# Best Enterprise Distribution ERP Software *By [Nathan Calabrese](https://research.g2.com/insights/author/nathan-calabrese)* Products classified in the overall Distribution ERP category are similar in many regards and help companies of all sizes solve their business problems. However, enterprise business features, pricing, setup, and installation differ from businesses of other sizes, which is why we match buyers to the right Enterprise Business Distribution ERP to fit their needs. Compare product ratings based on reviews from enterprise users or connect with one of G2's buying advisors to find the right solutions within the Enterprise Business Distribution ERP category. In addition to qualifying for inclusion in the Distribution ERP Software category, to qualify for inclusion in the Enterprise Business Distribution ERP Software category, a product must have at least 10 reviews left by a reviewer from an enterprise business. ## Category Overview **Total Products under this Category:** 173 ## Trust & Credibility Stats **Why You Can Trust G2's Software Rankings:** - 30 Analysts and Data Experts - 11,300+ Authentic Reviews - 173+ Products - Unbiased Rankings G2's software rankings are built on verified user reviews, rigorous moderation, and a consistent research methodology maintained by a team of analysts and data experts. Each product is measured using the same transparent criteria, with no paid placement or vendor influence. While reviews reflect real user experiences, which can be subjective, they offer valuable insight into how software performs in the hands of professionals. Together, these inputs power the G2 Score, a standardized way to compare tools within every category. ## Top-Rated Products (Ranked by G2 Score) ### 1. [Microsoft Dynamics 365 Business Central](https://www.g2.com/products/microsoft-microsoft-dynamics-365-business-central/reviews) Grow your business with Microsoft Dynamics 365 Business Central—the first comprehensive business management solution that uses Microsoft Copilot to boost productivity, spark creativity, and improve business performance with next-generation AI. Connect finance, sales, service, and operations teams within a single easy-to-use application that streamlines processes and empowers data-driven decisions. Work seamlessly with Microsoft 365 including Outlook, Excel, and Teams, so employees can get the information they need without switching between applications. Drive continuous improvement and innovation backed by the world-class security, flexibility, and scalability of the Microsoft cloud. Join more than 40,000 small and medium-sized businesses that have moved to the cloud with Dynamics 365 Business Central to work smarter, adapt faster, and perform better. **Average Rating:** 4.0/5.0 **Total Reviews:** 854 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 7.8/10 (Category avg: 8.2/10) - **ATP:** 8.9/10 (Category avg: 8.1/10) - **Order History:** 8.9/10 (Category avg: 8.7/10) - **Demand:** 8.9/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [Microsoft](https://www.g2.com/sellers/microsoft) - **Year Founded:** 1975 - **HQ Location:** Redmond, Washington - **Twitter:** @microsoft (13,105,844 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/microsoft/ (227,697 employees on LinkedIn®) - **Ownership:** MSFT **Reviewer Demographics:** - **Who Uses This:** Controller, Accountant - **Top Industries:** Information Technology and Services, Accounting - **Company Size:** 56% Mid-Market, 24% Small-Business #### Pros & Cons **Pros:** - Ease of Use (89 reviews) - Financial Management (66 reviews) - Integrations (61 reviews) - Finance Management (45 reviews) - Integration Ease (45 reviews) **Cons:** - Learning Curve (51 reviews) - Learning Difficulty (36 reviews) - Missing Features (28 reviews) - Expensive (26 reviews) - Difficult Customization (20 reviews) ### 2. [SAP ECC](https://www.g2.com/products/sap-ecc/reviews) Leverage world-class ERP software. Sharpen your competitive edge and drive growth with enterprise resource planning from SAP. With more than 40 years of experience and nearly 50,000 customers, our market-leading enterprise resource planning (ERP) software is a proven, trusted foundation built to support the world۪s largest organizations as well as small and midsize companies in 25 different industries. Leverage role-based access to critical data, applications, and analytical tools and streamline your processes across procurement, manufacturing, service, sales, finance, and HR. **Average Rating:** 4.2/5.0 **Total Reviews:** 855 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 8.0/10 (Category avg: 8.2/10) - **ATP:** 8.5/10 (Category avg: 8.1/10) - **Order History:** 8.4/10 (Category avg: 8.7/10) - **Demand:** 8.1/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [SAP](https://www.g2.com/sellers/sap) - **Year Founded:** 1972 - **HQ Location:** Walldorf - **Twitter:** @SAP (297,227 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/sap/ (141,341 employees on LinkedIn®) - **Ownership:** NYSE:SAP **Reviewer Demographics:** - **Who Uses This:** Consultant, Assistant Manager - **Top Industries:** Information Technology and Services, Accounting - **Company Size:** 64% Enterprise, 29% Mid-Market #### Pros & Cons **Pros:** - Ease of Use (27 reviews) - Functionality (27 reviews) - Module Integration (22 reviews) - Integrations (21 reviews) - Integration Features (19 reviews) **Cons:** - Time-Consuming (21 reviews) - Complex Setup (19 reviews) - Learning Curve (19 reviews) - User Unfriendliness (18 reviews) - Expensive (17 reviews) ### 3. [SAP Cloud ERP (SAP S/4HANA Cloud)](https://www.g2.com/products/sap-cloud-erp-sap-s-4hana-cloud/reviews) SAP Cloud ERP (SAP S/4HANA Cloud) is a modular ERP designed for every business need, powered by AI and analytics. SAP Cloud ERP enables users to run mission-critical operations in real time from anywhere, introduce new business models in any industry, and expand globally. SAP Cloud ERP is a SaaS product and can also be deployed in a hybrid landscape for quicker time to value.​ SAP Cloud ERP is the foundational component of the SAP Business Suite, a seamlessly integrated system of applications, data, and AI that connects and optimizes every part of your business, enabling smarter decisions, real-time insights, and intelligent automation.​ **Average Rating:** 4.4/5.0 **Total Reviews:** 823 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 8.7/10 (Category avg: 8.2/10) - **ATP:** 8.6/10 (Category avg: 8.1/10) - **Order History:** 9.0/10 (Category avg: 8.7/10) - **Demand:** 9.0/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [SAP](https://www.g2.com/sellers/sap) - **Company Website:** https://www.sap.com/ - **Year Founded:** 1972 - **HQ Location:** Walldorf - **Twitter:** @SAP (297,227 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/sap/ (141,341 employees on LinkedIn®) **Reviewer Demographics:** - **Who Uses This:** Consultant, Senior Consultant - **Top Industries:** Information Technology and Services, Accounting - **Company Size:** 48% Enterprise, 34% Mid-Market #### Pros & Cons **Pros:** - Ease of Use (99 reviews) - Cloud-Based (76 reviews) - Functionality (73 reviews) - Efficiency (71 reviews) - Real-Time Data (69 reviews) **Cons:** - Complexity (68 reviews) - Learning Curve (63 reviews) - Learning Difficulty (59 reviews) - Complex Setup (52 reviews) - Limited Customization (48 reviews) ### 4. [SAP Business ByDesign](https://www.g2.com/products/sap-business-bydesign/reviews) SAP Business ByDesign (ByD) is a comprehensive cloud enterprise resource planning software (Cloud ERP) that is sold and operated as software as a service (SaaS) by SAP SE. It is designed for small to medium-sized enterprises as well as subsidiary businesses. The software is designed to provide business processes across application areas from financials to human resources with embedded business analytics, mobility, e-learning, and support. SAP Business ByDesign is built on the principles of a service-oriented architecture (SOA). The underlying technology is leveraging SAP's in-memory HANA database. A comprehensive set of prepackaged integrations as well as SOAP and oData webservices ensure easy integrations to other SAP or non-SAP applications. The main application areas: Financial Management (FIN) Customer Relationship Management (CRM) Project Management (PRO) and Professional Service Automation (PSA) Supplier Relationship Management (SRM) and Procurement Supply Chain Management (SCM) and Production Human Resource Management (HCM) Fund and Grant Management Integrated Business Analytics Executive support and compliance management. ByDesign is deployed in 144 countries and supports 12 languages. SAP Business ByDesign is available for a monthly software-as-a-service (SaaS) subscription, based on a base package, user types, and number of users. The price includes hosting, unlimited storage, access to all application areas (see above), support etc. Updates are delivered automatically four times a year with no IT staff required. **Average Rating:** 4.0/5.0 **Total Reviews:** 123 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 8.6/10 (Category avg: 8.2/10) - **ATP:** 8.8/10 (Category avg: 8.1/10) - **Order History:** 9.2/10 (Category avg: 8.7/10) - **Demand:** 8.9/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [SAP](https://www.g2.com/sellers/sap) - **Year Founded:** 1972 - **HQ Location:** Walldorf - **Twitter:** @SAP (297,227 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/sap/ (141,341 employees on LinkedIn®) - **Ownership:** NYSE:SAP **Reviewer Demographics:** - **Who Uses This:** Consultant, Senior Consultant - **Top Industries:** Information Technology and Services, Computer Software - **Company Size:** 48% Mid-Market, 38% Small-Business #### Pros & Cons **Pros:** - Accurate Data (2 reviews) - Business Growth (2 reviews) - Cloud-Based (2 reviews) - Data Management (2 reviews) - ERP Solutions (2 reviews) **Cons:** - Business Size Limitations (1 reviews) - Difficult Customization (1 reviews) - Expensive (1 reviews) - Expensive Setup (1 reviews) - Inadequate Reporting (1 reviews) ### 5. [NetSuite](https://www.g2.com/products/netsuite/reviews) As the world's #1 AI Cloud ERP solution for more than 25 years, NetSuite has helped businesses gain the visibility, control, and agility to build and grow a successful business. First focused on financials and ERP, we now provide an AI-powered integrated system that also includes inventory management, HR, professional services automation, and commerce, and is used by more than 43,000 customers in 220 countries. **Average Rating:** 4.1/5.0 **Total Reviews:** 4,550 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 7.4/10 (Category avg: 8.2/10) - **ATP:** 7.2/10 (Category avg: 8.1/10) - **Order History:** 8.1/10 (Category avg: 8.7/10) - **Demand:** 7.2/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [Oracle](https://www.g2.com/sellers/oracle) - **Company Website:** https://www.oracle.com/middleware/technologies/api-manager.html - **Year Founded:** 1977 - **HQ Location:** Austin, TX - **Twitter:** @Oracle (827,310 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/1028/ (199,301 employees on LinkedIn®) **Reviewer Demographics:** - **Who Uses This:** Controller, Accounting Manager - **Top Industries:** Computer Software, Accounting - **Company Size:** 57% Mid-Market, 31% Small-Business #### Pros & Cons **Pros:** - Ease of Use (568 reviews) - Customizability (363 reviews) - Functionality (337 reviews) - Customization Options (320 reviews) - Customization (300 reviews) **Cons:** - Learning Curve (383 reviews) - Improvement Needed (335 reviews) - Missing Features (286 reviews) - Limited Customization (248 reviews) - Not User-Friendly (243 reviews) ### 6. [Acumatica](https://www.g2.com/products/acumatica/reviews) Acumatica Cloud ERP offers best-in-class functionality for small and mid-sized businesses to thrive in the digital economy. Its workflows span the full suite of business management applications, and it is built with open APIs for rapid integrations with other critical software. Its consumption-based licensing charges for resources used, not per user, and its future-proof platform drives value and provides flexibility, efficiency, and remote collaboration. Connected Business. Delivered. Rapid Integrations. Delivered. Remote Collaboration. Delivered. Business Resilience. Delivered. Future-proof platform. Delivered. **Average Rating:** 4.4/5.0 **Total Reviews:** 1,901 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 8.5/10 (Category avg: 8.2/10) - **ATP:** 7.5/10 (Category avg: 8.1/10) - **Order History:** 8.4/10 (Category avg: 8.7/10) - **Demand:** 7.8/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [Acumatica](https://www.g2.com/sellers/acumatica) - **Company Website:** https://www.acumatica.com - **Year Founded:** 2008 - **HQ Location:** Bellevue, WA - **Twitter:** @Acumatica (28,290 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/492504/ (702 employees on LinkedIn®) **Reviewer Demographics:** - **Who Uses This:** Controller, CFO - **Top Industries:** Construction, Manufacturing - **Company Size:** 49% Mid-Market, 28% Small-Business #### Pros & Cons **Pros:** - Ease of Use (557 reviews) - Customizability (224 reviews) - Customization (224 reviews) - Features (201 reviews) - Customization Options (176 reviews) **Cons:** - Missing Features (229 reviews) - Learning Curve (191 reviews) - Difficult Setup (142 reviews) - User Unfriendliness (131 reviews) - Complex Setup (128 reviews) ### 7. [Infor LN](https://www.g2.com/products/infor-ln/reviews) Manufacturers concerned about profitability and performance turn to Infor LN to efficiently manage end to end processes, from production scheduling to supply chain planning. With industry-functionality built-in, Infor LN provides discrete manufacturers with Smart Manufacturing and Industry 4.0 capabilities to keep pace with change and unfolding challenges and opportunities. Infor LN is available on-premise or in the cloud as CloudSuite Aerospace & Defense, CloudSuite Automotive, CloudSuite Engineering & Construction, CloudSuite High Tech and CloudSuite Industrial Enterprise. **Average Rating:** 3.9/5.0 **Total Reviews:** 67 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 7.3/10 (Category avg: 8.2/10) - **ATP:** 8.3/10 (Category avg: 8.1/10) - **Order History:** 9.0/10 (Category avg: 8.7/10) - **Demand:** 7.8/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [Infor](https://www.g2.com/sellers/infor) - **Year Founded:** 2002 - **HQ Location:** New York - **Twitter:** @Infor (18,511 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/1711/ (22,271 employees on LinkedIn®) - **Phone:** 800-260-2640 **Reviewer Demographics:** - **Top Industries:** Electrical/Electronic Manufacturing, Automotive - **Company Size:** 45% Enterprise, 43% Mid-Market #### Pros & Cons **Pros:** - Data Processing (1 reviews) - Functionality (1 reviews) - Problem Solving (1 reviews) - Process Efficiency (1 reviews) **Cons:** - Limited Functionality (2 reviews) - Bug Issues (1 reviews) - Complex Features (1 reviews) - Error Handling (1 reviews) - Feature Issues (1 reviews) ### 8. [ePROMIS ERP](https://www.g2.com/products/epromis-erp/reviews) ePROMIS is a leading global enterprise ERP, HCM, CRM and other business management software solution provider to multiple verticals & industries. ePROMIS ERP - The Next-Gen customizable ERP solution empowers you to synchronize all aspects of your business, share data, drive performance, cut costs, and maximize profitability. ePROMIS ERP tackles the entire spectrum of enterprise functionalities, including finance, supply chain, assets, projects, analytics, human resources, customer relations, and planning. This Full-fledged Enterprise solution can be customized according to the nature and organizational structure of the company, resulting an exclusive enterprise solution integrating proven best practices and organization’s best practices. With ePROMIS Solutions, the sky is the limit. Turn your massive data into insights, keep your workforce productive and get things done quickly with the mighty Business Intelligence tools of ePROMIS Enterprise ERP. **Average Rating:** 5.0/5.0 **Total Reviews:** 44 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 9.9/10 (Category avg: 8.2/10) - **ATP:** 10.0/10 (Category avg: 8.1/10) - **Order History:** 10.0/10 (Category avg: 8.7/10) - **Demand:** 10.0/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [ePROMIS Solutions](https://www.g2.com/sellers/epromis-solutions) - **Year Founded:** 1981 - **HQ Location:** Houston, Texas - **Twitter:** @ePROMISGlobal (1,120 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/3102723/ (99 employees on LinkedIn®) **Reviewer Demographics:** - **Who Uses This:** IT Manager - **Top Industries:** Construction - **Company Size:** 64% Enterprise, 38% Mid-Market ### 9. [Infor M3](https://www.g2.com/products/infor-m3/reviews) Infor M3 is a powerful cloud ERP software solution that uses the latest technologies to provide an exceptional user experience and powerful analytics in a multi-company, multi-country, and multi-site ERP cloud solution platform. Infor M3 and related industry-specific CloudSuite solutions come with industry-leading functionality for the chemical, distribution, equipment, fashion, food and beverage, and industrial manufacturing industries. Infor M3 can help medium to large national and global organizations quickly move into the digital age, respond faster to change, reduce excess inventory, and cut costs. In addition, it helps you manage your network of people, technology, activities, information, and resources efficiently and economically. Flexible deployment options and implementation accelerators offer a low total cost of ownership and short time to value. **Average Rating:** 3.8/5.0 **Total Reviews:** 104 **User Satisfaction Scores:** - **Has the product been a good partner in doing business?:** 7.2/10 (Category avg: 8.2/10) - **ATP:** 7.2/10 (Category avg: 8.1/10) - **Order History:** 6.7/10 (Category avg: 8.7/10) - **Demand:** 7.2/10 (Category avg: 8.1/10) **Seller Details:** - **Seller:** [Infor](https://www.g2.com/sellers/infor) - **Year Founded:** 2002 - **HQ Location:** New York - **Twitter:** @Infor (18,511 Twitter followers) - **LinkedIn® Page:** https://www.linkedin.com/company/1711/ (22,271 employees on LinkedIn®) - **Phone:** 800-260-2640 **Reviewer Demographics:** - **Top Industries:** Apparel & Fashion, Hospital & Health Care - **Company Size:** 48% Enterprise, 46% Mid-Market #### Pros & Cons **Pros:** - Accurate Data (1 reviews) - Data Management (1 reviews) - Easy Access (1 reviews) - Tracking (1 reviews) - Tracking Efficiency (1 reviews) **Cons:** - Difficult Learning (1 reviews) - Difficulty (1 reviews) - Learning Difficulty (1 reviews) - Understanding Difficulty (1 reviews) - User Unfriendliness (1 reviews) ## Parent Category [ERP Software](https://www.g2.com/categories/erp) ## Related Categories - [Accounting Software](https://www.g2.com/categories/accounting) - [ERP Systems](https://www.g2.com/categories/erp-systems) - [Discrete ERP Software](https://www.g2.com/categories/discrete-erp) --- ## Buyer Guide ### What You Should Know About Distribution ERP Software ### What is Distribution ERP Software? Distribution enterprise resource planning (ERP) software provides distributors and wholesalers with comprehensive solutions for all tasks involved with distributing goods. This management system includes fleet management, warehouse management, inventory control, marketing, shipping, and customer relationship management (CRM). Rather than installing individual software for each step in the distribution supply chain, distribution ERP software provides functionality for all distribution processes by streamlining them using one single platform. A distribution business (also known as a wholesale distribution) buys finished products from manufacturers and sells them to other companies or individuals. Some distribution companies may also acquire finished goods, which they sell to manufacturers. To help these companies, a distribution ERP software provides a central repository to manage all processes involved with distribution, helps maintain better relationships with customers, and allows users to analyze their operations' financial and operational performance accurately. #### What Types of Distribution ERP Software Exist? There are a few major types of ERP solutions for distribution: **Cloud or on-premises** Cloud ERP is slowly replacing legacy systems delivered on premises, and distribution ERP is no exception to the rule. There are two types of cloud ERP solutions for distribution—traditional on-premises software that have been modernized and moved to the cloud, and cloud-native products that are only available as a subscription model (or software as a service (SaaS)). **Industry agnostic or vertical-focused** The wholesale distribution sector covers multiple industries from manufacturing and retail to construction and minerals. Each of these industries requires special transportation and storage conditioning. For instance, food distribution relies on refrigerated trucks and warehouses, while chemical distribution requires protection from potentially dangerous hazardous materials. A distribution ERP solution for food and beverage companies should provide features to manage expiry dates and sales in bulk or batches (as opposed to pieces and units for discrete products).  **Standalone or part of ERP systems** While some ERP solutions focus exclusively on distribution, ERP for manufacturing software also provides features for logistics. Manufacturers who need advanced logistics features would benefit more from using ERP systems such as [discrete ERP](https://www.g2.com/categories/discrete-erp), [ETO ERP](https://www.g2.com/categories/eto-erp), and [mixed mode ERP](https://www.g2.com/categories/mixed-mode-erp). ### What are the Common Features of Distribution ERP Software? An ERP system dedicated to distribution is built to serve every business function involved in the distribution process. As such, distribution ERP systems include a wide variety of features and functionalities. From procurement to shipping, the features listed below help any company manage its entire distribution process. **Accounting** : Financial management features allow distributors to manage accounts payable, accounts receivable, general ledgers, and other financial aspects involved in the distribution process. Distributors can also set up different modes of payment on their invoices to ensure timely payments from their customers. **Inventory:** Distributors need to track the inventory of finished goods stored in their warehouses across multiple locations. Distribution ERP allows inventory managers to monitor inventory movements in real time to ensure that the company can fulfill their customers' orders. **Warehouse management** : Warehouse management features allow distributors to manage all aspects of their inventory. This includes inventory control features that track sales orders and match them with inventory availability and business intelligence features that allow distributors to identify stock that is not being purchased. **Purchasing** : Distributors create purchase orders to fulfill customer demand. Proactive companies may also acquire goods based on demand forecasting, without having firm orders from customers. Distribution ERP helps the purchasing departments find the optimal balance between the quantities ordered and customer demand. **Sales and marketing:** Most distribution ERP systems have customer relationship management (CRM) features that allow users to engage with customers on a more personal level. CRM features provide an entire overview of a customer's profile with contact activity, purchase history, contact information, and related selling opportunities. This helps drive more meaningful and effective customer communication. Also, some distribution ERP systems provide an internet portal for customers, which allows them to place orders and track the estimated arrival time (ETA) on shipping. **Assembly** : Distribution companies don't need manufacturing software but may sometimes require functionality for "light" production, sometimes referred to as assembly or [kitting](https://www.g2.com/categories/distribution-erp/f/kitting). Assembly refers to combining components to create a product (similar to Ikea furniture) while kitting bundles products that can be sold together (like a shirt and a tie). These operations do not require manufacturing software but need to be managed to reduce waste and optimize processes, especially for high-volume assembly and kitting. **Logistics:** To be effective, distributors need to track the movement of goods from suppliers to customers accurately. Distribution ERP provides functionality to address this challenge, such as receiving, picking and packing, and shipping. A distribution ERP software is also tailor made for warehousing operations. **Human resources (HR):** The HR modules of distribution ERP solutions are usually limited to [workforce management](https://www.g2.com/categories/distribution-erp/f/workforce-management) and [payroll](https://www.g2.com/categories/distribution-erp/f/payroll). Functionality for talent management is delivered through integration with human capital management systems. **E-commerce** : Some distribution ERP systems allow users to set up digital storefronts from within the software. If the user chooses to set up a digital storefront, the website can be linked to inventory available so that customers can access a complete product catalog. B2B e-commerce features such as order management are often included in the software.  **Analytics** : Analytics dashboards allow distributors to evaluate trends and operational data within their business. Users may tailor dashboards to look at inventory performance, shipment times, and sales opportunities to gather more business intelligence. Other features of distribution ERP software: [BOM](https://www.g2.com/categories/distribution-erp/f/bom), [Disassembly](https://www.g2.com/categories/distribution-erp/f/disassembly), [Integrations](https://www.g2.com/categories/distribution-erp/f/integrations), [Payment Batches](https://www.g2.com/categories/distribution-erp/f/payment-batches), and [Time & Attendance](https://www.g2.com/categories/distribution-erp/f/time-attendance). ### What are the Benefits of Distribution ERP Software? Distribution ERP software is beneficial in multiple ways, the most common being: **Single source of truth** : Distribution ERP software is meant to function as a centralized business management system to manage all front-end and back-office activities for wholesale and distribution companies. From warehouse management to shipping to a customer's front door, distribution ERP software provides features to help wholesale and distribution companies ensure that all their operations and business needs are streamlined. **Supply chain visibility:** One of the core reasons to implement a distribution ERP software is for achieving unified visibility into all the distribution processes. The distribution ERP system may be considered a unified software that connects workflows from various business departments. For example, suppose a retail worker makes a sale and records the sold product in the distribution ERP software. In that case, this will automatically alert the warehouse on inventory levels within that particular store. This will let the warehouse know if stock is running low in that specific store and whether they need to send out more shipments. Increased visibility ensures that departments stay connected, allowing businesses to react quickly. **Sales and inventory forecasting:** Distribution ERP software makes it easier to plan and forecast demand. Using historical sales and procurement data stored in the software, distributors and suppliers can evaluate which products are in high demand or underperforming. This helps with more accurate sales forecasts and signals the potential financial health of a business. **Increased profitability:** Distribution ERP tracks all costs associated with distribution activities, such as product costs, shipping and handling, order processing, and returns. By comparing these costs with sales numbers, the distributor can calculate its level of profitability.  **Improved customer satisfaction** : Distribution ERP software makes it easier for distributors to deliver the right products at the right time. With enhanced visibility across the supply chain, customers who place an order on the digital storefront will automatically alert the workers in the warehouse to start packing the order. Once those orders are packed and shipped, the drivers can participate in live communication with fleet managers and customers with updates on when their shipments will arrive. In today's business world, quick shipping times and visibility for customers are crucial to staying competitive. ### Who Uses Distribution ERP Software? Distribution ERP systems are used mainly by departments in charge of purchasing, inventory, warehousing, and logistics. These departments are often found at e-commerce companies, wholesale distributors, and other retail and supply chain businesses. While departments involved with logistics are the primary users for distribution ERP software, the all-encompassing nature of the software allows other departments to benefit from its offerings. This includes sales teams, marketers, and accountants. **Inventory managers** : Distribution ERP software provides inventory management and control, generates inventory count documents for cycle counts, tracks sales orders and matches them with inventory availability, and includes features to manage warehouses across multiple locations. These features let warehouses have full visibility over their inventory, allowing them to streamline processes for packing and shipping. **Procurement:** Procurement professionals use this software to identify and fulfill the demand for raw materials and finished products. The system calculates the quantities needed to fulfill customer orders and determines the optimal suppliers for these products based on their past performance. **Logistics:** Distribution ERP tools help logistics teams plan and monitor activities such as inventory receiving, picking and packing, and shipping. Users can also use the system to outsource operations such as shipping and warehousing and to manage relationships with partners and suppliers.  **Sales:** Sales teams use distribution ERP to create and track sales quotes, orders, and invoices, as well as maintain relationships with customers and prospects. By integrating with the inventory module, salespeople can provide customers with information on product availability or an estimated delivery time. Also, sales can track product returns to identify low-performing products and dissatisfied customers. **Accounting:** Accountants track costs and profitability of the company using distribution ERP. Most solutions include complete accounting modules with charts of accounts, general ledgers, and financial management features.   ### What are the Alternatives to Distribution ERP Software? Alternatives to distribution ERP software can replace this type of software, either partially or completely: [ERP systems](https://www.g2.com/categories/erp-systems): ERP systems provide functionality for multiple businesses such as manufacturers, professional services providers, and logistics companies. A distribution company can benefit from using ERP systems to expand its operations in new industry segments not covered by distribution ERP solutions. [Supply chain suites](https://www.g2.com/categories/supply-chain-suites): Supply chain management (SCM) suites can be very similar to distribution ERP, with a few notable exceptions. Firstly, SCM suites do not include modules for accounting and finance. They also usually provide advanced features for logistics operations such as transportation, which aren't always included in distribution ERP software. #### Software Related to Distribution ERP Software Related solutions that can be used together with a distribution ERP software include: [E-commerce platforms](https://www.g2.com/categories/e-commerce-platforms) **:** While some distribution ERP systems allow users to set up their e-commerce stores, integrating with more robust e-commerce platforms will allow users to access a broader range of features. This also enables users to link their inventory to achieve increased accuracy in the depiction of stock levels. [Accounting](https://www.g2.com/categories/accounting) **:** Since financial management features of distribution ERP solutions can be limited, integration with accounting software is often required. For instance, distribution ERP solutions may provide invoicing and cost management functionality but don't always cover requirements such as intercompany transactions or revenue optimization. [Sales](https://www.g2.com/categories/sales) **:** Sales and CRM features such as lead generation and marketing campaigns aren't always included in distribution ERP software, which is why distributors often need to integrate their ERP with CRM and marketing automation tools. [Core HR](https://www.g2.com/categories/core-hr) **:** As mentioned above, a distribution ERP software may include HR features such as payroll, but advanced functionality requires integration with talent management or core HR software. Distributors may also choose to buy separate payroll software for specific business needs such as global payroll. [Retail POS](https://www.g2.com/categories/retail-pos): Many distribution ERP systems include point of sale (POS) features. When POS is not part of ERP, users can seamlessly integrate the ERP system with POS software. When a customer makes a purchase, this automatically updates inventory levels in stores and tracks that product's sales performance. ### Challenges with Distribution ERP Software While a distribution ERP software helps close many visibility gaps within a warehouse and across the supply chain, it comes with its own set of challenges. From implementation time to cost, users should be aware of these potential issues, which can impact any company's bottom line in the distribution industry. **Cost** : The biggest issue with any distribution management software is its expensive nature. With the average price of an ERP software ranging in the thousands, it may be a costly sum for any small or growing business to incur. The price varies based on the number of users on each ERP system, with the cost dramatically increasing with every new user. On the contrary, it should also be noted that ERP software is meant to last at least five years or longer within a business's technology stack. For companies that have the financial means, this may prove to be an intelligent investment. This is primarily because ERP systems cover all business processes through one software rather than introducing the need to install many disparate solutions. **Implementation time** : ERP software takes a long time to implement across all departments. It may take anywhere from a few months to a couple of years as users shift from old legacy systems that likely housed all of their distribution data. Users should be aware of these long implementation times and practice patience when it comes to implementation. ### Which Companies Should Buy Distribution ERP Software? As opposed to industry-agnostic ERP software, this type of software focuses on the business needs of the following type of companies: **Wholesalers and distributors:** Medium and large manufacturers have departments or divisions in charge of distribution when they don't outsource logistics operations. These business units may need a separate ERP system from the other departments, and it's not unusual that manufacturers use multiple ERP solutions for different purposes.  **Manufacturers** : Medium and large manufacturers have departments or divisions in charge of distribution when they don't outsource logistics operations. These business units may need a separate ERP system from the other departments, and it's not unusual for manufacturers to use multiple ERP solutions for different purposes.  **Retailers:** Many distribution ERP solutions provide retail features such as POS, which allow retailers to use the same system for all in-store activities and front-office and back-office operations. These features enable retailers to look up customer part numbers and vendor part numbers quickly. Additionally, the POS system accepts various payment types to ensure that every customer has their needs met. [**Third-party logistics providers**](https://www.g2.com/categories/distribution-erp/f/third-party): 3PL companies manage logistics operations on behalf of their customers. A distribution ERP system allows them to manage the inventory of their customers and the movement of goods from suppliers to the end users. ### How to Buy Distribution ERP Software #### Requirements Gathering (RFI/RFP) for Distribution ERP Software The requirements list should include essential features needed by the buyer to manage operations. When buyers already use accounting software they don't intend to replace, requirements for financial management should not be included in the list. Instead, requirements for integration between the ERP software and the existing accounting software should be part of the requirements list. #### Compare Distribution ERP Software Products **Create a long list** A long list should include all options that may provide the buyers with the functionality they need. The long list should consist of both distribution ERP software and ERP systems with logistics modules if the buyer is a manufacturer. **Create a short list** The best way to create a short list is to eliminate products from the long list using criteria, such as the software's delivery model or the vendor's global presence. Buyers may also eliminate vendors that are not willing to respond to their RFIs or RFPs. **Conduct demos** Demos should focus on how each product provides real-time data and supports distribution activities such as replenishment and warehouse operations. It is also essential to evaluate how user friendly a software is. The user experience is critical for all types of users, from regular employees to managers and mobile employees like truck drivers. #### Selection of Distribution ERP Software **Choose a selection team** The selection team includes managers from all departments that would benefit most from using the software, such as procurement, logistics, warehouse, and inventory management. The team can also include members of other departments that will use the system, such as sales, accounting, and HR. Also, complex selection projects may require a dedicated project manager and external consultants with experience in the field. **Negotiation** The products on the short list are usually very similar, so buyers need to negotiate with each vendor to make a final decision. The price of the software is an integral part of the negotiation process, as well as the services that the vendor provides. As vendors tend to bundle software and services together, buyers need to evaluate the value of their offering, not only its cost. For instance, low-cost software that only provides basic features for distribution may offer less value per dollar spent than a more expensive advanced solution that includes customization and unlimited support. **Final decision** All things considered, the estimated ROI of the software is the most crucial factor when making the final solution. While vendors usually provide an estimated ROI of their software, buyers should request proof that holds the vendor accountable for their offering. For example, buyers can ask to talk with companies similar to theirs to evaluate how the software helped them. A food distribution company should not accept references from wholesalers in other industries such as fashion or electronics. ### What Does Distribution ERP Software Cost? While the pricing of distribution ERP is usually straightforward, buyers should try to identify any hidden costs. For instance, electronic data interchange (EDI) functionality is included, but it requires configuration for different trading partners.  If buyers plan to expand their operations, they should know how much it will cost them to add new users or implement the system in a new location. #### Return on Investment (ROI) The estimated ROI mentioned above can be compared with the actual benefits of the software, such as cost reductions or increased sales volumes.  ### Implementation of Distribution ERP Software **How is Distribution ERP Software Implemented?** Distribution ERP software implementation requires careful planning, a dedicated team, and multiple activities, such as data migration, configuration, testing, and training. **Who is Responsible for Distribution ERP Software Implementation?** The selection team members are usually involved in the implementation since they already have some experience with the software. Vendor partners can be involved when the system is implemented in multiple locations or business units. Vendors also generally provide a dedicated project manager for complex implementations. **What Does the Implementation Process Look Like for Distribution ERP Software?** A phased implementation is preferable for complex operations across multiple locations, such as global manufacturing companies with logistics divisions. The locations or business units that benefit most from using the software should be implemented first. A distribution center should be up and running before manufacturing facilities relying on it start using the system.  **When Should You Implement Distribution ERP Software?** The implementation of distribution ERP software should have a minimum impact on the operations of the buyer. For example, distributors whose peak season is during the winter holidays should avoid implementing new software during this time. Buyers also need to be ready for the implementation of the new system. This means that the company has enough employees to use all the components of the software. The data that needs to be transferred to the new system should be up to date and accurate. While vendors can help with data cleansing, the buyer is responsible for activities like inventory counts. A distributor should not start using a new software unless they know exactly how many products they have on hand for each location, storage at external warehouses, or in transit from suppliers. ### Distribution ERP Software Trends Some significant trends permeating the distribution market include increased visibility and more automation across the supply chain. Here are some trends that may emerge in the foreseeable future of distribution ERP software: **Omnichannel retail** Omnichannel retail is a growing trend that allows customers to shop and return items through various retail channels. For example, a customer can buy a product online and then return that item in a physical storefront for a refund if they are dissatisfied with the item. For businesses, this means keeping track of that particular item with barcodes and item numbers to account for the fact that the product has been purchased and returned. Distribution ERP systems help improve inventory visibility to help them keep track of the available products in stock. **Internet of things (IoT)** IoT technologies further help warehouses and distributors maintain visibility on the whereabouts of their entire inventory. For example, distributors can attach radio-frequency identification (RFID) tags to essential or higher-priced products to have complete visibility over them until they are sold. With RFID tags attached to products, customers also have real visibility into a product's exact location at any given time. This helps with delivery ETAs and notifications on any delays with a product's shipment.