Not all cloud ERP systems are created equal. As more distribution companies migrate from on-premises software to cloud solutions, a troubling trend has emerged. Many vendors market their products as “cloud ERP” when they’re actually just hosting traditional software on remote servers. The difference between real cloud ERP and this “fake cloud” approach isn’t merely […]
Every distribution business reaches a point where pricing becomes complicated. What started as a simple markup over cost evolves into a tangled web of customer-specific pricing agreements, volume discounts, promotional rates, contract pricing with expiration dates, category-specific markups, and special one-time pricing commitments made by salespeople in the field. Before long, you’re managing hundreds or […]
Distribution businesses sit at the critical intersection of manufacturers and end customers, orchestrating a complex dance of inventory, logistics, and relationships. From the outside, it might seem straightforward: buy products, store them, and sell them to customers. But anyone who’s worked in distribution knows the reality is far more intricate. The hidden complexity of distribution […]
Every ERP vendor promises impressive returns on investment. Faster order processing, reduced inventory carrying costs, improved customer satisfaction, streamlined operations—the benefits sound compelling. And they’re real. Properly implemented distribution ERP delivers measurable ROI that justifies the investment many times over. But here’s what vendors don’t emphasize: ROI doesn’t come from the software itself. It comes […]
Distribution companies operate in a uniquely challenging space. You don’t manufacture products—you move them efficiently from suppliers to customers. Your value comes from having the right products available when customers need them, fulfilling orders accurately and quickly, managing inventory investment carefully, and operating with lean margins that demand operational excellence. Generic ERP systems designed for […]
Food distribution is fundamentally different from other distribution verticals. You’re not just moving products from point A to point B—you’re managing highly perishable inventory with strict expiration dates, navigating complex regulatory requirements, maintaining cold chain integrity, and operating on razor-thin margins where waste directly impacts profitability. Generic distribution software treats all products the same. It […]
For decades, enterprise software prioritized power over usability. The assumption was simple: if software could do the job, users would learn to operate it regardless of how difficult the interface might be. Training would solve any usability problems. Complexity was the price of capability. This mindset created ERP systems that were powerful but painful to […]
Your warehouse doesn’t exist in isolation. Every receiving transaction affects purchasing and accounts payable. Every pick impacts inventory and sales orders. Every shipment triggers invoicing and accounts receivable. The warehouse is deeply connected to every aspect of your distribution business, yet many companies manage it with software that’s disconnected from their core business system. This […]
Distribution operates on thin margins. Your gross margins might be 15-30%, and after covering all operating expenses, net margins often shrink to single digits. In this environment, controlling overhead isn’t optional—it’s survival. The traditional response to growth has been adding people. More order volume means more order entry staff. More inventory means more people counting […]
Product companies face unique challenges that set them apart from pure service businesses. You’re managing physical inventory across multiple locations. You’re coordinating with suppliers and manufacturers. You’re handling fulfillment and logistics. You’re tracking costs through complex supply chains. You’re balancing supply and demand across dozens or hundreds of SKUs. As your product company grows, the […]
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