Shortlist UK’s Best Distribution ERP Software

Use our finder tool to shortlist the UK’s best Distribution ERP Software for your purchasing, inventory, logistics & sales needs.

What Is Distribution ERP Software?

Distribution ERP Software is designed to handle specific processes of distribution and wholesale operations. It consolidates all core distribution functions in one platform, driving faster delivery times and fewer stockouts while meeting growing customer expectations.

A distribution ERP delivers modules that improve the efficiency of each operational phase. Inventory management reduces stockouts and overstocks, lowering inventory costs by 10%. Supply chain visibility improves logistics costs by 15% and service levels by 65%.

For distributors, ERP eradicates the disconnect between departments that use different systems to manage processes. It combines accounting, HRM, and logistics with modules suited for indirect distribution activities. That includes warehouse management, order management, demand forecasting, logistics and shipping, and customer management.

Distribution ERP Software is used by:

• General Distributors
• Wholesale Distributors
• Retail & Commerce Distributors
• Manufacturers using a Direct-to-Consumer (D2C) model
• Manufacturers using a Direct-to-Store-Delivery (DSD) model

UK’s Best Distribution ERP Software Solutions

How Much Does Distribution ERP Software Cost to Deploy?

Distributors will require an estimated annual first-year budget of between £10,000 (for smaller firms) and £500,000 (for enterprise operations).

Costs consist of software subscription, implementation services, integrations, training and support, customisation, and ongoing maintenance.

There is no set price for everyone, as several factors determine the final price:

• Number of users (from 5 to 100+): From Operations director and warehouse manager to sales reps and pickers.
• Modules required: Some companies will require focused modules for logistics and shipping, whereas others may focus more on inventory management.
• Customisation and integration: Integrations for POS, CRM, Accounting, and HR systems can cost 20% of your implementation budget.
• Implementation: Whether phased or parallel, each business requires unique implementation phases. Budget for data migration, system setup, module integration, and rollout.
• Training, support and maintenance: Whether moving from a legacy system or spreadsheets, training is essential – as is the upkeep of the system from the vendor.

Distribution ERP Software is a significant investment. Implementation and buy-in hinge on its potential return on investment (ROI). As 75% of ERP implementations fail, it’s important to get it right and understand:

• Will it increase sales?
• Will it mitigate supply chain risks?
• Will it reduce costs associated with poor inventory and warehouse management?
• Will it allow you to compete and meet customer expectations?
• Will it reduce lengthy lead times?

In general, it takes 2.5 years to see a meaningful ROI after implementing an ERP.

Mapping ERP Modules to the 10 Distribution Operational Phases

1. Procurement and planning

• Procurement management
• Demand planning
• Demand forecasting
• Materials Requirements Planning (MRP)
• Product Information Management (PIM)
• Inventory Management

2. Inbound logistics

• Warehouse management
• Inventory management
• Transport management

3. Inventory and warehouse management

• Inventory management
• Warehouse management system (WMS)
• Bin/Location management
• Asset tracking integration (barcode, RFID, QR code)
• Cycle counting

4. Order management

• Sales order management
• Order fulfilment
• CRM
• Matrix items
• Integration POS/Ecommerce

5. Picking, packing, and shipping

• Label printing and packaging integration
• Warehouse management system (WMS)
• Kitting and assembly
• Order fulfilment

6. Outbound logistics

• Transport management system (TMS)
• Shipping and freight management
• Route optimisation/Fleet management integration
• Third-party logistics integrations
• CRM integration

7. Sales

• Customer management
• Sales order management
• Sales forecasting
• Demand forecasting
• Quoting and estimating

8. Billing and accounting

• Accounts Receivable (AR)
• Accounts Payable (AP)
• General Ledger (GL)
• Invoicing/e-Invoicing
• Tax Calculation & VAT Compliance
• Payment Gateway Integration

9. Returns

• Return Merchandise Authorization (RMA)
• Returns Processing Workflow
• Inventory Management (handle restocks or disposals)
• Credit Memo / Refund Processing

10. Reporting and analytics

• Business Intelligence (BI) / Analytics
• Dashboards & KPI Tracking
• Custom Report Builder
• Audit Trails & Compliance Reporting

How Distributors and Wholesalers Benefit From ERP Implementation

As well as strengthening supply chain processes and embracing technology, there are three driving factors leading distributors to embrace Distribution ERP Software:

1. Increase consumer satisfaction and brand/manufacturer relationships
2. Provide a seamless and efficient process from manufacturer to consumer (reducing the risk of losing manufacturers to direct-to-customer models)
3. To strengthen and increase profit margins

92% of wholesalers and distributors use ERP Software. A Panorama study showed distribution and/or wholesale in the top three industries to implement an ERP – behind Manufacturing and Healthcare.

To achieve a strong supply chain and stay competitive, distribution ERP systems enable distributors to focus on key areas such as:

• Inventory control: Including accurate and real-time visibility.
• Warehouse management: Ensuring deliveries are on time and orders are accurate.
• Cost-saving strategies: Demand forecasting and smart inventory systems enable improved planning to reduce over-stocking, under-stocking, and surplus wastage.

Specialised ERP for distribution ensures vital distribution management tasks are aligned. That includes picking and packaging, inventory management, sales and accounting, warehouse management, transportation, and logistics.

By unifying these activities, distributors can focus on delivering the right product and quantity to the buyer at the right time in the most sustainable and efficient way – ensuring customer satisfaction and protecting profit margins.

3 Case Studies of Real-World Distribution ERP Success

1. Modus Furniture International Gains 15% Inventory Accuracy

The Problem

• Disconnected systems between operations and accounting
• Information from off-site warehouses not connecting with operations
• Lack of real-time inventory visibility

The Solution

• Implemented an out-of-the-box Distribution ERP Software
• The solution was cost-effective and easy-to-implement
• It didn’t require customisation or additional IT resources

The Result

• Took seven months to implement across all operations
• Increased inventory accuracy in the first year by 15%
• Cut outstanding accounts receivable from 25% to zero

2. Brydens Increase Profit Margins Across Three Warehouses

The Problem

• Tracking order fulfilment data across three warehouse facilities
• Could not turn raw data into actionable information for better decision-making
• Too much time spent adjusting unit of measurements coming in and then going on

The Solution

• Implemented a distribution ERP system that focused on advanced planning
• Integrated all three warehouse facility operations and data
• Addressed picking, packing, and shipping weaknesses

The Result

• Increased staff efficiency by automating manual time-consuming workflows
• Increased sales by 20% over six years
• Increased profit margins by 23% over six years

3. Satellite Industries Prioritises Ease-of-Implementation

The Problem

• A homegrown system made up of spreadsheets and a legacy system
• The current system couldn’t handle recent growth and acquisitions

The Solution

• A non-complex solution that offered greater flexibility within budget
• Distribution ERP Software that focused on increasing supply chain visibility and multi-national requirements
• A key factor in choosing the solution was because of its ease of implementation

The Result

• Increased order visibility for staff and customers
• Handled six months of business in just 30 days
• Consolidated all customer information into one CRM module

Modern Challenges Solved By Distribution ERP Software

1. Manufacturers Operating a D2C Model

A supply chain consists of several moving parts that enable manufacturers to get their products to consumers via distributors, wholesalers, and retailers. It looks like this:

Manufacturers -> Distributors -> Wholesale Distributors -> Retail Distributors -> Consumers

By operating with a direct-to-consumer (D2C) model, manufacturers are changing the supply chain fundamentals. Now, with D2C models, the supply chain looks like this:

Manufacturers -> Distributors -> Wholesale Distributors -> Retail Distributors -> Consumers

In a Barclays survey of 500 UK manufacturers, cutting out the ‘middlemen’ is projected to increase revenue, grow customer bases, and increase the speed of taking products to market.

But, while D2C accounts for 16% of all UK manufacturing sales, it is problematic. Take Nike for example; CFO, Matt Friend, openly admitted that the company’s D2C strategy had added ‘complexity and inefficiency’ to operations. This resulted in the global brand pivoting on its direct-to-consumer model following a decline in digital sales.

2. The Amazon Effect

The ‘Amazon Effect’ is being felt throughout the supply chain. So much so that 77% of distribution companies are now prioritising personalised user experience.

Distributors are facing more and more pressure to deliver an experience that matches that of Amazon, Alibaba, Walmart, and eBay in areas such as:

• Price competitiveness
• Delivery standards (time, effectiveness, and environmental sustainability)
• Return management
• Product/stock availability and variety

3. Shrinking Profit Margins

Rising outgoing costs are impacting distributor profit margins, with some operations working with a profit margin of as little as 3%.

Without the means to track overheads, direct costs, stock control, and wastage, distributors have no clear visibility of their outgoings. Without this understanding, finance admins struggle to forecast spending and implement cost-saving strategies.

How Can Distribution ERP Software Combat These Challenges?

To compete with direct-to-consumer models, distributors need to make the connection from manufacturer to consumer as efficient and smooth as possible. To do so, they must embrace technology – something that most manufacturers lack.

Essentially, these real-world challenges stem from deeper process-based challenges such as:

• A lack of real-time visibility in operations and warehouse management
• Poor inventory management systems
• Supply chain management limitations

Distribution management solutions provide the tools to face these challenges head-on, with state-of-the-art integrated ecommerce platforms, end-to-end customer communication channels, and smart inventory and stock systems.

Distribution ERP Software FAQs

What Industries Are Best Suited for Distribution ERP Software?

The advantage of specialised ERP systems is that they have access to specific toolsets designed for unique tasks. As opposed to manipulating generalised ones to fit your needs.

Because of this, distribution ERP systems are designed for various industries responsible for durable and non-durable goods, including:

• Chemicals
• Automotive
• Machinery
• Agriculture
• Furniture
• Fashion and apparel
• Food and beverage
• Industrial

How Long Will It Take to Implement Distribution ERP Software?

For small distributors with one or two warehouses, expect an implementation time of 1-6 months. For mid-sized companies, implementation can take between 6 and 9 months. For multi-site and international organisations, implementation times can range from 9 to 18 months.

As with cost, implementation time for distribution ERP depends on factors like:

• Number of modules being deployed
• How many warehouses and sites you have
• Customisation required
• Number and complexity of external application integrations
• How much existing data is needed to cleanse and migrate
• Choice of implementation method
• Training and support required for users