Top Ten Problems Solved by SAP Business One in Wholesale
Problem #5: Disconnected Systems in Wholesale Distribution
This is the fifth in our series of blogs highlighting ten common problems addressed by SAP Business One. In our last blog, we examined problems resulting from inaccurate demand forecasting. In this blog, we highlight problems caused by disconnected systems in the wholesale sector.
The problem
The core challenges associated with disconnected systems are the same as in manufacturing (see our recent manufacturing blog on Disconnected Systems & Departments). But there are significant differences in the nature and impact of the problem.
Complexity of Operations
One of the most common and costly issues in wholesale relates to inventory. Disconnected systems, often coupled with manual processes, result in system lags. Different systems show different stock levels. Warehouse, sales, and purchasing teams have to rely on conflicting data.
Manual processes also lead to errors; for example, when orders are being manually rekeyed between systems. Wrong items are shipped, incorrect quantities are recorded, and orders are delayed or missed.
eCommerce Focus
In UK wholesale, eCommerce has a much bigger role to play than it does in manufacturing. Many wholesalers now get a large proportion of their sales orders via eCommerce. Even traditional wholesalers use customer portals, EDI, or online marketplaces.
ERP and eCommerce systems are tools that serve different purposes and you need both of them. If you want to develop your business through eCommerce, integration is essential.
How SAP Business One helps wholesale operations
SAP Business One helps businesses overcome disconnected systems by unifying processes, offering real-time visibility, and automating workflows across operations.
Streamline Operations
SAP Business One connects inventory, sales, purchasing, warehousing, and finance in a single system. This real-time flow of information helps drive automation to improve operational efficiency and financial management.
Some examples:
- MRP to optimise stock levels and efficiency in purchasing
- Warehouse management to optimise layouts and operator efficiency
- Sales quotation automation that can automatically apply customer-specific pricing, discounts, and promotions
- Sales order processing that can automatically generate delivery documents and invoices from sales orders
Seamless Integration with eCommerce
SAP Business One will automate the flow of information between your operations, website and marketplaces. Integration can also include your 3PL. The two-way flow of information includes real-time updates for sales orders, payments, fulfilment, product information, stock levels, price changes, and customers.
Real-time integration helps improve customer experience as actual stock availability can be viewed online. It lowers costs as there are fewer costly errors to deal with. It also builds trust in your brand. And trust leads to more repeat business and more positive customer reviews.
Improve Demand Forecasting
As highlighted in our previous blog, SAP Business One improves the accuracy of sales forecasts by basing them on actual past performance. It also automates the process of generating forecasts and incorporates them into MRP. The combination of MRP and more accurate sales forecasts ensures you always have the right stock level to meet customer demand.
Learn more
These are just some of the ways that SAP Business One could help your wholesale distribution business. To learn more, take a look at the other blogs in this series. Alternatively, download a copy of our SAP Business One Beginners Guide – Wholesale.
In the next blog in this series, we highlight problems caused by a lack of real-time visibility.
By Edward Bentley