FALL 2017

84
THE DISTRIBUTOR’S LINK
DISTRIBUTION ONE
4004 Church Road, Mount Laurel, NJ 08054
TEL 856-380-0629 FAX 856-222-0061 EMAIL info@distone.com WEB www.distone.com
UNCLOUDING CLOUD - ENHANCED ERP
Imagine facing this answer on Jeopardy!: ROI,
Productivity, Sales, Data, Inventory, and Growth.
What question comes to mind?
Obviously, each of these subjects represents
significant real-world areas of focus for every wholesaler
and distributor. Being able to properly manage them
is the primary indicator of a
company’s survival which is why
so many distributors correctly
turn to Enterprise Resource
Planning (ERP) solutions like
Cloud-enhanced ERP.
Within just a few short
years, Cloud ERP software
has quickly risen to become
a desired deployment option
for many distributors. In fact,
Cloud ERP deployments have
already captured 25% of total ERP market share and
are expected to grow at an annual rate of 8.3% over the
next five years (RnR Market Research report, 2017). To
understand the surge in Cloud ERP implementations,
it’s necessary to more closely explore the benefits
distributors receive by putting their heads in the cloud.
Return on Investment (ROI)
Compared to On-Premise deployment, Cloud ERP
provides the fastest path to implementation while
avoiding the need to fund physical on-site servers and
in-house IT support teams. How significant is that? A
2016 report by Nucleus Research found that Cloud ERP
customers experience 43% faster ROI and spend 50%
less on personnel and one-fifth as much on consulting.
With Cloud ERP, companies experience the additional
benefit of having the option of paying for a fixed monthly
management subscription instead of the large upfront
capital outlay required with On-Premise deployment.
These savings allow companies to allocate funds
toward other key company initiatives like acquisitional
expansion or growing the workforce.
Data Management
Data is a wholesale
distributor’s single most
important asset as every
business function depends
on quickly accessing relevant,
accurate data. Productivity,
Inventory, and Sales are all
tied directly to the successful
management of business data.
By utilizing accurate data, for
instance, distributors end up
reducing labor costs by eliminating time-consuming part
counts and simplifying the flow of products in and out
of the warehouse. With data accuracy comes the ability
to develop forecasting for guiding sales and purchasing
decisions.
When combined with seamless program
interconnectivity and companywide accessibility
to customer and sales data, Cloud-enhanced ERP
streamlines user productivity across all departments.
Moreover, secure mobile accessibility provides
management the ability to make decisions based on
real-time data anywhere business is being conducted.
Growth
The ultimate goals of every company are profitability
and growth, and the path to growth is made simpler with
Cloud ERP.
BUSINESS FOCUS ARTICLE CONTINUED ON PAGE 180