The Importance of a Distribution Solution

6.06.2023

In today’s fast-paced business landscape, efficient and effective distribution has become paramount for companies striving to stay competitive. In this blog, we delve into the significance of a distribution solution, highlighting why they are crucial for businesses of all sizes. Additionally, we explore the myriad benefits these solutions bring, enabling organisations to optimise operations and achieve sustained success.

What is a distribution solution?

A distribution solution, which can also be known as distribution management software, is a specialised type of software designed to streamline and optimise the operations of distribution companies. It provides comprehensive tools and functionalities to manage inventory, process orders, handle logistics, and track supplier relationships. By automating and improving distribution processes, this software helps businesses efficiently manage the flow of goods from suppliers to customers. It integrates various functions such as stock  tracking, order processing, warehouse management, and reporting into a single platform, providing better visibility and control over distribution operations. Ultimately, distribution solutions enable businesses to enhance efficiency, accuracy, and profitability in their distribution processes.

The Importance of a Distribution Solution

With the growing complexities of supply chain management, a robust distribution solution enables a business to streamline operations, meet customer expectations, and optimise costs. By providing enhanced visibility, improved efficiency, and scalability, these solutions empower businesses to stay ahead, deliver exceptional customer experiences, and achieve sustainable growth in an ever-changing marketplace.

How is this important for my business?

On an everyday level, your business sources items from distributors, stores it until it’s sold, and then moves it to clients when ready. In its essence, however, a distributor is the cash of the executives business. You’re taking money and transforming it into stock.

Distribution solutions have long assisted distributors in making their businesses run smoothly. Here are some reasons which validates why distribution solutions such as business management software is important for your business:

• Improved Inventory Management

A distribution solution such as an ERP system can spare you valuable time and cash by disposing of the overwhelming assignment of manually processed inventory management. Automated stock management capacities can improve your administration forms by permitting end clients to follow and oversee information over numerous distribution centers – giving you constant perceivability to current stock in travel and expenses.

• Run an efficient warehouse

The more warehouse movement, the more profitable your distribution business is. Within your distribution solution (business management system) you have warehouse management modules which accompany numerous advanced ERP suites. These let you streamline your distribution. The distribution solution covers work processes across accepting and stock administration just as the activity of devices like standardised tag scanners and cell phones. 

• Eliminate Data Redundancy and Errors

Data reiteration and errors are a typical sight when you utilise diverse software to manage such data. With distribution solutions such as an ERP incorporated into your business, you can dispose of such wasteful aspects and deal with your business better by having total visibility of every one of your strategies and tasks.

• Reduce Order Times

Automated sales order processing, which is available within your distribution solution, eliminates delays in order fulfillment and shipping. The suite usually also enables you to set up rules to handle credit, returns, drop shipments and so forth across multiple warehouses.

• Streamlining Operations

Distribution solutions play a pivotal role in streamlining and optimising operations and various aspects of the supply chain. By automating processes, eliminating manual errors, and enhancing visibility, these solutions ensure a seamless flow of goods from manufacturers to end customers. This streamlined approach minimises bottlenecks, reduces lead times, and boosts overall operational efficiency.

• Meeting Customer Expectations

In today’s customer-centric era, timely and accurate product delivery is vital. Distribution solutions provide businesses with real-time insights, enabling them to monitor inventory levels, track shipments, and respond swiftly to changing customer demands. By meeting and exceeding customer expectations, companies can enhance customer satisfaction, build brand loyalty, and gain a competitive edge.

• Cost Optimisation

Distribution solutions help optimise operation costs by minimising waste, improving inventory management, and optimising transportation routes. By identifying the most efficient distribution channels and reducing excess inventory, businesses can reduce operational expenses and enhance their bottom line. Furthermore, these solutions facilitate better demand forecasting, ensuring optimal stock levels and reducing the risk of overstocking or stockouts.

The top requirements most companies look for:

• Sales Order Management

Sales order management turns information into orders. Distribution software automates order processing by taking data input from a customer and creating a formal order for products. Herbst systems provide omnichannel order entry tools as well, like Point-of-sale or POS software. POS software facilitates payment processing in brick-and-mortar locations, which helps offset some of the stiff online competition.

You can also choose a distribution solution that provides self-service portals for both vendors and customers to keep all parties in the loop when it comes to orders.

• Point- Of- Sale (POS)
• Automated Order Processing
• Real- time Order Status
• Customer Pricing
• Self- Service Vendor Portal
• Inventory Management
• Shipping Information
• Automated Payment

• Procurement Management

In order to stay competitive, distributors must adopt effective strategies for procuring essential goods for their business operations. Modern sales and distribution software offers a user-friendly interface that focuses on acquisition capabilities, including purchase order and supply management. Procurement involves outsourcing the acquisition of products that the organisation does not handle directly. Procurement software provides users with assistance in managing request demands efficiently. These solutions enable users to integrate purchase orders with accounts payable for streamlined payment processing. 

Additionally, users have the ability to set up alerts for any discrepancies identified during the final tally. Key features of the software include:

• Purchase Order
• Purchase Request
• Vendor Management
• Shipment PO
• Purchase Scheduling

• Warehouse Management

A distribution solution has the tools needed for the heavy lifting of order fulfillment. First, warehouse management software takes care of your inbound and outbound processing. Warehouse management automates the pick, pack and ship process along with putaway. These activities support a streamlined warehouse, enabling your employees to perform their daily tasks in the most efficient way possible. These will have visual interface components to help see where things are happening and how distribution has to occur across the entire chain of business locations.

• Inbound Processing
• Outbound Processing
• Order Picking
• First In First Out
• Shipping
• Location Tracking

• Inventory Management

Within your distribution solution, Inventory management tools allow users to assign serial numbers based on which lot the product came from. From the serial number, you can quickly find out important product data, like geographical origin and time of production. Data points like these are extremely valuable in the case of a product recall. With serial numbers, you’re able to recall only the affected product instead of recalling all products on the shelves.

• Inventory Availability
• Inventory Cost
• Distribution Requirement Planning
• Inventory Requirement

• Financial Management

Distribution software may also help decision makers evaluate cost centers. Costs will be attached to everything that happens in the course of distribution and surrounding business processes. Users can look at costs from a variety of precise vantage points to identify which investments are really bringing value and which may be changed or updated.

• Accounts Payable
• Accounts Receivable
• Analytic Accounting
• Billing and Invoicing
• Payroll
• Debt Management
• Budgeting and Forecasting
• Tax Preparation

• Supply Chain Management

Distribution software streamlines supply chain management by integrating and automating key processes. It enhances visibility and control over inventory, orders, and logistics, optimising overall efficiency. Additionally, it facilitates better collaboration and communication with suppliers, resulting in improved coordination and reduced lead times.

One of the main reasons why supply chain collaboration fails is because of ineffective communication. However, our distribution solutions include web-based portals that both external and internal parties can use to communicate. These portals also allow vendors to onboard themselves into the system, eliminating the constant back and forth typically required to process partners.

• Transportation Management
• Live Transport Information
• Supplier Management

• Web Portal

Web portal solutions allow you to set up the shopping experience that will satisfy your website’s visitors and encourage them to become customers. Use real-time data to give your shoppers accurate prices, order status and product catalogs. Many distribution systems don’t typically include eCommerce tools, but they are easily integrated if not built-in.

Check out Herbst's Kiosk overview for Goods in, production and Dispatch!

Benefits of Distribution Solutions

• Enhanced Visibility

Distribution solutions provide comprehensive visibility across the supply chain, offering real-time insights into inventory levels, order statuses, and shipment tracking. This enhanced visibility allows businesses to make informed decisions, identify potential bottlenecks, optimise operations and proactively address any issues. With greater transparency, companies can improve coordination, mitigate risks, and ensure smooth operations.

• Improved Efficiency

By automating manual tasks, eliminating paperwork, and streamlining processes, distribution solutions significantly improve operational efficiency. These solutions enable seamless order processing, accurate inventory management, and efficient route optimization, resulting in faster order fulfillment and reduced lead times. The increased efficiency not only enhances customer satisfaction but also enables businesses to handle higher volumes without compromising quality.

• Scalability and Flexibility

Distribution solutions offer scalability and flexibility to adapt to changing business needs. As companies expand their operations or enter new markets, these solutions can easily accommodate growth by efficiently managing increased order volumes and complex logistics. With customizable features and integrations, businesses can tailor distribution solutions to suit their specific requirements, ensuring a scalable and future-proof solution.

Why choose Herbst Software?

Herbst Software is known to offer a powerful, fully integrated distribution solution, built to deal with a wide range and high volume of stock operations. This solution gives you the ability to manage your product life cycle and optimise inventory operations across the organisation, then linking this information in real-time directly with your other business processes.

The purpose of this solution is to completely automate your stock control procedures with 100% accuracy.  With the sales and purchases ledgers being fully integrated, stock levels are easily maintained and tracked as this data connects directly with the stock levels. Additionally, this solution gives you real time insight into the current stock levels and allows for actionable information you can use to keep your business running efficiently at all times. Our touch screen kiosk software is also available to use in warehouses to facilitate real-time management of stock.

Other articles you may be interested in:

How to improve your warehouse operations

Benefits of integrated wholesale management software

All you need to know about ERP (business management solution)