The Benefits of ERP Integration for Wholesale Distributors

As the wholesale distribution industry continues to grow, it becomes increasingly important for distributors to streamline their operations and provide top-notch customer service. One way to achieve these goals is through the integration of their website with their ERP system. In this article, we will discuss the benefits of ERP integration for wholesale distributors, including increased efficiency, error reduction, real-time information sharing, and higher customer satisfaction.

We will also explore the negative aspects of trying to operate a website that requires dual data entry and does not automatically keep information in sync with a back office ERP.

Efficiency

One of the primary benefits of ERP integration for wholesale distributors is increased efficiency. When a website is integrated with an ERP system, orders and other customer data are automatically processed and updated in real-time. This eliminates the need for manual data entry and reduces the risk of errors. As a result, distributors can process orders more quickly and accurately, which leads to greater productivity and profitability.

• According to a study by Aberdeen Group, companies that use ERP systems have a 19% lower operational cost than those that don't.
• Another study by Forrester Research found that ERP systems can help reduce order cycle times by up to 50%.

Error Reduction

Another benefit of ERP integration for wholesale distributors is the reduction of errors. When data is entered manually into multiple systems, the risk of errors increases significantly. However, when a website is integrated with an ERP system, data is automatically updated across all systems, which reduces the risk of errors and ensures that all data is accurate and up-to-date.

• According to a study by The Data Warehousing Institute, data errors cost businesses an average of $1.5 million per year.
• Another study by Deloitte found that companies that implement ERP systems experience a 20-30% reduction in errors.

Real-Time Information Sharing

ERP integration also enables real-time information sharing, which is essential for wholesale distributors. With real-time information, distributors can provide accurate and up-to-date pricing and inventory availability to their customers, which leads to higher customer satisfaction and increased sales. Real-time information also allows distributors to quickly identify and respond to changes in demand, which is critical for staying competitive in today's fast-paced business environment.

• According to a study by Frost & Sullivan, 74% of B2B customers expect real-time inventory visibility when shopping online.
• Another study by Accenture found that 87% of B2B customers want real-time pricing and availability information when shopping online.

Simplification of Operations

ERP integration also simplifies operations for wholesale distributors. With an integrated website and ERP system, distributors can manage all aspects of their business from a single platform. This means that there is no need for manual data entry or duplication of efforts across multiple systems. In addition, the automation of processes, such as order processing and inventory management, helps to streamline operations and increase efficiency.

• According to a study by Panorama Consulting, ERP systems can reduce inventory carrying costs by up to 25%.
• Another study by Nucleus Research found that companies that use ERP systems experience a 20% reduction in administrative costs.

Higher Customer Satisfaction

Ultimately, ERP integration leads to higher customer satisfaction for wholesale distributors. By providing accurate and up-to-date information, distributors can build trust with their customers and increase loyalty. In addition, real-time information and streamlined processes help to ensure that orders are processed quickly and accurately, which leads to higher levels of customer satisfaction.

• According to a study by Harvard Business Review, companies that provide excellent customer service can see up to a 7.5% increase in revenue.
• Another study by Walker found that by the year 2020, customer experience will overtake price and product as the key brand differentiator.

Negative Aspects of Deintegrated Systems

While the benefits of ERP integration are clear, there are also negative aspects to deintegrated systems. When a website requires dual data entry and does not automatically keep information in sync with a back office ERP, there is a greater risk of errors and delays. In addition, managing multiple systems can be time-consuming and inefficient, which can lead to lost productivity and profitability.

• According to a study by Panorama Consulting, 65% of ERP implementations experience cost overruns due to poor project planning and management.
• Another study by Forrester Research found that companies that don't use ERP systems experience up to a 20% decrease in customer satisfaction.

Short Stories of Fictitious Distributors

To illustrate the benefits of ERP integration, let's look at two fictitious wholesale distributors and how they have benefited from integration:

Statistics on B2B Online Ordering Trends and Changing Demographics

To understand the importance of ERP integration in the wholesale distribution industry, it is important to look at some relevant statistics:

• According to a study by Forrester Research, B2B Ecommerce sales in the United States are projected to reach $1.8 trillion by 2023.
• Another study by Frost & Sullivan found that the B2B ecommerce market in North America is expected to grow at a compound annual growth rate of 12.1% from 2018 to 2025.
• According to a report by Digital Commerce 360, B2B buyers are increasingly demanding more online functions, such as real-time inventory and pricing information, product comparisons, and online purchasing.
• Furthermore, the demographics of the B2B and wholesale distribution space are changing. As younger generations enter the workforce, they are more likely to prefer online purchasing and expect a seamless digital experience.
• A study by Accenture found that 73% of B2B buyers prefer to buy online, and 88% expect their B2B buying experience to be as smooth and easy as their B2C experience.

These statistics demonstrate the importance of providing a seamless digital experience for B2B customers. By integrating their website with their ERP system, wholesale distributors can provide accurate and up-to-date information, streamline their operations, and increase customer satisfaction.

Conclusion

ERP integration is essential for wholesale distributors who want to stay competitive in today's fast-paced business environment. By providing real-time information, reducing errors, and streamlining operations, ERP integration can help distributors increase efficiency, productivity, and profitability. Furthermore, as the B2B ecommerce market continues to grow and demographics change, providing a seamless digital experience is more important than ever. By integrating their website with their ERP system, wholesale distributors can meet the changing needs of their customers and stay ahead of the competition.

Statistics sources: Forrester Research, Aberdeen Group, Deloitte, The Data Warehousing Institute, Frost & Sullivan, Accenture, Panorama Consulting, Nucleus Research, Harvard Business Review, Walker, and Digital Commerce 360.