How to Choose the Right Distribution Software for Your Business?

Are you wondering how to choose the right distribution software for your business? Choosing the right distribution software is essential to unlocking a range of benefits, like streamlined supply chain management, improved customer service, increased reach, better tracking, and much more. 

Given that distribution software is specifically designed for managing internal and external supply chain workflows, it becomes essential for businesses to have one to optimize operational spending and maximize profits. This software assists with many processes, from controlling inventory and supporting quoting processes to managing suppliers and managing warehouse management capabilities, like picking, shipping, and packing. 

However, how can you select distribution software that meets your needs and helps you achieve your business goals? This blog is intended to simplify the selection and decision-making process. 

Choosing the Right Distribution Software: Understanding its Types

Before we begin to discuss the key factors to consider while choosing the right distribution software, it is essential to understand that distribution software exists in many different kinds. Each one of its types is intended to handle one particular aspect of the distribution process. The primary divisions are as follows:

• Warehouse Management Systems (WMS)

These systems focus on simplifying warehousing processes. They can be used by a business that wants to optimize its warehousing methods and reduce mistakes made when shipping and handling goods.

• Order Management Systems (OMS)

This focuses on handling orders more efficiently and reliably.  It can be used by a retailer or online shop that aims to increase order accuracy and number and manage a high volume of orders.

• Warehouse Management Systems (WMS) 

WMS automates crucial processes in the warehouse, like monitoring stock levels and placing orders before the stock is completely utilized. This software tracks the goods from the moment they enter the warehouse until they leave. Some AI-based software provides suggestions for utilizing the space available in the warehouse in the best possible way. 

• Supply Chain Management (SCM) Systems

This focuses on directing the producers, suppliers, and vendors along the entire supply chain. Companies that aim to improve every process, from obtaining raw materials to shipping completed goods to customers, can use it.

• Customer Relationship Management 

As the name suggests, a customer relationship management system helps manage customers and provides a 360-degree view of all customers. It stores suppliers, customers, and orders data, from their first contact with the business to the sale made, and it also helps in resolving customer queries post-sales. 

• Transportation Management Systems (TMS)

This focuses on overseeing vehicle operations as well as planning for transportation. Companies that have to guarantee the economical and effective delivery of goods to clients.

Distribution software often contains all the capabilities under one roof. For instance, Acumatica is a cloud-based distribution software that assists in automating processes in different areas, like inventory tracking, order fulfillment, purchasing, and customer support. Another example of distribution software is Fishbowl, which effectively serves QuickBooks users. It supports features like inventory tracking and warehouse management and handles manufacturing processes easily. 

So, if you are running on a limited budget and want to optimize a specific department’s operation, you can invest in software dedicated to that. For a more comprehensive approach, an Introduction to Retail Operation Management Software can guide you in selecting tools that integrate various operations, enhancing overall efficiency and effectiveness.

Another Important Factor to Consider: Deployment Mode

Now the question is, how do you deploy these software solutions, and how do you decide on the right deployment model? The following important factors will assist you in choosing the approach that best suits your needs:

• Cloud-based vs. On-premise

Cloud-based stores your program online and allows you to access it from anywhere; you just need the internet. It’s typically easier to update, less expensive up front, and free of hardware management issues. 

On the other hand, on-premise means your software is installed in your system at your location. It is potentially more secure for sensitive data and gives you greater control. Still, it might be more difficult to maintain, needs more frequent upkeep, and has higher upfront costs.

• Small Business vs. Enterprise Solutions

As the name suggests, small business solutions are designed for small-scale firms. They are frequently less feature-rich yet more user-friendly and reasonably priced. On the other hand, enterprise solutions are for large firms. They are quite feature-rich and give the scalability and capacity that large enterprises need.

• Industry-Specific vs. General Distribution Software

Industry-Specific software is designed for particular sectors such as manufacturing or retailers. Its features appeal to the particular requirements of the sector, increasing its efficacy for those companies. 

Whereas the general distribution software can be used across various sectors. It is adaptable and may be modified to meet various company needs.

Does Your Business Need Distribution Software?

Are you finding it challenging to perfectly align with ever-increasing customer demands and optimize operations using outdated tools? In such situations, distribution tools aid as a strategic partner and can completely change the way your company handles its supply chain.

For example, suppose you are in charge of a mid-sized retail electronics company. Although everything has been going smoothly, as your business expands, you’re beginning to identify a few significant problems: Your workers use spreadsheets to track inventory manually, but they frequently make mistakes. Understanding What Retail Operations Are will help you recognize how these processes impact your overall business performance and identify opportunities to optimize them effectively.

Customers occasionally order products that look to be accessible online, but upon checking the warehouse, you find that they are out of stock. This results in negative feedback, order cancellations, and unhappy customers.

This situation can be handled with distribution software. Your inventory can be automatically updated in real-time. The technology ensures your website always shows correct information and subtracts an item from the available stock as soon as a customer places an order. There are no more annoying supply shortages, and your clients are aware of what is in stock. Distribution software also includes real-time data analysis and reporting. 

You may monitor client buying patterns and discover which products are selling quickly and which are lagging. This helps transform your business completely. You eliminate human error, speed up order fulfillment, and gain the transparency you need to make better decisions. As a result, your business expands more successfully, your clients are happy, and everything functions more seamlessly. Let’s move on to comprehend the different types of distribution software.

Factors to Consider When Choosing Distribution Software

One should consider the following factors before choosing a distribution software for their business.

• Customization and Scalability

Nowadays, there is no need for one-size-fits-all software, so you should first look for customization and scalability features in your desired distribution management software (DMS). The software should allow customization of existing features, addition of new features, tailored reporting, and the ability to scale up to accommodate your growing business requirements. 

• Integration with Other Systems 

The DMS should be seamlessly integrated with other business applications, like ERP and eCommerce platforms, so there is data flow between the systems and you can get appropriate business insights. Effective integration ensures reduced data entry redundancy and improved operational efficiency. 

1. Ease of Use

It is essential to check the software’s usability because your employees will interact with it daily. Hence, the software’s interface should be user-friendly and intuitive so that your employees can be trained to use it with minimal training. 

• Support and Help

When utilizing software, your employees will face issues. So, ensure there are significant resources and documentation available to provide help to resolve the issues, and the customer team should be available 24/7, in case, the resources do not provide optimal solution to resolve the issue. 

Considering these factors while choosing your distribution software will help you make the optimal decision for your business. 

Cost of Distribution Software

Knowing how much distribution software will cost is crucial while making this decision. Several reasons might cause a large range of price variations. 

• Price Model: Usually, the vendors support two pricing options: a one-time license, which has a higher upfront cost but no ongoing fees, or a subscription-based model, which requires regular payments. 
• Module and Functions: Standard packages are less expensive, but you’ll probably have to pay more for add-ons like complex analytics if you need those extra features. 
• User count: The more users utilizing the program, the more expensive it is. Think about how many people on your team will require login as some vendors charge by the number of users.

Based on all these factors, the vendors provide different plans, which you can choose according to your needs. Let’s look at some average pricing plans provided by the vendors: 

Also, some vendors might offer a customizable plan. In this plan, you can choose the features and capabilities you want in your platform and the number of users who will use it, and then the price will be decided. 

The Bottom Line,

Assessing the firm’s size, market demands, and long-term objectives is necessary before selecting the best distribution software. It’s crucial to think about how the software will expand with your company rather than just your immediate needs. By carefully considering aspects like cost, acceptance, flexibility, and ease of use, you may choose wisely and improve your operations both now and down the road.

FAQs (Frequently Asked Questions)

Q: What is the difference between distribution software and ERP?

Ans: ERP handles a broader range of company activities, such as finance, HR, and more, whereas distribution software focuses on handling logistics and supply chains.

Q: How do I know if my business needs distribution software?

Ans: Distribution software can help you run your business more efficiently, whether you manage supply chains, warehouses, or inventories.

Q: Can distribution software integrate with my existing systems?

Ans: Yes, the majority of distribution programs integrate with CRM, ERP, and various other company software.

Q: How long does it take to implement distribution software?

Ans: Depending on complexity, implementation times can range from a few weeks to several months.

Q: Is cloud-based distribution software better than on-premise solutions?

Ans: While on-premise software provides greater control over data and infrastructure, cloud-based software provides flexibility and reduced upfront expenses.

Soumyajit