ARTICLE | 5 MIN READ
4 Reasons Distribution Companies Choose Microsoft ERP
Why is Microsoft’s ERP software so popular among distribution companies?
A successful distribution company must run like a well-oiled machine. But with supply and demand in constant flux, how can distributors reduce waste while satisfying customer needs?
Enterprise Resource Planning (ERP) software helps distribution companies find success. With features that automate procurement, compliance, transportation, and more, ERP solutions make it easy to improve operational efficiency without sacrificing quality or customer care.
Microsoft Dynamics 365 Business Central is one of the top-growing ERP solutions for distributors. It has all the bells and whistles that make ERPs great, like workflow automation and interactive dashboards and reports, but Business Central offers a few unique features that not every ERP can boast.
- Deep integration with the Microsoft platform
- A comfortable price point for mid-market and enterprise companies
- Distribution features available out of the box
- Unhindered accessibility with the cloud platform
The Microsoft Platform
Microsoft is a powerhouse when it comes to software offerings. Statista reports that Microsoft was the world’s third-most valuable tech brand in the world in 2021, while more than one million businesses around the globe use the Microsoft 365 productivity suite. Business Central connects to Microsoft’s various applications for other business areas, including Dynamics 365 CRM for customer-oriented tasks.
These integrations are deeper than what you’d get with third-party integrations. For instance, Business Central can embed itself in Outlook, allowing you to work without leaving your inbox. In addition, you can embed Power BI reports and dashboards in Business Central to get an interactive pulse check of your operations.
By connecting Business Central with other Microsoft solutions, distribution companies can build a robust software environment with up-to-the-minute data across all systems. That means you don’t have to juggle several solutions from disparate software providers.
That’s not to say third-party integrations should be ignored. Partnerships between software providers have allowed Microsoft to expand the quality of its integrative capabilities. For instance, Business Central and Shopify boast a two-way integration to expedite the sales process and keep customers satisfied.
Affordability
Specialized solutions can sometimes come at a steep cost, but Business Central is reasonably priced for mid-market and enterprise distributors. It follows a software-as-a-service (SaaS) payment model, with a monthly fee determined by the number of user licenses your team needs and the level of functionality you require.
The savings available with Business Central are two-fold; companies save money by investing in an affordable solution, and Business Central’s features reduce stockouts and increase efficiency to cut down on wasted materials and repetitive labor. With workflow automation and predictive analytics, Business Central makes it easy to scale your distribution company.
Out-of-the-Box Distribution Features
Business Central is designed with distribution in mind, helping companies adapt to customers’ changing needs. Certain features that might be costly add-ons in other ERPs are readily available in Business Central:
- Predictive analytics for inventory management
- Automation for stock levels, lead times, and reorder points
- Purchase approvals
- Sales and purchase order management
- Item transfers and inventory tracking
- Multi-location capabilities
Access to distribution features out of the box helps companies hit the ground running with their Business Central software. If there are ever tools your team needs that aren’t available in Business Central, you can expand your capabilities using Microsoft’s AppExchange resource. With AppExchange, you can download or purchase add-ons and plug-ins to adapt Business Central to your unique needs.
The Cloud Platform
In a 2022 survey by IT optimization company Flexera, every respondent reported using at least one cloud solution—that’s more than 700 companies across more than 21 countries and 12 industries. While the degree of utilization varies, the reality is that cloud adoption is the norm for businesses of all shapes and sizes.
Business Central is a cloud solution, but if its features sound familiar, that’s because Business Central was built on the code base of Dynamics NAV. Business Central takes the features beloved by more than two million NAV users and puts them in the cloud, modernizing a renowned solution without changing the functionality at its heart. While NAV solutions can be deployed in the cloud, they perform best as on-premise software. Business Central was specifically built for cloud functionality, which makes its online features smoother and more reliable.
With these capabilities in the cloud, team members now have 24/7 access to real-time data whenever and wherever it’s needed. No matter how many team members use Business Central, everyone can access the same information on the same system, unifying disparate departments.
Your Next Steps
Microsoft’s Business Central is a smart choice if you’re considering a new ERP for your distribution company. Its multi-location reporting, real-time dashboards, and workflow automation capabilities keep distribution teams connected, speed up time to cash, and keep your customers happy. If you want to learn more, check out our Business Central distribution demo.
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