Many distributors, as they start their operations, go out and get a software package – usually accounting software, to help administer the business. As time goes on, there is a need for a more robust inventory management system, or kitting, as well as inventory control. Maybe the distribution company lands a large customer, but they require a process called EDI for their transactions. Now, instead of having the accounting software, over time this distribution company adds additional software for inventory, EDI, shipping, eCommerce, and the list could go on. While each piece of software does a good job on its own, it is better to have one integrated distribution software system that will integrate with other software or processes. Here are 5 reasons why.
1. Less time taken to get the job done
Working with software that doesn’t communicate causes double work. Data needs to be taken from one software and re-entered into another software. Having one system that doesn’t require re-entry of data saves lots of time and resources.
2. Less Mistakes
If data is being taken from one software and re-entered into another, there is a good chance that costly errors are being made. These mistakes lead to higher inventory costs, shipping charges, and possibly the risk of losing a customer.
3. Higher Productivity
If your employees are not spending time re-entering data, while working with multiple systems, there is more time available to do additional tasks.
4. A Lean Environment
By cutting out the increased time spent dealing with multiple systems, you may reduce the need to hire more personnel to handle company growth.
5. Cost of Having Multiple Software Systems
If you have to maintain more than one software system, it can be more expensive to maintain. Instead of involving one software company for support, you are now involving multiple companies; each one willing to support (and charge you for) their software. This often leads to higher fees than you would see from dealing with one software vendor.