ARTICLE | 5 MIN READ
What Is Distribution Management Software?
Learn about distribution management software and its role in your business.
Distributors and manufacturers require unique tools to manage critical aspects of their businesses. Distribution management software comes in all shapes and sizes; still, its primary function is universal—managing and automating the distribution process so that your team spends less time crunching numbers and more time getting products out the door.
What Does Distribution Management Software Do?
Distribution management software handles responsibilities such as inventory tracking, order fulfillment, and customer support. This software is a bit like a specialized enterprise resource planning (ERP) solution due to its focus on day-to-day necessities. At the same time, its distinctive features help distributors drill down into processes and keep things flowing smoothly.
Distribution management software handles essential tasks such as:
- Sales order processing and fulfillment
- Supply chain management
- Inventory and raw materials tracking
- Customer relationship management
- Workflow automation
- Reports and dashboards
These features are universal, but not every distribution management solution boasts all of them. Some require integrations and add-ons to gain full functionality, while others come equipped with all the tools a distributor could want.
What Are the Benefits of Using Distribution Management Software?
Software with distribution-specific features benefits businesses responsible for procurement and shipping. Distribution management systems track items as they flow in and out of your facilities, ensuring fewer errors and more free time for your employees.
The most significant benefit a distribution management solution offers your business is a reduction in stockouts. Supply chains with multiple touchpoints are challenging to manage and even more challenging to forecast. Distribution management software takes guesswork out of the equation at every stage of the process, from procurement through shipment. This provides your business with a 360 view of availability and a means of preventing stockouts.
Other benefits of distribution management software include:
- Timely order fulfillment
- Improved customer satisfaction
- Reduced overhead costs
- More accurate reporting and forecasting
Is Distribution Management Software a Good Fit for My Business?
Distribution companies have unique needs that out-of-the-box ERP and CRM solutions cannot always address. To figure out whether distribution management software would suit your needs, answer the following questions:
- Does my business move goods through a warehouse, packaging center, or distribution facility?
- Does my business struggle to track sales orders with our current software?
- Does my day-to-day work (or the day-to-day work of my colleagues) involve barcode scanning, sales order fulfillment, processing, and stock evaluation?
- Can my business create more efficiencies in how we process and use stock?
- Does my business require fine-tuned forecasting to serve our customers better?
If you answered “yes” to any of these questions, your company would likely benefit from a distribution management solution.
Where Should I Start?
At Cargas, we specialize in helping businesses find the best software to meet their unique requirements. Built on the Microsoft platform, our distribution solution brings together all the tools you need to manage your business.
Dynamics 365 Business Central for Distribution Demo
See the software in action as a Cargas Business Central consultant walks you through sales order entry, line items, part numbers, order confirmation, shipping, invoicing, and post-order statistics.