This overview of SAP ERP for wholesalers will cover the business pressures facing wholesale distributors, explain how ERP helps wholesalers, look at what is used to compare SAP ERP solutions, and Seidor's commitment through an ERP journey.
Business Pressures for Wholesale Firms
Wholesale distributors are facing many pressures - such as consolidation, shrinking margins, and competition from third-party logistics providers. They are searching for ways to deliver profitable growth as they buy and sell product more efficiently.
SAP’s solutions are uniquely positioned to meet the requirements in the wholesale distribution space. Most distributors today are running disparate systems that must be interfaced. As such, the cost of integrating new acquisitions, launching new product portfolios, increasing the number of value-added services, and performing such simple yet crucial tasks as closing the books are time-consuming, labor-intensive activities.
A few of the market trends for wholesale distributors include:
Revenue growth – Wholesale distributors need to increase revenues by improving their pricing and by reducing the days sales outstanding. They need to work closer with vendors and partners to accelerate inventory turns and improve goods availability.
Cost of goods reduction – Wholesale distributors need to take advantage of order optimization opportunities to improve profitability and visibility. In addition, efficiently managing chargeback and rebates-outstanding processes will have a positive impact on the overall profitability.
Operating expenses reduction – Wholesale distributors need to improve accounting and purchasing process efficiencies, as well as increase their business intelligence and transparency. They must improve their materials management to reduce inventory.
We talk a lot about differentiation and disruption in wholesale distribution. Differentiation from competition – Wholesale distributors need to evolve, enter new markets and introduce new business models in today’s disruptive business environment to support the long term survival of the organization.
More than ever, wholesalers are becoming aware of technology and adapting a culture of change to move towards digital transformation.
How Does ERP Help in Distribution?
ERP helps in distribution to automate processes to squeeze out costs in your wholesale business. SAP ERP for wholesale distribution solutions can give you greater efficiencies everywhere throughout your order-to-cash process. SAP integrates customer management, sales order, and billing processes so you can better understand the profit percentage for each customer, order, and SKU. This knowledge can help you make better business decisions to increase your razor-thin margins by decreasing costs.
At Seidor, we have over 7000 customers running SAP solutions worldwide. When talking with executive managers from distribution companies, we consistently hear the same business needs they expect from wholesale ERP software:
- Better forecasting accuracy and reduction of out-of-stocks
- Better discounts with improved “deal buy” processes
- More effective product introduction processes
- Better management of aged inventory, or that which is nearing obsolescence
- Improve sales order management capabilities
- Improve pricing effectiveness
- Improve time to turn around chargeback receivables
- Improve customer issue tracking and resolution processes
As a distributor grows, the business expands and drives additional needs or requirements. To speed warehouse operations they look for wireless, handheld devices that are integrated to inventory systems for use in the warehouse. To process online orders faster, they look for integration to websites and ecommerce. To expedite outbound shipping they look for integration with major shipping service providers like UPS, FedEx and USPS. We have also seen requirements for credit card processing, integration with EDI tools and more.
Why Seidor and SAP Solutions for Wholesale Distributors
SAP’s distribution ERP solutions contain integrated functionality for financials, sales orders, purchasing, and MRP. There are also best-in-class operational add-on products that expand the breadth and depth of the solution for further capabilities.
Seidor puts your business first. With solutions for the small, midsize and large distributor we realize that one size does not fit all. We take the time to understand your requirements and processes before deciding the best fit SAP ERP solution.
Seidor USA operates from five offices and supports local as well as global SAP ERP solution initiatives. Talk to us to discover how SAP ERP solutions will enable your business to optimize and streamline your entire process.
Compare SAP ERP Wholesale Solutions
The process to help you compare SAP ERP wholesale solutions starts with understanding your place in the market now, and your vision for the future. We ask questions to understand your business size, your process, your place within your industry, and where you want your business to be. Then we match your requirements, functions, users and investment goals to the SAP solution set to select an appropriate platform.
We apply your business principles with those we have encountered across our customer base. Seidor has experience with providing ERP solutions within a number of wholesale distribution verticals.
Over 75% of the world’s transactions run on SAP systems. We can fit an SAP ERP solution for you.