How does SAP Business One enable end-to-end execution of processes for wholesale distribution companies?

When it comes to the wholesale distribution industry, constant changes in customer needs and demands make the work challenging for any distribution company. Apart from demanding customers, this industry is also faced with challenges such as shrinking profits and rising costs.
To be competitive in a changing economy, wholesale distribution companies are looking at newer business models and services that can be driven by technology. The adoption of SAP for wholesale industry is enabling intelligent enterprises to drive new revenue streams and reduce business costs.
What are the benefits of SAP for the wholesale industry? How can this growing industry leverage the features of the SAP Business One solution? Let us answer these questions in the following sections.

Benefits of SAP for the Wholesale Industry

Overall, SAP distribution software solutions can help in multiple ways including:

• Improving your inventory controls and accuracy, along with providing a historical view of inventory-related transactions.
• Managing the overall distribution to delivery process within the same solution.
• Managing different price lists for each customer or group.
• Integrating all warehouse operations and accounting for maximum efficiency.
• Automating the supply and distribution chain.

So, what are the main business benefits of the SAP software for wholesale distributors? Here are some of the main benefits:

• Optimizing your inventory management.
• Streamlining all complex operations.
• Adding cost efficiency to all services.
• Providing self-servicing capabilities to customers.
• Automating operations for an efficient order-to-cash process.

Among the best SAP distribution software tools in ERP, SAP Business One for Wholesale distribution is a comprehensive tool that can easily fit into wholesaler and distributor companies of all sizes. Let us see how.

SAP Business One for Wholesale Distribution

For the wholesale and distributor industry, SAP Business One offers a comprehensive ERP-based solution that caters to each of your business functions including purchases, warehousing and accounting, inventory, and vendor management.
Listed below are some of the main functionalities of the SAP Wholesale distribution software tool:

• Purchase management
  As the core functionality of SAP Business One, purchase management uses integration to manage the entire procurement process right from creating purchase orders to clearing vendor invoices. Within its purchase functionality, SAP B1 offers capabilities such as:
  • Handling of returned goods
  • Issuing credit memos to vendors
  • Managing or allocating deliveries to warehouses
  • Enabling journal entries for repeated vendor invoices
• Order-to-delivery management
  With its built-in order-to-delivery functionality, SAP Business One streamlines your entire distribution process, which is critical for customer satisfaction and controlling inventory costs. Additionally, this functionality is integrated with inventory, material requirements, and finance functionalities.
• Warehouse management
  Through its seamless integration, SAP Business One connects your purchase function to both warehouse and accounting systems. Now, you can easily manage single (or multiple) warehouses from a centralized location. Additionally, you can perform instant checks on item availability, track stock levels, and facilitate item transfers between warehouses.
  Also Read: SAP Business One Enables End-to-End Tracking of Manufacturing Batches

  Additional warehouse management features include:

  • “Bin Locations” feature to configure a bin structure and properties.
  • “Pick & Pack Manager” feature to create pick lists and instantly add inventory items.
• Materials requirement planning or MRP
  As an in-built module of SAP Business One, the MRP functionality is the key to understanding how your inventory levels and demands are being modelled. For instance, the current customer demand can be determined through open sales orders, quotations, inventory transfers, and recurring orders.
  Overall, the MRP feature is effective at replacing an informal or error-prone production schedule with a more accurate and structured approach.

Driven by these functionalities, here are some advantages of SAP to benefit wholesale distributors:

• Enhances productivity at reduced costs
• Enables a better decision-making process using real-time information
• Eliminates organizational silos to drive better business outcomes
• Ensures higher growth and profits

Conclusion

As a wholesale distribution software, SAP Business One goes beyond any regular ERP solution and touches all processes that are run in any wholesale business. Designed for small businesses to large distribution networks, SAP Business One is easy to install and implement within a few weeks.

Also Read: 10 Questions Need to Ask before Finalizing their ERP Application

Among the best providers of SAP wholesale distribution solutions,Praxis Info Solutions specializes in offering complete end-to-end technology services for your business needs. Want to know how? Get in touch with us today.