Best Distribution ERP Software Of 2024

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Why We Picked SAP S/4HANA Cloud

As a free trial user of SAP S/4HANA Cloud, I can confidently say it excels in simplifying core business processes and offers top-notch capabilities. Our analysts give a perfect 100 for their Finance, Procurement and Supply Chain Management modules.

SAP S/4HANA Cloud is a robust ERP solution widely used across various industries due to its flexible, modular design and comprehensive functionality. After trying it firsthand, I was surprised by the initial setup. It was smooth and intuitive, with sample data and guided tours provided to explore all modules easily.

The main menu and search bar were easy to navigate without redirects. I also liked how user-friendly the interface felt, especially for a first-time user.

The finance module stood out to me. It provides a centralized dashboard where you can store and generate all sorts of reports, and it's easy to keep track of payments and overdue invoices. For someone looking to optimize manufacturing, it offers real-time visibility into operations, making it easier to meet customer demands efficiently.

That said, the free trial had its limitations. I couldn’t access all features or sample data completely, which made it harder to fully explore the system’s potential.

That being said, our analysts rated the Finance, Procurement, and Supply Chain Management modules a perfect 100. Many recent reviews have echoed the same sentiment, praising its real-time inventory view and automated workflows. However, others mentioned the inability to customize workflows during the trial.

Users also pointed out the system’s complexity, but I personally found it easier to navigate than expected with the sample data. Still, I’m unsure how it would perform with real-time data in an actual business setting.

Pricing wasn’t listed directly on the site, but compared to competitors, SAP S/4HANA costs—including implementation, licensing and training—are higher, especially for smaller organizations with tighter budgets.

Overall, SAP S/4HANA Cloud is a powerful tool with advanced capabilities, though its learning curve and customization limitations may be challenging for some. For larger organizations with the budget and resources to implement it fully, it can significantly improve operations and drive growth.

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Pros & Cons

Real-Time Inventory Visibility: It optimizes stock levels and avoids stockouts with instant inventory updates, reducing carrying costs and boosting customer satisfaction.
Purchase Order Accuracy: Some users say automating purchase order generation based on real-time inventory and demand has minimized errors in procurement.
Production Planning: It refines production schedules and resource allocation with real-time data insights from connected machines and sensors, increasing efficiency and output.
Financial Reporting: Many users appreciate the ability to generate accurate and timely financial reports with automated data consolidation from all departments.
Sales Team Productivity: It gives the sales team the ability to access customer data and manage orders directly from mobile devices. This increases overall productivity and works efficiently from anywhere.
Automatic Updates: Users say that SAP manages regular updates and maintenance, ensuring up-to-date features and security patches without the need for external resources.

Steep Learning Curve: It can be tough to transition from traditional ERPs to a new interface and cloud-based model. This could affect initial productivity, requiring user training to get fully up to speed.
Limited Customization: Users say the customization options are limited compared to on-premise systems. The ability to tailor the system for specific business needs is restricted.
Integration Challenges: Users find integrating with older, non-S/4HANA systems challenging. The process often requires additional tools and expertise, which can increase the complexity and overall costs.
Vendor Lock-in: Some users mention the reliance on SAP's cloud infrastructure makes it harder to switch to alternative solutions later. This dependency can reduce flexibility for future expansion.
High Subscription Costs: Some users say the cost of the software is a big barrier for small businesses since the initial implementation and ongoing subscription fees are relatively high.
Response Time: Customer support could be more responsive and efficient in addressing issues. Users mentioned that providing more thorough assistance would enhance the overall customer experience.

Key Features

Financial Management: The SAP S/4HANA financial and accounting management tool scored 100 in our assessment. Below are some key capabilities:
- Run your business efficiently using built-in best practices, reporting and predictive analytics to maintain compliance and manage risks.
- Analyze your revenue and costs in real time, allowing you to view data across various dimensions to understand profitability at any level of detail.
- Automatically record financial transactions as they occur, ensuring reports are up-to-date while supporting multiple accounting principles for asset valuation.
- Use KPIs to monitor and manage payables, receivables, and cash flow, giving you a real-time view of key financial metrics through a centralized dashboard.
- Prioritize payments, track overdue invoices and identify high-risk customers to help your team manage costs more effectively and reduce the risk of bad debt.
- Centralize tax and financial reporting, ensuring that all departments access the same consistent data, while guiding users through an interactive financial analysis process.
Sales Management: The SAP S/4HANA Sales module offers effective order and contract management, incentive and commission management, and support for sales teams. Its key capabilities include:
- Manage the order-to-cash process efficiently across various revenue streams, including physical and digital goods, services, subscriptions, projects and bundles.
- Oversee bundled orders from one place, tracking profit, cost and revenue for each order line item. Automate alerts for project changes, deadlines and expirations.
- Equip sales reps to sell more effectively with a personalized home page, intuitive interface and quick access to tasks, applications and reports.
- Create sales orders from unstructured data like PDF or image-based purchase orders using machine learning to extract information automatically.
- Simplify incomplete sales order documentation with AI-powered autocomplete, which suggests missing fields based on historical data.
- Automate invoicing by integrating billing and accounting, improving cash flow accuracy and simplifying accounts receivable, all while meeting local requirements.
Supply Chain Management: The SAP S/4HANA Supply Chain tool achieved an outstanding score of 100 in our assessment, surpassing Visibility ERP and Oracle Fusion Cloud. It offers users a range of capabilities, including:
- Get real-time visibility into your supply chain with customizable dashboards. Track inventory, predict stock trends with AI and monitor deliveries instantly.
- Automatically confirm and process customer orders, ensuring that they align with business priorities to meet customer expectations.
- Help teams cut costs and reduce waste with easy-to-use mobile apps for packing goods more efficiently as part of the logistics process.
- Shorten delivery times by making sure you have the right vehicles, optimized routes, and the right quantity of goods, saving both time and fuel.
Manufacturing Management: The SAP S/4HANA Manufacturing module is built on methods like lean control, continuous improvement and just-in-time replenishment. It can:
- Optimize production by integrating processes smoothly, whether you're manufacturing to stock, order or custom specifications.
- Meet customer demands by identifying and fixing capacity issues, bottlenecks or shortfalls early, using planning simulations to find the best solutions.
- Balance supply and demand with real-time material requirements planning (MRP). The system immediately flags MRP exceptions and helps you resolve them quickly.
- Ensure timely product delivery by tracking each container’s status with a real-time graphical Kanban board.
- Deliver high-quality products by running quality inspections throughout the production process.
Procurement Management: The SAP S/4HANA Procurement module offers a scalable, value-driven and compliant process for managing operations. Its key features include:
- Easily view and update all purchase requisitions at once. The Joule copilot simplifies how employees collaborate during procurement tasks.
- Efficiently manage the entire procure-to-pay process, with real-time insights available at every stage.
- Identify bottlenecks and cost-saving opportunities with a customizable dashboard that shows all key tasks. Automate workflows for purchase orders, contracts and invoices, and analyze them in detail.
- Improve purchase contracts by setting up approval workflows. Track contract usage, plan renewals and negotiate long-term discounts with suppliers.
- Predict delivery dates for purchase orders to improve planning and avoid production delays.
- Make informed decisions by accessing real-time purchasing data without needing to open multiple reports.

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Sage X3

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^$24,000

Annually

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Why We Picked Sage X3

User reviews of Sage X3 reveal a powerful ERP solution with a strong emphasis on scalability and flexibility. Users praise its ability to adapt to specific business needs and grow alongside a company's expansion. One user highlights this strength, stating, "Sage X3 offers extensive customization options to adapt to your unique business processes and workflows. This allowed us to tailor the software to our specific needs and avoid being forced to adapt our processes to the software." This flexibility is crucial for businesses operating in dynamic environments. However, some users find the initial setup and learning curve of Sage X3 to be complex and challenging. One reviewer notes, "While the extensive customization options can be a benefit, they can also make it more difficult to upgrade and maintain the software. This can lead to increased costs and system downtime." These concerns are particularly relevant for smaller businesses with limited IT resources. Despite the complexities, many users appreciate Sage X3's superior reporting capabilities compared to competitors like Microsoft Dynamics 365 Business Central. One user points out, "While Microsoft Dynamics 365 Business Central provides basic reporting capabilities, some users find it to be insufficient for their needs. Sage X3, on the other hand, offers deeper insights and flexible reporting options." This advantage enables businesses to make data-driven decisions with greater confidence. Overall, Sage X3 earns positive user reviews for its robust features, adaptability, and strong reporting capabilities. However, its complexity and potential cost considerations require careful evaluation before implementation. Choosing the right ERP solution depends on a company's specific needs, resources, and long-term growth plans.

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Pros & Cons

Seamless Interface: Of the users who discussed the user interface, 45% said it was easy to use.
Vast Amount of Features: This software is equipped with an abundant amount of features including a dashboard, reporting, inventory management, accounting, and fixed assets, according to 76% of users.
Scalability: Sage X3 can grow with your business, accommodating increasing data volumes and user needs. This is crucial for businesses that anticipate significant growth in the future.
Flexibility: Sage X3 offers extensive customization options to adapt to your unique business processes and workflows. This allows you to tailor the software to your specific needs and avoid being forced to adapt your processes to the software.
Integration: Sage X3 seamlessly integrates with other business applications, streamlining data flow and eliminating silos. This improves efficiency and productivity by giving you a unified view of your business data.
Security: Sage X3 employs robust security measures to protect your sensitive data. This gives you peace of mind knowing that your information is safe.
Support: Sage provides comprehensive training and support resources to help you get the most out of your investment. This ensures that you have the resources you need to be successful with Sage X3.

Old-Fashioned Design: Roughly 54% of users stated Sage Business Cloud X3 has a clunky implementation process and an old-fashioned design.
Unexpected Error Messages: According to 76% of users, vague and unexpected error messages appear far too often.
Complexity: Sage X3 can be complex and challenging to learn and use, especially for businesses with limited IT resources. This can lead to user frustration and errors.
Cost: Sage X3 can be expensive to implement and maintain, especially for small businesses. The initial licensing fees, ongoing subscription costs, and potential customization expenses can be significant.
Reporting: While Sage X3 provides basic reporting capabilities, some users find it to be insufficient for their needs. Advanced reporting often requires the use of additional third-party tools or customization.
Customization: While the extensive customization options can be a benefit, they can also make it more difficult to upgrade and maintain the software. This can lead to increased costs and system downtime.
Support: Some users have reported that Sage's customer support can be slow and unresponsive. This can be frustrating when you need help troubleshooting issues or resolving problems.

Key Features

Budgeting and Accounting: Sage X3 contains essential accounting functions such as accounts payable and receivable, general ledger, budgeting and fixed asset management. The system allows for an unlimited number of currencies to be used and contains exchange rates to help global companies centralize their finances. Tax management is also included in this tool.
Purchasing: The purchasing tool includes supplier and product management features, purchase requests and supplier invoices among many other components. The tool allows users to monitor the quality of suppliers, manage product serial numbers, take requests for quotation into account and calculate reorder suggestions.
Inventory Management: The inventory management tool has multi-warehouse, multi-company and multi-site support, meaning users may track and manage inventory across various geographic locations. The program also includes quality control features and can assist in the tracking and preparation of stock movements.
Sales Management: Sage X3’s sales management tool enables transactions conducted across different sites to be done automatically. It allows for different prices and discounts to be applied along with also controlling sales quotes and shipment preparation. It assists in the creation of invoices and is compliant with the EU Exchange of goods declaration.
BOM Planning: BOM management is a component of the production management tool that allows users to conduct changes for a product and BOM. With this system, users may control the use of a product in different flows, such as sales, manufacturing, subcontracting and stock issues. Mass maintenance and a view of current bills of material are also provided.
Shop Floor Control: Sage X3’s shop floor control component accounts for direct and indirect labor. Users can also track actual and elapsed time spent working on various tasks. Important labor factors such as break time entry and attendance are included to help ensure that time is being used efficiently and appropriately.
Quality Control: This system supports the management of expiration dates, quality control record creation and serial number management. Stock can also be marked as either accepted, rejected or inspected so items that don’t meet standards won’t get sent to customers. Re-inspection and sampling management are also included in Sage X3.

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Pricing

License/Subscription Cost	On-premise: Perpetual license fee includes an upfront cost to own the software plus IP for a fixed term, along with a server license on top of the named user license, maintenance and support fees, customization, implementation and integration Cloud-based/SaaS: Recurring subscription-based model: per module, per user, per month The monthly subscription price includes access to Sage Business Cloud X3, Sage Business Care support and access to all updates and upgrades Actual licenses and subscriptions for Sage Cloud are also sold through Sage Certified Partners
Maintenance Cost	On-premise: Cost is above and beyond the license fee Users have to enter into a maintenance agreement for annual support and maintenance, the cost of which is in the range of 10% to 20% of the original license fee Cloud-based/SaaS: Not included in the subscription cost Additional upgrades and updates are included in the subscription fee via Sage Business Care support
Installation/Implementation Cost	On-premise: Cost is above and beyond the upfront license cost Cloud-based/SaaS: Cost is over and above the subscription cost For both types of deployment: Cost varies based on number of users, system architecture, implementation scope and complexity, company size, industry, additional applications, add-ons and third-party integrations Cost varies depending on who’s providing the implementation services: Sage, in-house or outsourced/third-party Cost varies depending on the implementation partner chosen and is typically charged on a per-hour basis
Customization Cost	For both types of deployment, cost varies depending on applications and modules added, such as materials management, sales & order management, financial management, production management and CRM Cost varies depending on data elements to be tracked, UI changes, workflows complexity, dashboard, management and operational requirements
Data Migration Cost/Change Management/Upfront Switching Cost	For both types of deployment, cost varies depending on the amount of data to be migrated, availability of migration tools, complexity of data and gaps between the existing system and the new system
Recurring/Renewal Costs	On-premise: Annual recurring fees are paid over and above the upfront cost for annual renewal, upgrades, ongoing support and maintenance, customization, third-party integration and training Cloud-based/SaaS: Renewal cost is included in the subscription, based on number of users, add-on user licenses, customization, third-party integration and training

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NetSuite

Start Price

^$999

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Why We Picked NetSuite

User reviews for NetSuite ERP paint a mixed picture, highlighting both its strengths and weaknesses. Many users praise its comprehensive features and real-time data visibility, reporting improvements in efficiency and collaboration. One user commented, "NetSuite has transformed our business by automating tedious tasks and providing us with a single source of truth for all our data." Another added, "The collaboration features are fantastic – we can now work together seamlessly across different departments, which has boosted productivity significantly." However, users also raise concerns about the complexity of the platform and its high cost. Some find the learning curve steep and the customization options limited compared to competitors like SAP Business One and Microsoft Dynamics 365. One user noted, "NetSuite was initially overwhelming for our team due to its complexity. We had to invest heavily in training just to get started." Another commented, "The cost was a major barrier for us. We found other ERP solutions that offered similar features at a fraction of the price." The issue of vendor lock-in is another recurring concern among users. Switching to a different ERP system can be challenging due to data migration issues and dependence on NetSuite's proprietary features. One user expressed their apprehension, "We're worried about getting locked into NetSuite's ecosystem. Switching to another provider seems like a huge headache." Overall, user reviews suggest that NetSuite ERP is a powerful and feature-rich solution but comes with a steep learning curve and high cost. While it may be the perfect fit for large organizations with complex needs and significant resources, smaller businesses might find it overwhelming and expensive. When evaluating NetSuite, it's crucial to carefully consider your specific needs, budget, and technical expertise before making a decision.

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Pros & Cons

Real-time data and visibility: Gain immediate insights into your business performance with real-time access to all your data.
Improved efficiency and automation: Automate routine tasks and streamline workflows to boost productivity across your organization.
Enhanced collaboration: Break down departmental silos and foster better communication across teams.
Scalability and flexibility: Adapt NetSuite to your unique needs and accommodate your business growth.
Comprehensive features: Manage all aspects of your business operations with a single platform.
Improved decision-making: Get data-driven insights to make informed and strategic decisions.
Strong customer support: Reliable support is available through multiple channels to ensure your success.
High security and compliance: Secure your data and meet industry regulations with robust security features.

High cost: NetSuite's initial implementation and ongoing maintenance fees can be significant, especially for small businesses.
Steep learning curve: The platform's extensive features require significant training and user adoption efforts.
Limited customization options: While customizable, NetSuite requires technical expertise and can be costly compared to competitors.
Vendor lock-in concerns: Switching to a different ERP provider can be challenging due to potential data migration issues and dependence on NetSuite's proprietary features.
Integration challenges with certain applications: While NetSuite offers pre-built integrations, connecting with niche or less popular applications might require complex manual data entry or third-party solutions.

Key Features

Sales Order Management: The sales order management tool provides automation that works to reduce manual errors and to speed up the billing and order management process. It is also integrated with other business functions such as finance and fulfillment.
Source Management: This tool helps ensure compliance during the purchasing process through its centralized supply portal. It also has forecasting abilities that are able to recalculate predictions based on actual fluctuations.
Warehouse Management: The warehouse management feature streamlines warehouse operations by decreasing overhead and cycle times. It can also improve rates of on-time delivery, therefore improving customer retention and ultimately boosting revenue.
Production Management: The production management tool is integrated with CAD and PLM functionality. This feature assists in the development of quotes, tracking of contract renewals and cost estimation.
Manufacturing Accounting: All of the basic features of accounting are present in this tool, from invoicing to forecasting. It can also help your company determine the amount of taxes you need to pay based on factors such as location and revenue.
Transportation and Logistics: This tool is well-integrated with IoT functionality, as it lets you see in real-time where your transportation units are located. The logistic side of this tool provides inventory estimation based on historical data to help you decide what to order more of and what to order less of.

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Pricing

Maintenance Cost	The NetSuite ERP maintenance cost is included in the price of your subscription. If you purchase a license directly with NetSuite, you will also get NetSuite Support. There are silver, gold and platinum packages that are priced based on your annual contract value. This tool includes FAQs, tips and online user guides.
Installation/Implementation Cost	Installation and/or implementation is an additional cost with NetSuite ERP. NetSuite requires that you use a third-party for implementation support. Therefore, price varies depending on which consulting firm you decide to go with.
Customization Cost	Customization is an extra cost when purchasing NetSuite ERP. This is associated with the introduction of tools or programs that go above and beyond the “out of the box” software capabilities.
Data Migration Cost/Change Management/Upfront Switching Cost	This is another cost that goes above and beyond that of the basic software package. The price of this is dependent on factors such as complexity and the amount of data that you need to move over to the new system.
Recurring/Renewal Costs	Your recurring costs are dependent on the elements listed above, such as the number of users needed for your software solution, implementation, support and training services.

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Inform ERP

Start Price

^$10,000

One-Time

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Why We Picked Inform ERP

Inform ERP receives praise for its robust functionality and adaptability, particularly in managing complex distribution operations. Users appreciate its ability to handle diverse tasks, from inventory and order management to financials and reporting. Its strength lies in providing a comprehensive solution that streamlines processes and enhances efficiency. However, some users note that the initial setup and learning curve can be challenging due to the system's extensive features. Inform ERP distinguishes itself by offering industry-specific modules and customization options, allowing businesses to tailor the software to their unique requirements. This flexibility is crucial for companies with specialized workflows or niche markets.

While Inform ERP excels in functionality, some users mention that the user interface could be more intuitive and modern. Despite this, the software's strengths in customization, scalability, and industry-specific features make it a valuable tool for mid-sized to large distributors and manufacturers with complex operational needs. Its ability to adapt to evolving business requirements ensures long-term value and supports growth.

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Pros & Cons

Comprehensive Functionality: Inform ERP provides a wide range of features that cater to various aspects of distribution businesses, including inventory management, order processing, financials, and customer relationship management. This comprehensive functionality eliminates the need for multiple software solutions, streamlining operations and reducing complexity.
Industry-Specific Focus: Inform ERP is specifically designed for distributors, with features and functionalities tailored to their unique needs. This industry-specific focus ensures that the software aligns with the workflows and processes of distribution businesses, providing a more efficient and effective solution.
Scalability and Flexibility: Inform ERP is a scalable solution that can grow with the needs of a business. It offers flexible deployment options, including on-premise, cloud-based, and hybrid models, allowing businesses to choose the best fit for their infrastructure and budget.
User-Friendly Interface: Inform ERP features a user-friendly interface that is easy to navigate and learn. This intuitive design reduces training time and allows users to quickly become proficient with the software, improving productivity and user adoption.
Strong Reporting and Analytics: Inform ERP provides robust reporting and analytics capabilities, enabling businesses to gain insights into their operations and make data-driven decisions. Users can generate custom reports, track key performance indicators (KPIs), and analyze trends to identify areas for improvement.

Customization Challenges: Making modifications to Inform ERP to fit specific business needs can be complex and time-consuming, often requiring specialized developer skills. This can lead to frustration for businesses with unique workflows or industry-specific requirements.
Reporting Limitations: Generating reports and extracting data from Inform ERP can be cumbersome, with limited built-in reporting tools and a steep learning curve for creating custom reports. This can hinder data analysis and decision-making processes.
User Interface: The user interface of Inform ERP can feel outdated and clunky, leading to a less-than-optimal user experience. Navigating through the system and finding specific functions can be challenging, especially for new users.
Integration Complexities: Integrating Inform ERP with other business systems, such as CRM or e-commerce platforms, can be a complex undertaking. This can create data silos and hinder overall business efficiency.

Key Features

Financial Management: Inform ERP contains accounts payable, accounts receivable and bank reconciliation functionality. It gives users access to financial reports and allows them to perform tasks such as posting transactions to the general ledger as they occur. The program also contains the ability to archive documents such as invoices, financial reports and statements automatically.
Inventory Management: This feature enables users to visualize inventory information such as purchase orders, availability, returned goods and open orders. It also allows for adjustment to sporadic demand and can balance warehouse overstocks. The advanced demand planning and forecasting tool contains a real-time replenishment calculation that facilitates adjustment to actual demand.
Order Fulfillment: Inform ERP lets users make quotes into orders with the click of a button. Defective parts can be tracked through the system along with vendor reimbursement claims. The customer checkout process is streamlined through PCI-compliant card processing.
Embedded CRM: This program enables users to gather relevant customer information such as purchase history, order status and personal notes to assist in the personalization and improvement of the customer experience. It can also create order entries and price inquiries with one click. Individual and group calendars are included in the program so that staff can look at operations and sales opportunities in real-time.
Analytics and Reporting: Inform ERP’s reporting dashboards are customizable and can be segmented by user level. The Inventory Pivot Table Cube Editor allows users to manage stock transfers. The program also leverages real-time data and includes drill-down menus so that users can find relevant information.
Warehouse Logistics: With this tool, users can assign transportation to orders. Delivery routes can also be created while keeping factors such as weight, volume and necessary stops in mind. Additionally, users can create and print manifests and shipping documents through this feature.

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Prophet 21

Start Price

^$200

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Why We Picked Prophet 21

User reviews of Epicor Prophet 21 paint a mixed picture, highlighting both its strengths and weaknesses. Many users praise its robust features and functionality, particularly for sales, purchasing, and inventory control. One user describes it as "really easy to navigate and one of the better ERP systems out there." Others appreciate its deep functionalities and flexibility, noting how it can be tailored to specific business needs. One user commented, "The strong and multiple functionalities from P21 allowed us to address all aspects in a 'deep enough' manner." However, some users also raise concerns about Prophet 21's complexity and learning curve. One user found it "impossible to work with and antiquated," while another said it takes "a minute to understand" and requires patience. This complexity can be a significant drawback for smaller businesses or those with limited IT resources. Some users also criticize its scalability, suggesting it might not be suitable for rapidly growing businesses or those with complex distribution networks. Additionally, the limited number of pre-built third-party integrations compared to other ERP solutions can hinder integration with existing business applications. This lack of seamless integration can lead to manual data entry and inefficient workflows. Despite these weaknesses, many users believe Prophet 21's strengths outweigh its weaknesses, especially for mid-sized distribution companies. They particularly value its ease of use compared to competitors like Infor M3, which one user described as "too big for the business." Furthermore, users appreciate the exceptional partnership and responsive customer service offered by Epicor, which helps overcome initial challenges with implementation and customization. Overall, user reviews suggest that Prophet 21 is a powerful and flexible ERP solution, particularly for mid-sized distributors. However, its complexity and limited scalability may pose challenges for smaller businesses or those with rapid growth plans. Considering the trade-offs and carefully evaluating your specific needs is crucial before making a decision.

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Pros & Cons

Comprehensive Customization: The solution offers extensive customization, according to 84% of users. It’s versatile and can customize many fields and screens.
Usability: According to 89% of users who reviewed this pro, the solution is easy to use. Navigating the system through the function menus is intuitive.
Integration: About 100% of users who mentioned this pro said it provides advanced integration capabilities. Integration with credit card processing and sales tax software enables the business to conduct financial analysis in a hassle-free manner.

Limited Scalability: While Prophet 21 offers robust features, its scalability may not be sufficient for rapidly growing businesses or those with complex distribution networks.
Steep Learning Curve: The user interface and features of Prophet 21 can be complex and require significant training for users to become proficient.
Customization Challenges: While Prophet 21 offers some customization options, it may not be flexible enough for businesses with unique needs or workflows.
Limited Third-Party Integrations: Compared to other ERP solutions, Prophet 21 may have a smaller selection of pre-built integrations with popular third-party applications.
High Implementation Costs: The cost of implementing Prophet 21, including software licenses, hardware upgrades, and consulting services, can be significant for small and medium-sized businesses.

Key Features

Customer Relationship Management: It contains multiple tools designed to manage and improve customer relationships. A mobile sales system, contact management, marketing management and lead and opportunity management are all usable for daily CRM tasks.
Finance and Accounting: The system comes equipped with several financial and accounting tools, including a general ledger, accounts payable and receivable, Avalara Tax Connect and XL Connect and vendor rebates. Avalara Tax Connect manages sales tax compliance, and XL Connect allows users to generate reports in Microsoft Excel.
Business Analytics: The Business Analytics feature comes with an executive dashboard, accounts receivable dashboard and a sales rep dashboard. It also has a customer buying trend analysis function that predicts future customer issues.
Supply Chain Management: Manage the entire supply chain with a full range of SCM capabilities. Purchase management, sourcing and procurement, inventory management, advanced material management and warehouse management features are included.
Enterprise Content Management: Manage content throughout its entire lifecycle. Document imaging converts paper documents into digital files.
Contact Management: The CRM module supplies users with next-generation customer contact management. It tracks customers’ buying patterns, prospect and client information while displaying key information on one screen for easy access.
Service and Maintenance: The service and maintenance module comes with tools to deliver an excellent customer experience. Service order management, service dispatch, preventative maintenance and warranty capabilities streamline service and maintenance processes are all available with this system.
eCommerce Website Management: Manage multiple branded websites with the Epicor Commerce Connect feature.
Epicor Virtual Agent: The EVA app allows users to interact with the solution via voice or text commands.

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IFS

Start Price

^$8,000

Monthly

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Why We Picked IFS

User reviews for IFS paint a picture of a powerful and flexible ERP system, but one that demands investment and expertise. Fans praise its intuitive interface and industry-specific depth, especially in sectors like aerospace and manufacturing. "The power of IFS is amazing and overwhelming," one user gushes, noting its ability to handle 95% of their business processes. The modular architecture allows for significant customization, a major draw for many. "It can be tailored to fit almost any business environment," says another reviewer, contrasting it with the "rigid" feel of competing products like SAP.

However, IFS isn't for everyone. The initial investment and customization needs can be daunting, particularly for smaller companies. "The cost can be high," admits a user, comparing it to the "more affordable" options like Microsoft Dynamics 365. Additionally, the complexity can lead to a steep learning curve. "It's not as user-friendly as NetSuite," says another reviewer, highlighting the need for extensive training. Integration challenges and potential performance bottlenecks are also mentioned as drawbacks.

Ultimately, IFS seems best suited for companies with specific industry needs and the resources to invest in its extensive capabilities. "If you're looking for a deep dive into your industry, IFS is amazing," one user concludes. "But if you need something quick and easy, there are other options."

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Pros & Cons

Intuitive interface: Users consistently praise IFS for its user-friendly design and easy-to-navigate interface, which reduces training time and improves adoption rates.
Flexibility and customization: The system's modular architecture allows for a high degree of customization, enabling businesses to tailor it to their unique processes and requirements without extensive coding.
Strong industry focus: IFS is particularly well-suited for industries such as aerospace, manufacturing, and energy, offering deep functionality and expertise in these areas.
Mobile accessibility: Users can access the system from any device, including smartphones and tablets, enabling them to stay connected and productive while on the go.
Robust project management: IFS provides comprehensive project management capabilities, from planning and scheduling to resource allocation and cost tracking, helping businesses deliver projects on time and within budget.

High upfront investment: IFS can require a significant initial investment for implementation and customization, potentially exceeding budgets for smaller businesses.
Steep learning curve: The system's complexity can lead to a steeper learning curve for users, requiring extensive training and support to achieve full proficiency.
Limited out-of-the-box functionality: While configurable, IFS may not offer pre-built features for specific industry needs, necessitating additional development or workarounds.
Integration complexities: Integrating IFS with existing systems can be challenging, requiring specialized expertise and potentially leading to data silos.
Performance bottlenecks: Large or complex implementations may experience performance issues, requiring careful optimization and infrastructure considerations.

Key Features

IFS Financials: IFS includes basic accounting tools such as general ledger, accounts receivable, accounts payable and fixed assets. It also contains business planning functionality that uses customer-defined planning models to enable demand-driven planning. The eInvoice tool automates supplier invoicing and enables electronic invoicing. Consolidation can also be conducted across multiple companies and with multiple reporting currencies.
IFS Human Capital Management: This system allows employees to manage their own data as well as perform tasks such as applying for leave and updating time and expense reports. HR personnel can also manage payroll procedures, maintain health and safety information in accordance with government regulations and develop internal training programs through the tool. Recruitment can be done through the program’s connectivity with third-party applicant tracking systems (ATS).
IFS Engineering: This feature includes the ability for continuously updated data related to factors such as design elements, products and facilities to be accessed throughout an organization. Change management capabilities allow users to view, approve and check changes before going ahead with change orders. The commissioning tool also ensures that facility components are designed, tested, etc. in accordance with operational requirements through the use of punch lists and mechanical completion packages.
IFS Projects: IFS includes project management, risk management, project reporting and project budgeting features. Specific functionality consists of the ability to process project cost transactions, create projects using WBS, develop project schedules and develop forecasts using multiple versions of project estimates, reviews, budgets, etc. Estimate to Complete (ETC) and Estimate at Complete (EAC) principles are supported and spreading rules are available.
IFS Manufacturing: This tool can calculate capacity requirements, conduct Master Scheduling for finished goods, manage the production to order process and enable employees to report production information quickly. Project-based, discrete, repetitive and batch process manufacturing are also supported through the system. Visualization of the production plan is included and enables users to identify bottlenecks and material shortages.
IFS Supply Chain: IFS offers demand forecasting, supply chain planning, inventory replenishment, sales order management, procurement, rental management, warehouse management and shipment management features. The inventory function is connected to the demand forecasting tool and includes different planning strategies such as economic order quantity and service level-driven safety stocks. Item traceability is also supported through barcode functionality, which provides real-time stock information.
IFS Sales & Service: This feature controls the customer lifecycle from the time a lead comes in to the time that a product reaches its final destination. It assists with transportation by allowing users to visualize driving routes. It also supports service quote and contract management. Sales efforts can be streamlined through the sales configurator, which includes a product advisor that uses a series of questions to define requirements and recommend products.
IFS Maintenance: IFS enables users to evaluate potential improvements in equipment performance, communicate with subcontractors through a collaboration portal, develop leaner MRO operations and manage preventive maintenance schedules. It also makes regulatory compliance for vehicle fleets easier and manages tasks such as fault reporting, preparation, execution and final reporting for maintenance-related matters.
IFS Business Enablers: This solution includes role-based portals and personalized access to ensure that employees, customers and suppliers view the most relevant information and that no one has access to privileged information that they should not be able to review. The solution contains real-time data and allows for the connection of internal and external programs through web services. Add-ins and add-ons can be implemented to customize the solution through RESTful oData APIs from IFS.

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Pricing

License/Subscription Cost	On-premise: Based on perpetual license-based model: license fee includes an upfront fee to own the software plus IP for a fixed term and implementation/installation, maintenance, system upkeep, customization and third-party integration 10% to 15% is the typical rate of perpetual or renewal licensing for ERP systems Cloud-based/SaaS: Based on recurring subscription-based model: per user, per month For both types of deployment, costs vary based on the number of named user licenses the organization requires, the level of access users require, the number of applications, the size and type of organization and the level of customization required
Maintenance Cost	On-premise: Cost is over and above the license fee Requires ongoing maintenance plus ongoing upgrade support Users have to enter into a maintenance agreement for annual support and maintenance, the cost of which is in the range of 10% to 20% of the original license fee Cloud-based/SaaS: Not included in the subscription cost Additional cost for ongoing maintenance and upgrades For both types of deployment: Cost varies depending on the number of users Upgrade fees are charged for new releases, which is essential for the ERP system to be fully functional Additional cost if new additions to hardware and software are made to ensure that upgrades run seamlessly Provides a wide range of support and maintenance services Users can opt for varying levels of full or basic maintenance Services are provided 24/7 from support centers located around the world The IFS Maintenance and Support plan includes free access to new versions and product enhancements Provides ongoing support for smooth adoption of the new ERP system and technology, plus global backup on demand
Installation/Implementation Cost	For both types of deployment, the cost is over and above the upfront/subscription cost Cost varies based on number of users, system architecture, implementation scope and complexity, company size, industry, additional applications, add-ons and third-party integrations Third-party integrations involve a consultation cost Includes human resources costs during the implementation phase, as users may need to spend additional time understanding the system and companies may need to add temporary workers to replace users working on the ERP project Cost varies depending on who’s providing the implementation service: vendor, in-house or outsourced/third-party Provides professional services for the implementation of its product through IFS Partners Network to medium and large enterprise customers
Customization Cost	For both types of deployment, cost varies depending on the applications and modules added, such as self-service, recruitment, employee development and certification, training management and expense management
Data Migration Cost/Change Management/Upfront Switching Cost	For both types of deployment, cost varies depending on which legacy system is used (older, proprietary system vs. disparate systems), amount of business and historical data to be migrated to the new ERP system and the intensity of data migration to the new system Additional licenses can be purchased separately for the Database Management System of ERP Cost of these licenses aren’t included in the implementation cost
Recurring/Renewal Costs	For both types of deployment, the standard license renewal fees are 10% to 15% of the software cost On-premise: Annual recurring fees are paid over and above the upfront cost for annual renewal, upgrades, ongoing support and maintenance, customization, third-party integration and training Cloud-based/SaaS: Renewal cost is included in the subscription and is based on the number of users, add-on user licenses, ongoing support and maintenance, customization, third-party integration and training

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JD Edwards EnterpriseOne

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^$1,000

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Why We Picked JD Edwards EnterpriseOne

User reviews of JD Edwards EnterpriseOne offer a mixed bag of perspectives, highlighting both its strengths and weaknesses. While praised for its scalability, flexibility, and ability to improve efficiency and visibility, it is also criticized for its high implementation costs, complex interface, and limited mobile functionality. One user described JD Edwards EnterpriseOne as a "powerful platform that can be tailored to meet the specific needs of any business," appreciating its ability to "streamline workflows and automate tasks, resulting in significant productivity gains." However, another user commented that "the initial setup costs can be quite high," and that "the learning curve can be steep for new users." Comparisons to other ERP solutions are inevitable. One user noted that "while JD Edwards EnterpriseOne may not be as feature-rich as some of its competitors, like SAP or Oracle, it offers a more user-friendly interface and is much easier to customize." Another user pointed out that "JD Edwards EnterpriseOne has a strong track record of success in specific industries, such as manufacturing and distribution," which is a differentiating factor for those businesses. Ultimately, the user experience with JD Edwards EnterpriseOne seems to depend on individual needs and priorities. Those who value adaptability, efficiency, and industry-specific solutions may find it a valuable investment, while those on a tight budget or with limited technical resources may find it less appealing.

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Pros & Cons

Scalability and Flexibility: Adapts to changing business needs and scales to accommodate growth.
Improved Efficiency and Productivity: Streamlines workflows and automates tasks for increased efficiency and employee productivity.
Enhanced Visibility and Control: Provides real-time insights and comprehensive reporting for better decision-making.
Reduced Costs: Optimizes resource utilization and reduces operational expenses.
Improved Collaboration: Facilitates seamless information sharing and teamwork through integrated communication tools.

High Implementation Costs: Initial setup requires significant investment in software licenses, hardware, consulting, and training.
Complex Interface: Navigating the system can be challenging and require extensive training, causing frustration for new users.
Limited Customization Options: While customizable, it may not fully meet the specific needs of certain businesses, potentially requiring additional development.
Integration Challenges: Integrating JD Edwards EnterpriseOne with other systems can be complex and time-consuming.
Limited Mobile Functionality: Mobile app functionality may be limited compared to other ERP solutions, hindering mobile workforce productivity.

Key Features

Asset Lifecycle Management
- Condition-Based Maintenance: Detect machinery errors ahead of time and conduct maintenance as necessary. Boosts asset utilization, prolongs equipment lifecycles and eliminates maintenance fees.
- Rental Management: Govern all rental stages, such as contract creation, receiving and servicing returned tools.
- Capital Asset Management: Utilize full financial and operational performance transparency to optimize asset ROIs. Increases asset performance and diminishes maintenance expenses.
- Equipment Cost Analysis: Assess and compare timely machinery costs to manage maintenance and operating expenses.
- Resource Assignments: Utilize an integrated workbench to allocate maintenance duties, superintend workflows and rate how the assigned crew performs to schedule.
Financial Management
- Accounts Receivable: Facilitate and expedite the receipt applying process to gain real-time accounts receivable data.
- Accounts Payable: Employ integrations and flexible techniques to streamline accounts payable practices.
- Expense Management: Input time and expenses in a centralized hub, reducing short-term diverse spreadsheets and platforms.
- General Ledger: Merge entire business financial data for effective consolidation and reporting needs.
- Advanced Cost Accounting: Assess profitability via a fusion of orthodox managerial bookkeeping and activity-based calculations. This combination offers critical financial information that standard accounting protocols can't perform.
Human Capital Management
- Payroll: Execute straightforward payroll ciphering and decrease processing time with automatic payroll requirements like wage attachment laws.
- Time and Labor: Utilize real-time employee time chronicling to generate daily billings and project expenses.
- Human Resources Management: Enhance HR operation accuracy from workforce planning and employee development to benefits administration.
- Self-Service Human Resources: Perform productive routine employee management and assist workers in improving their performance and skills.
Project Management
- Advanced Contract Billing: Initiate cash flow improvements by enhancing and supervising billing workflows. Administer commercial and government contracts to meet several contract conditions.
- In-Memory Project Portfolio Advisor: Obtain real-time revenue and billing project information transparency to carry across whole project lifecycles.
- Contract and Service Billing: Create accurate invoices while aligning with business goals for more resilience to comply with multiple billing contracts and services.
- Advanced Job Forecasting: Craft algorithms, calculation procedures and estimates to cipher forecasted final amounts for particular jobs with precision.
- Project Costing: Receive a real-time snapshot of project fees and billing with a filtered view that exhibits original budget totals, current expenses, final cost projects and more.

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Aptean ERP

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^$250

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Why We Picked Aptean ERP

Aptean ERP has garnered a range of user feedback, highlighting both its strengths and areas for improvement. Users frequently commend its user-friendly interface, making it accessible even for those without prior ERP experience. The software's flexibility to adapt to various business needs through customization is also a significant advantage. However, some users have expressed concerns regarding its cost, which can be a barrier for smaller businesses. Additionally, the complexity of certain features and occasional challenges with customer support have been noted.

When compared to similar products like SAP and Oracle NetSuite, Aptean ERP stands out for its ease of use and affordability, particularly for mid-sized businesses. While it may not offer the same level of advanced functionality as its larger competitors, it provides a comprehensive solution that caters to the core needs of many organizations. Its industry-specific modules, such as those for manufacturing and distribution, further enhance its value proposition.

Aptean ERP is best suited for mid-sized businesses seeking a balance between functionality, affordability, and ease of use. Its industry-specific solutions and customization options make it a versatile choice for companies with unique requirements. However, businesses with complex needs or those requiring extensive customer support may want to consider alternative options.

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Pros & Cons

Industry-Specific Functionality: Aptean caters to specific industries like manufacturing, distribution, and food and beverage with tailored features and modules that address unique challenges and compliance requirements.
Scalability and Flexibility: Aptean is designed to grow alongside businesses, accommodating increasing data volumes and user numbers without compromising performance. Its modular structure allows companies to add or remove features as needed.
Cloud-Based or On-Premise Deployment: Aptean offers both cloud-based and on-premise deployment options, providing flexibility for businesses with varying IT infrastructures and preferences.
User-Friendly Interface: Aptean prioritizes user experience with an intuitive interface that simplifies navigation and reduces the learning curve for new users. The system's dashboards and reporting tools provide easy access to critical business data.
Comprehensive Functionality: Aptean encompasses a wide range of ERP functionalities, including financials, supply chain management, inventory control, customer relationship management (CRM), and human resources, providing a centralized platform for managing core business processes.

Customization Challenges: Modifying the system to fit specific business needs can be difficult and time-consuming, often requiring specialized developer knowledge.
Reporting Limitations: Generating reports with desired levels of detail can be cumbersome, sometimes necessitating manual data exports and manipulation in external tools like Excel.
Usability Concerns: The user interface can feel outdated and unintuitive, leading to a steeper learning curve for new users and occasional frustration during daily tasks.
Integration Complexities: Connecting Aptean ERP with other essential business systems or third-party applications can pose technical challenges and may require additional development effort or middleware solutions.

Key Features

Intelligent Inventory Management: Get a clear picture of stock in real-time visibility across all sales channels and operations. Align the demand and supply ratio and make sure the orders are fulfilled efficiently.
Role-Based Dashboards: Use role-based management dashboards equipped with drill-down capability to monitor and analyze business processes effectively. Leverage pre-built charts and graphs to create intuitive dashboards.
Production Management: Use production scheduling tools to determine what to produce, when to produce and what resources to use to facilitate optimal production.
Robust CRM: Store comprehensive customer information in a central database and integrate it with the solution, giving employees access in different departments. It enables them to identify sales opportunities, foster customer relationships and improve customer service.
Real-Time Reporting: Enable precise tracking of customer orders and shipping information to provide accurate status updates with real-time reporting tools.

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Acumatica Distribution

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^$2,500

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Why We Picked Acumatica Distribution

Acumatica Distribution has garnered positive feedback from users for its user-friendly interface and comprehensive features, making it a valuable tool for businesses of all sizes. Users appreciate the software's ability to streamline distribution operations, enhancing efficiency and productivity. The exceptional customer support provided by Acumatica further contributes to the positive user experience.

Compared to similar products, Acumatica Distribution stands out due to its cloud-based nature, offering flexibility and accessibility from any location. The software's scalability allows it to adapt to the evolving needs of businesses as they grow. Additionally, Acumatica Distribution's seamless integration with other business systems, such as accounting and CRM platforms, eliminates data silos and enhances overall operational efficiency. While some users have mentioned a slight learning curve associated with the software's extensive features, the available resources and customer support effectively address this challenge.

Acumatica Distribution is an ideal solution for businesses seeking a cloud-based distribution management software that prioritizes ease of use, comprehensive functionality, and exceptional customer support. Its scalability and integration capabilities make it suitable for businesses of all sizes, from small startups to large enterprises. Whether you need to manage inventory, streamline order processing, or gain real-time visibility into your distribution operations, Acumatica Distribution provides the tools and support necessary to optimize your supply chain and achieve your business goals.

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Pros & Cons

Inventory Management: Acumatica provides real-time inventory visibility across multiple locations, allowing businesses to optimize stock levels and reduce carrying costs. The platform also supports barcode scanning and mobile devices for efficient warehouse operations.
Order Management: Streamline the entire order-to-cash process, from order entry and fulfillment to invoicing and payment processing. Acumatica enables businesses to automate order workflows, track shipments, and manage customer returns effectively.
Purchasing: Acumatica simplifies procurement processes by automating purchase order creation, vendor management, and invoice processing. The system helps businesses negotiate better pricing, track purchase histories, and ensure timely deliveries.
Reporting and Analytics: Gain insights into key distribution metrics with Acumatica's comprehensive reporting and analytics tools. Businesses can track sales performance, inventory turnover, and other KPIs to make data-driven decisions.
Scalability and Flexibility: Acumatica is a cloud-based solution that can scale to meet the changing needs of growing businesses. The platform is also highly customizable, allowing companies to tailor the system to their specific requirements.

Customization Challenges: Acumatica can be difficult to customize for specific business processes, especially for users without extensive coding experience. Some users find the customization tools to be complex and time-consuming.
Reporting Limitations: Generating custom reports or modifying existing ones can be challenging. Users may need to rely on third-party reporting tools or developers to get the insights they need, which can add to the overall cost and complexity.
Mobile App Functionality: The mobile app's functionality may be limited compared to the desktop version, making it less suitable for users who require full access to features while on the go. This can hinder productivity and efficiency for mobile workforces.

Key Features

Inventory Management: Capture end-to-end supply chain traceability by tracking up and downstream inventory. Collect data from the point of purchase and ensure visibility for the entire product lifecycle. Ensure compliance and manage perishables with first-expired, first-out picking.

Replenishment: Refill stock levels with advanced algorithms and user-defined configurations. Define order quantities, seasonality, reorder points, safety stock and lead times while the system calculates accurate cycle volumes.

Warehouse Management: Automate picking, packing and shipping with customized workflows to minimize errors. Notify customers about shipment progress through every stage of order fulfillment.

Barcode Scanning: Automatically enter data with integrated barcode scanning to reduce manual errors. Increase items per scan and track lot and serial numbers. Boost digital scale and printer integration by automatically printing packing slips and print labels.

Financial Management: Create audit trails of transactions with records that can be deleted or modified. Correct errors by revising entries and letting the system track user IDs for transaction modifications.

Fixed Asset Management: Effectively manage multiple books and numerous asset types. Create reports and track depreciation rates. Add methods like an accelerated cost recovery system, flat rates, remaining value, straight line and declining balance. Invest in fixed assets without re-entering values.

eCommerce: Connect digital storefronts with the back-office using native connectors for popular eCommerce platforms. Process customer orders and integration from a centralized hub.
- Point of Sales: Provide an omnichannel experience with insights across inventory for various locations and sales channels. Ensure proper management of point-of-sale transactions with mobile-friendly applications connected to barcode scanners and cash registers.
Sales and Customer Management: Implement sales automation with integrated customer management. Modify opportunities into sales orders without re-entering pricing and discount information. Get a consolidated view of all consumers in a single database.
Order Management: Manage and monitor sales activity from a central ERP hub. Automate order processing and consolidate multiple tedious tasks into one. Record prices, inventory, discounts, quotes and shipments in real time from any device with the mobile app. Automatically build sales and purchase orders or add manual links.
Service Management: Set up, manage, track and modify appointments in real time. Ensure continuous communication with technicians and field professionals. Notify customers and users of any appointment, route or schedule changes.
Project Management and Accounting: Automate payroll transactions by creating billing rules and defining costs according to employees, project tasks, labor items and more. Ensure compliance with existing wage and union requirements.

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Pricing Guide

See the Price/User for the top Distribution ERP software… plus the most important considerations and questions to ask when shopping.

Buyer's Guide

The Best Distribution Software Is All About Streamlined Order Processing

By Peter Lalush, Technical Content Writer at SelectHub

Distribution Software BG Intro

Any business focused on selling and shipping products needs to keep an eye on their supply chain pipeline, ensuring it’s flowing smoothly with minimal delay. Without modern technology, this process can be costly and time-consuming. Luckily, there are plenty of distribution management software solutions out there to help businesses stay on top of their product creation and delivery.

With all the options on the market, it can be hard to determine which is the right choice. But there are a few key considerations you can use to help you get oriented and decide which software will be best for your business. In this article, we’ll outline some of the benefits and features distribution software can offer, as well as some of our analysts’ top picks.

Executive Summary

Distribution management software is built to help automate and streamline a business’s supply chain.
Set goals and benchmarks for before, during and after purchasing software to ensure you’re making the right decision.
Key features include reporting, supply chain management, warehouse management and asset tracking.
Be sure to ask internal and external questions to gather as much information as possible before committing to a software purchase.

What This Guide Covers:

What Is Distribution Software?
Deployment Methods
Primary Benefits
Implementation Goals
Basic Features & Functionality
Advanced Features & Functionality
Current and Upcoming Trends
Software Comparison Strategy
Cost and Pricing Considerations
Questions To Ask Yourself
Questions To Ask Vendors
Next Steps
Product Comparisons
Additional Resources

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What Is Distribution Software?

Distribution management software is a set of applications that help manufacturers and distributors manage core processes, including inventory control, order processing, accounting, customer relationship, supply chain, sales and finance management. This is a form of ERP software, which can include several other tools such as accounting, warehouse management systems and CRM technology.

Distribution management software is an all-in-one solution with a centralized database accessible across multiple departments, allowing users to perform multiple supply chain duties from a single place. It allows for real-time monitoring of the distribution process, from the acquisition of raw materials to the final delivery of completed products, and lets users intervene at every point to avoid slowdowns and supply chain issues.

Deployment Methods

As with most other business software, distribution management software can come in one of two forms of deployment: on-premise or cloud-based. Let’s take a closer look at each.

On-Premise

On-premise deployment means your distribution management software is housed on a computer or network physically located within your organization, allowing you to maintain complete control over the software, users and data. This deployment strategy protects critical data from malicious access by managing and maintaining it with an in-house IT department.

However, on-premise deployment is more expensive considering deployment and solution maintenance costs, and isn’t as easy for small businesses to implement because of its high upfront cost of entry.

Cloud-Based

Cloud-based software deployment means entrusting the software to its parent company. While your business has less direct control, housing the software online reduces the cost of entry and makes the vendor responsible for things like maintenance and updates. You can also use the software more easily, since any web-connected device can access the cloud. As processes become more complex, it’s easy to scale and accommodate additional modules.

In addition to scalability and cost-saving, resilience, accessibility and disaster recovery are other benefits of cloud-based solutions. On the other hand, if the cloud is down, it may temporarily affect business processes and prove detrimental in terms of cost. Some businesses may also have concerns about data security being put into the hands of another entity.

Primary Benefits

Let’s look at the benefits of distribution software.

Primary Benefits of Distribution Software

Reduced Costs

Distribution management software contains modules to organize the costs of operating warehouses and distribution centers into a framework that makes comparing them across locations easier. These include cost assignment, calculation, reporting, analysis and the aggregation of financial reporting statements, helping you minimize outgoing funds while maximizing company profits.

Faster Shipments

Between order and inventory tracking and warehouse management, distribution management software enables you to have a complete view of — and the ability to optimize — your supply chain, which further enables on-time shipments, order fill rates, line fill rates and pick accuracy. Other key metrics include inventory accuracy, space utilization, labor productivity, receiving, put-away, replenishment, picking and shipping.

Improved Scheduling

Adopting distribution management software can help a business meet their production and delivery goals by the dates and times promised by measuring and improving internal schedule compliance — an excellent way to make sure delivery dates and locations are correct and costs are low.

Better Visibility

Distribution management software provides a detailed view of each step in the supply chain, from initial material supply to final product delivery. This allows you to monitor your warehouses’ supply of resources and products and reorder when they’re running low, as well as identify and circumvent slowdowns in the process.

Higher Reputation

Distribution management software’s process automation features enable faster service, precise delivery and instant resolution of customer complaints during order fulfillment. This in turn improves customer satisfaction in your business, leading to better reach and more repeat business.

Expert recommendations and analysis on the top Distribution Software

Implementation Goals

Before purchasing distribution management software, it’s important to have a set of goals in mind for what you and your business hope to achieve by adding it to your workflow. These will be different for every business, but here are a few to consider for your own list - just remember that goals work best when they’re measurable, so make sure you have solid numbers for them.

Goal 1 Customer Retention	Through increased efficiency and transparency regarding deliveries, good use of distribution management software should lead more customers to return to your business. Set a goal for what number of repeat customers you’d like to have over a certain number of months — your software should help you meet or exceed it.
Goal 2 Faster Average Delivery Times	Automating certain parts of the supply chain with distribution management software should ideally cut down on the time it takes to deliver a product to customers. While you can’t always stop unforeseen issues or delays, averaging delivery times before and after incorporating a new software solution can help indicate how much your performance is improving.
Goal 3 Consistent Warehouse Supply Levels	Distribution management software’s automation capabilities can keep your warehouses from running too low on supplies by automatically reordering them when stock reaches a certain minimum threshold. This can help keep you from experiencing shortages or delays.
Goal 4 Improved Manufacturing Time	Automating parts of the supply chain process with distribution management software can also speed up the time it takes to turn raw materials into the goods you sell. It’s more advantageous to measure these parts separately rather than as a whole, as you can then pinpoint where the software is helping most of all and where it may need your attention.
Goal 5 Increased Incoming Revenue	As an overall goal, businesses want to maximize profits, and measuring the amount of money you’re earning before and after implementing distribution management software is an indirect but helpful indicator of how it’s affecting your business. As long as it’s increasing, you can be sure you’ve made the right software decision.

Expert recommendations and analysis on the top Distribution Software

Basic Features & Functionality

Let’s consider the basic features of distribution software:

Distributed Order Management	Distribution management software allows businesses to centralize their incoming orders and select distribution centers to carry them out based on location. These features also provide order-level details, status, quote-to-cash (QTC) and more to audit transactions.
Inventory Control and Management	Distribution management software lets businesses manage inventory levels across a warehouse or an entire distribution network. It allows you to calculate reorder points based on product order levels. Track order quantity, lead demand, stock cover and more.
Inventory and Order-level Financial Reporting	Evaluate inventory status across multiple warehouses while providing a single statement of all inventory levels and their financial value. If you’re using accounting software, you can integrate it with some distribution software to create a single, unified system for managing distribution operations.
Warehouse and Distribution Reporting & Analytics	Get a complete picture of your supply chain with distribution management software’s real-time reporting and analytics features, allowing you to send instant updates to customers and stakeholders and catch slowdowns before they become a problem.
Integrated Asset Tracking Systems	Track physical assets like machines, vehicles, computers and other equipment through an asset management module and RFID technology. You can also set up alerts and notifications to assign personnel for different work orders and schedule equipment maintenance.

Expert recommendations and analysis on the top Distribution Software

Advanced Features & Functionality

Below are some advanced offerings to watch.

Forecasting and Demand Planning	You can leverage the data received from distribution management software, such as cross-functional demand, to create forecasts and inform decisions about business functions. You can also launch product workflows, pricing, promotions, rebates and models that predict how efforts will impact inventory levels and velocity.
Electronic Data Interchange (EDI) Expertise	Distribution management software can integrate with EDI software to help you securely exchange transaction reports and documents like purchase orders, invoices, RFQs, loan applications and more. Using EDI helps minimize data loss and transmission errors as well.
Warehouse Management	Entrusting your warehousing workload to your distribution management software allows you to manage individual stock-keeping units (SKUs) and automatic ID technologies (bar codes, RFID and EPC codes), support multi-location analysis and warehouse location assignments by asset type, and analyze expected productivity rates.
Distribution Requirements Planning	Plot out a plan within your company requirements by using a table-driven structure that includes demand forecasts, current inventory levels, target safety stock, recommended replenishment quantities and replenishment lead times.
Supplier Collaboration and Scheduling	It’s simple to leverage distribution management software’s reporting and data transfer capabilities to ensure your suppliers are kept up to date on warehouse status, supply chain slowdowns and other issues. This software also assists businesses with scheduling resupplies.

Expert recommendations and analysis on the top Distribution Software

Current and Upcoming Trends

Distribution Software Trends

The Advent of Omnichannel Retailing

Customers are more likely to engage with brands that use multiple channels to reach out to them, a phenomenon known as “omnichannel” retailing. Software makes it much easier to leverage these channels and track their performance from a single location.

While eCommerce is booming due to its unbeatable convenience, there are still many advantages to selling in physical stores, through catalogs and even on television shopping networks, giving prospective customers more options to find and purchase your products and enabling you to reach multiple target audiences at once.

Expansion into Global Markets

Most businesses can find greater success by expanding into international markets, allowing them to sell to customers in several different regions. This expansion requires more focus on digitizing supply chain workflows, implementing cross-border trade and cross-channel marketing strategies, streamlining payment technologies and providing international shipping services.

Distribution management software can assist in this expansion by calculating international shipping costs and taxes, as well as monitoring warehouses in multiple regions to ensure shipping takes minimal time and effort.

Supply Chain Automation

Supply chain automation lets distributors effectively manage day-to-day operations and make informed decisions about staffing, shipping and warehousing, facilitating smarter inventory management. This is an industry standard inclusion for most distribution management software, giving companies of all sizes the ability to monitor their supply chain and minimize the tasks they need to perform.

Automating a business’s supply chain helps reduce the time taken for the whole process, and allows you to send customers real-time information on when the item they want will be in stock and when it’s expected to arrive at its destination. Some distribution management software also uses machine learning to help you anticipate demand.

Expert recommendations and analysis on the top Distribution Software

Software Comparison Strategy

Now that you understand how distribution management software can help your business, how do you figure out which options are best for your business? We recommend starting with our in-depth comparison report. Once you’ve made a list of software needs and wants, take a look at how some of the most popular software vendors stack up regarding product support and integration across various features.

It’s important to do research on individual software and vendors as part of this process too. Ask questions internally about requirements, as well as questions of vendors about their software and support to make sure you’re making the best decision for your business. You can use the questions we’ve written out below as a guide.

Cost and Pricing Considerations

While you’re making a software comparison, you’ll want to be sure you consider how much your company can reasonably spend. For example, if you choose to deploy an on-premise system, you’ll have to purchase a one-time or recurring license. However, if you opt for a cloud product, you’ll pay less up front, but you’ll have to consider the long-term costs of a recurring subscription.

Additional costs include:

Version upgrades
Add-ons
Data migration or customization services
Training
Implementation and maintenance

Expert recommendations and analysis on the top Distribution Software

Questions To Ask Yourself

Use these questions as a starting point for internal conversations:

How much are we willing to spend on new software?
What systems will we need to be sure our software integrates with?
What features and requirements are most important for our business goals?
How many employees will we need to onboard?
What implementation goals are we trying to achieve?

Distribution Software Key Questions To Ask

Questions To Ask Vendors

Use these questions as a starting point for conversations with vendors:

About the Software

What forms of deployment does the software support?
How does the software integrate with other business modules?
How long does it take to onboard employees with the software?
How scalable is the software over time?
What pricing tiers are available for the software?

About the Vendor

What software training do you provide for customers?
How do you handle support requests?
Do you have experience working with businesses in our industry?
What consulting services do you offer?
How knowledgeable is your support staff?

Expert recommendations and analysis on the top Distribution Software

Next Steps

Distribution management software can have a number of benefits for businesses that need to optimize their supply chain and make more efficient deliveries.

Ready for the next step? Take a look at our distribution software requirements checklist to see what options might work for your business, and check out some of the links below to see how different software options stack up against each other.

Product Comparisons

Additional Resources

About The Contributors

The following expert team members are responsible for creating, reviewing, and fact checking the accuracy of this content.

By Peter Lalush

Technical Content Writer

With an interest in technology and a master's in Technical Communication, Peter covers accounting, distribution and EDI software for SelectHub. In his role as a Technical Content Writer, he aims to make complicated topics easy for an everyday audience to understand. Outside of work, he enjoys making music, seeing horror movies, and taking a good nap.

Technical Research By Shweta Bhandari

Senior Analyst

In her role on SelectHub's research team, Shweta Bhandari works on categories like manufacturing, CMMS, construction ERP, takeoff software, supply chain management, field service, construction bidding software and construction estimation software.

Technical Review By Kankana Kalita

Principal Analyst

A seasoned business and research analyst, Kankana Kalita specializes in ERP, CMMS, manufacturing, construction, supply chain, HRMS and CRM. Prior to joining SelectHub, she earned a Bachelor's degree in Computer Science and Engineering, an MBA in Operations and Marketing, and worked in email marketing and logistics.

Edited By Dianna Dragonetti

Content Editor

As an editor, Dianna Dragonetti leads a team of five writers in writing about a variety of software, with an emphasis on how these tools empower businesses. Categories include accounting, learning management systems, content management systems, supply chain management, and electronic data interchange.

Edited By Hunter Lowe

Content Editor

Hunter Lowe is a Content Editor, Writer and Market Analyst at SelectHub. His team covers categories that range from ERP and business intelligence to transportation and supply chain management. Hunter is an avid reader and Dungeons and Dragons addict who studied English and Creative Writing through college. In his free time, you'll likely find him devising new dungeons for his players to explore, checking out the latest video games, writing his next horror story or running around with his daughter.