You’d be forgiven for thinking the business world has gone a bit crazy in 2022. We’ve got labor shortages, inflation, supply chain disruptions and more. We can hope that things will settle down, but they may not, at least for a while. For distribution businesses, who are often caught in the middle of these problematic situations, it’s more important than ever to use technology to make operations more efficient and profitable. To that end, this article is meant to keep you up to date on trends affecting distribution ERP systems.
ERP Trend #1: Synchronizing Your Supply Chain with RFID and IoT
The COVID-19 pandemic and its aftermath have resulted in supply chain interruptions, including long delays, higher costs, and frustrating shortages. This situation has caused significant problems for distributors, manufacturers, and consumers.
Fortunately, distributed ERP systems can link together various technologies—such as Radio Frequency Identification (RFID) tags and the Internet of Things (IoT)—to help independent companies track their supply chains.
In the past, companies relied on manual processes and paperwork to track their inventories. This process was not only time-consuming but also led to errors. With RFID tags and IoT sensors, businesses can now automatically track their inventory in real-time.
ERP Trend #2: Increased Distribution Automation
As the world becomes more digitized, businesses are looking for ways to automate their processes. This includes tasks such as order fulfilment, warehouse management, and transportation. Automation is also a key component in lowering labor expenses, increasing operational speed, reducing human error, and improving accuracy.
By automating tasks, businesses can increase overall efficiency and accuracy while reducing costs. Managers can research potential bottlenecks and pain spots and develop solutions to overcome them. Modern cloud ERP solutions support sophisticated automation for workflows that align across multiple departments, e.g., sales order management, warehouse management, shipping, accounting, and so forth.
ERP Trend #3: Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are two of the most talked-about technologies in the business world, and for a good reason. These technologies have the potential to transform distribution businesses.
For example, AI and ML can analyse distribution data and help distributors:
- Predict demand and influence decision-making
- Fill orders more efficiently and quickly
- Optimize routing to speed up deliveries
- Detect potential inventory and supply chain issues
- Create more satisfied customers and employees
The Bottom Line
The world is constantly changing, and businesses need to change with it. By keeping up with the latest ERP trends, you can ensure that your business remains competitive in a crazy world. What’s more, by researching and investing in a distribution ERP system, you can automate tasks, improve efficiency, and make better decisions, which will help your business thrive.
We can help. Contact us today to learn more about how Acumatica can help your business stay competitive, no matter how disruptive the world may become. We would be happy to answer any questions you have and provide you with a demo of Acumatica cloud ERP software for distribution businesses.
Additional Distribution ERP Systems Resources
7 Ways Distributors Can Grow With Modern Cloud ERP Software (Part 1 of 2)