transportation Management
• Pricing Considerations
• Next Steps

Overview

Distribution software can be either a standalone platform or a piece of a full ERP software system, but its purpose is the same either way: managing your business’s supply chain from beginning to end. It helps automate approvals and transitions from step to step, improving manufacturing and delivery efficiency overall.

Key Features and Requirements

1. Accounting and Financial Management

Accounting is essential to making sure your business’s finances are in order, and incorporating financial management capabilities into your distribution workflow means improving efficiency and transparency throughout. These functions support tracking multiple business accounts, automatically updating financial databases and even directly processing payments in tandem with order management.

An example of an account ERP’s capabilities.

Using financial management features can also help you track where your business is spending the most, and assist in evaluating returns on investment to see where that spending can be safely cut.

2. Customer Relationship Management (CRM)

CRM software gives your company tools to better connect with their customers and improve conversion and retention. These tools range from marketing functions, such as demographics and purchase trends, to methods of direct contact that help customers address concerns and support needs.

An example of a CRM module displaying information.

CRM tools can be part of a larger suite of distribution and ERP software, or can come standalone as a module that you can integrate with existing software. Be sure to ask vendors what options they have.

• Automated Emailing
• Communication Logs
• Create and Track Marketing Campaigns
• Individual and Group Calendars
• Lead and Opportunity Management
• Loyalty Program Management
• Sales Commission Management
• Service Management
• Telemarketing Management
• Territory Management

3. Ecommerce Capabilities

If eCommerce is among the distribution strategies you’re using, eCommerce software can help you set up and manage your online presence. This software tracks user activity on your site and links purchase orders and conversions with the rest of your distribution software for maximum integration and efficiency.

A preview of an eCommerce software’s interface.

Ecommerce modules allow you to set up robust storefronts on platforms such as eBay, Amazon, Magento and Shopify, and give customers access to detailed product catalogs that they can sort by whatever product specifications they need. Many distribution and ERP software platforms don’t come with eCommerce as standard, so be sure to look into standalone modules to see what can integrate with your current system.

• B2B Self-Service Portal
• Online Storefronts
• Personalized and Customized eCommerce Website
• Product Catalog Management
• Real-Time Stock Levels
• View In-Process Order Status

Get our Distribution ERP Software Requirements Template

4. Integrations and Extensibility

With so many different modules and software pieces available, it may be best to look at integration platforms for distribution software. These enable you to make modules work together with other modules — such as electronic data interchange (EDI) — to streamline and centralize tasks in one place. Some platforms offer integration platforms as a service (iPaaS) to simplify the process.

An example of an EDI dashboard.

• Accounting Software Integration
• Barcode Scanning Devices Integration
• CRM Software Integration
• EDI Software Integration
• ERP Software Integration
• Human Resources and Payroll Software Integration
• iPaaS and Middleware Software Integration
• POS Software Integration

5. Inventory Management

Inventory management tools give warehouse managers in-depth pipeline, demand and manufacturing analyses. These predictive features can help a company know when to order items through a supply chain and how fast those stores will deplete. Typically, these tools appear under a distribution requirements planning (DRP) module.

A preview of an inventory solution’s client module.

These tools also enable intelligent inventory tagging using RFID tags or barcodes, allowing you to track inventory throughout your warehouse. You can quickly find essential product data, like geographical origin and production time, from the serial number or tag.

6. Mobile Capabilities

Several distribution and ERP options offer mobile capabilities for your business, enabling users to carry out operations even when not at the office. Using these capabilities enables you to literally hold your business in the palm of your hand.

A preview of Zoho books’ mobile capabilities.

This option traditionally comes with cloud-based software deployments, and it’s becoming more widespread — Verified Market Research expects the global mobile enterprise application market to hit $268.14 billion in 2030.

• Capture Customer Orders in Mobile
• Check Order Status in Mobile
• Mobile Optimized or Responsive Web Design
• Mobile PO Receiving
• Native Mobile Application
• Replenish Inventory in Mobile
• Sales History in Mobile
• Tracking Inventory in Mobile
• View Customer Accounts and Invoices in Mobile

7. Purchase Order Management and Procurement

Distribution software typically also contains procurement management functions, such as purchase order and bid management, to help you get ahold of products and raw materials to create your own products. Procurement management handles drop shipping for products your company doesn’t directly address.

A preview of a procurement management solution utilizing invoicing tools.

Procurement software also assists users in issuing requisition requests so they can match it with accounts payable to make payment processing easier.

• Blanket Orders
• Drop Shipments
• Landed Cost Tracking
• Purchase Audit Trail
• Purchase Order Approval Workflows
• Purchase Order Tracking
• Supplier Portal
• Vendor Master Data Management
• Vendor Selection and Performance Analysis

Get our Distribution ERP Software Requirements Template

8. Reports, Dashboards and Business Intelligence (BI)

Reporting and visualization functions are crucial to making sure everyone in your organization understands how your business is performing and how it can be improved. Some distribution solutions offer machine learning capabilities to help suggest those improvements based on past performance.

An example of a BI interface capturing and showcasing data.

Dashboard functionality enables you to centralize all the most important data from those reports and visuals into a single location, giving you a comprehensive view of your business at a single glance. For further improvement, you can implement BI software to engage in even more advanced analytics and machine learning.

• Built-In Dashboards
• Custom Dashboards
• Customer Buying Trend Analytics
• Custom Reports
• Financial Reports
• KPI Scorecards
• Pre-Built Reports
• Requisition Reports
• Role-Based Dashboards
• Sales Representative Performance Metrics

9. Sales Order Management

Sales order management features take the information that customers enter while purchasing from you and turn it into an order that can be tracked, updated and fulfilled. These are the backbone of any distribution system, allowing for full transparency as the order is packaged and shipped.

Using these features enables you to give customers regular updates on the status of their order, even giving them access to watch it move through the process in real time. Some solutions even enable a self-service portal for vendors and customers to facilitate communication and help questions get answered in a timely fashion.

Larger businesses that sell through multiple channels may want to look into POS (point-of-sale) software to help them manage orders from every source. A POS system helps collect payments from every channel a business sells through and ensures they all go to the right place.

A preview of a distribution’s main menu.

10. Warehouse and Transportation Management

Any business shipping goods will need to properly manage their warehousing processes, and distribution ERP software contains several tools to help. First, warehouse management system (WMS) software tackles inbound and outbound processing and ensures accurate inventory data and smooth warehousing processes.

An example of a WMS solution’s maintenance request management interface.

Once you have your processing in order, you can make use of other tools like slotting optimization, pick-to-light and kitting capabilities, which help optimize the placement of goods in your warehouse, use light signals to speed up the picking process and coordinate multiple warehouses to bundle goods together, respectively.

After you’ve optimized your warehouse process, transportation management systems (TMSes) can help you pick the right delivery services for your products and automate your shipping procedure.