• Tarana Rana

How Cloud ERP Benefits Your Small or Mid-Sized Distribution Business

Here are the key benefits of Cloud ERP software like Dynamics 365 Business Central for distribution management businesses.


If you manage or own a wholesale distribution company, you'll know first-hand about challenges in successfully managing your inventory, logistics, and supply chains. To be successful in a highly competitive landscape with changing customer demands and supply chain fluctuations, and more, you need to find ways to streamline operations, cut costs and shorten your cash cycle. You need to anticipate demand to avoid excess inventory, look for new opportunities, and provide an excellent customer experience.


If you are looking for a way to run your distribution business more efficiently, modern cloud enterprise resource planning (ERP) software is the answer. Here's are the benefits of cloud ERP for wholesale distribution management businesses.

How Cloud ERP Will Benefit Your Distribution Business:

As a distributor, you need to have the correct item available in the right quantities, at the right time, and the right price. If you are overstocked, your costs rise, while stock-outs ruin customer loyalty and satisfaction.


A cloud ERP system acts as a central source of truth and connects information from different business departments under one centralized platform. With cloud ERP, you have access to accurate, company-wide data that is easily accessible and updated in real-time. This gives you complete visibility of inventory status and movement. You can see each step in the process, from quote to cash, which results in numerous business benefits, such as:


Better inventory management and reduced costs – As you have a better understanding of your inventory and stock, you'll be able to operate more efficiently and reduce costs of managing inventory and logistics.


Improve customer service & interactions – Your customer service team can easily pull up a customer's order history in real-time and accurately let them know when their order was shipped or when the delivery date will be, to better manage individual cases. As responses will be more consistent and professional, leading to higher customer satisfaction.


Accurate forecasting for better planning – Certain modern cloud ERP systems like Dynamics 365 Business Central also come with advanced forecasting capabilities to predict customer demand and expected stock outs based on historical data and market conditions and trends.


Increase accessibility of data – Cloud ERP software can be accessed on any device, from anywhere, which means your business leaders and employees can easily get access to fast, accurate, and relevant information at any time, making it easier to respond to challenges as they arise.


Improve reporting and make better business decisions – A cloud ERP system can improve your reporting process in speed and accuracy. As cloud ERP systems often come with advanced analytics or BI capabilities that transform your data into actionable insights, you make better financial business decision-making which will benefit your business.


Modern cloud ERP systems also make it easier to gain a competitive advantage by making it easy to automate and optimize critical business processes, which can result in the following benefits:


Reduce your order times – By automating your sales order processing, you can limit your order fulfillment and shipping delays.


Increase productivity & reduce errors – When you automate reoccurring processes and tasks like orders, workflows, approvals, and invoicing, not only do you eliminate mistakes and delays caused by human errors, but you also free up your employees to focus on other tasks, improving productivity.


Optimize your warehouse management – You'll be able to simplify your receiving and shipping while reducing wasted, lost, or damaged stock by streamlining your processes.

Dynamics 365 Business Central for Your Distribution Business


Dynamics 365 Business Central is a leading cloud ERP solution by Microsoft that is ideal for small and mid-sized wholesale distribution companies. It offers tailored features companies need to get ahead of their competition, reduce costs, and fulfill their customers' expectations.


Here's an overview of key out-of-the-box functionality for distributors in Business Central:

  • Inventory management

  • End-to-end warehouse management

  • Order processing

  • EDI

  • Trade spend management

  • Profitability analysis

  • Financial reporting and BI

  • Shipping and receiving

  • Purchasing and procurement

  • Forecasting & more!

Learn more about Business Central capabilities here >>


To figure out if Dynamics 365 Business Central is the right fit for your distribution company, reach out to the team at Kwixand Solutions. We are a Silver Microsoft Dynamics 365 Business Central Partner who helps small and mid-sized businesses across Canada and the US through all stages of their ERP and cloud transformation. Our no-obligation, free Business Central assessment will give you a deeper understanding of how Dynamics 365 Business Central can fit within your organization, along with the process, costs, and timeline.