The Industrial Distribution Industries’ Growing Embrace of Automation

Building supplies, construction, specialized tools, and fasteners are just a few of the industries that fall under the umbrella of industrial distribution. There are numerous recurring themes and issues in this varied environment, ranging from industry mergers to aging workforces and supply chain disruptions. Automation and digitization are critical to meeting these challenges and to achieving growth in this space. The software applications within Enterprise Resource Planning (ERP) systems offer an intelligent, scalable solution to complex supply chains, helping distributors adapt fast.

ERP systems are strategic investments that have the power to revolutionize the industrial distribution industry. They offer better insight and decision making to help businesses maximize their resources and achieve sustainable growth by optimizing processes, enhancing data accuracy, and offering actionable insights. ERP applications are critical to companies because they help them implement resource planning by integrating all the processes needed to run their companies with a single system.

Transformative Automation

An essential part of the global economy, the industrial distribution sector acts as a link between producers and consumers of a wide range of goods and machinery. The need to increase overall operational efficiency and enhance inventory management is a major factor driving distributors toward transformative automation.

Distributors can improve the collaboration and integration of their planning processes by ensuring their ERP solution offers modern processes that can analyze data, predict trends, and stay abreast of emerging breakthroughs. An organization-wide alignment of stocking strategies and improved inventory level management are made possible with ERP, which offers a uniform view of inventory, resulting in higher fill rates, improved inventory mix management, and lower costs, all of which are critical during times of economic volatility.

Technological developments and evolving company strategies are causing a time of dynamic change in the industrial distribution industry. Businesses with less sophisticated technologies may find it more difficult to compete as these trends continue.

Here’s a look at several trending ROI-producing ERP applications that automate distribution processes.

Mobile Technology

Mobile app technology such as proof-of-delivery (POD) and Order Entry are transforming how wholesale distributors operate. Distributors may track shipments, manage inventory, and interact with consumers from any location by using mobile apps. This adaptability enhances overall operational efficiency and enables speedier responses to consumer requests.

For example, a Proof-of-Delivery (POD) app captures signatures and photos, and tracks deliveries in real-time, giving the user complete control over the delivery process. A POD app capture latitude/longitude coordinates for undeniable proof of delivery, track’s location and manage routes, collects payments, plus prints or emails delivery receipts and invoices.

Mobile Order Entry applications allow both sales reps and customers to place orders from anywhere, with an easy-to-use application. It also allows customers to view inventory levels, track shipments and more.

And that’s just a few capabilities mobile apps can add to boost efficiency in your processes.

E-Commerce Automation and Digital Transformation

E-commerce has become essential to the wholesale tool distribution industry by providing advantages like automatic billing, time savings on the quotation process, and visibility into inventory and orders. To expand their consumer base and improve their purchasing experience, many distributors are turning to online channels. This change makes it simpler for clients to locate and buy tools by giving wholesalers access to a worldwide audience. It is anticipated that e-commerce platforms will account for a sizable amount of retail sales as online buying keeps expanding.

Warehouse / Stockroom Management

The way wholesale tool distributors run their businesses has improved greatly due to warehouse automation, which lowers labor costs, improves safety by taking over hazardous tasks, and increases distribution center efficiency.

Controlling the flow and storage of materials in a warehouse and handling related tasks like shipping, receiving, putaway, and picking are the main goals of a Warehouse Management System (WMS). To effectively manage inventory logistics and guarantee effective warehouse operations, WMS solutions are an essential part of the larger supply chain management process.

A WMS can improve accuracy in the warehouse and increase the efficiency of miss picks while speeding up the receiving process while a stocker replenishment feature which makes it easier for pickers to find what they need.

Customer Relationship Management

Sales Force Automation is a multi-functional CRM that gives salespeople the resources they need to cultivate current clients and create new ones. It integrates real-time access to price, inventory, and customer data with contact/business management. In the end, this maximizes success and drives new sales by enabling sales representatives to efficiently handle customer demands, track orders, and provide quotes promptly.

In a testimonial video, Dean Spicer, Information Systems Manager at Acme Tools Company, shared that VAI’s CRM is good from a process perspective, concluding that without ever leaving the application, he can complete a quote, close the deal, and take care of customers from start to finish. And with everything right there, users do not need to learn multiple applications.

Conclusion

When considering the industrial distribution sector's future, it is evident that the industry is fueled by a confluence of technological, operational, and market advancements. Transformative automation is projected to revolutionize inventory management and planning, making supply chains more responsive and efficient. Businesses who embrace and adapt automation are likely to emerge as leaders in the industrial distribution industry and be strategically placed to best weather industry hurdles and challenges.

VAI ERP: A Complete Solution for the Industrial Supply, Specialty Tools, and Fastener Industries

Our industry webinar is a great way to learn more about ERP functionality for the industrial supply, specialty tools, and fastener industries. The webinar, titled VAI ERP: A Complete Solution for the Industrial Supply, Specialty Tools, and Fastener Industries is being held on November 21^st at 2:00 PM EST.

The webinar offers a look into how applications within VAI’s ERP solution helps industry-leading companies like Acme Tools and Kinnunen Sales & Rental improve inventory management and forecasting capabilities, streamline operations, guarantee product stock, and enhance customer service.

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