Features to Look for in An ERP Software for Nutraceutical Distributors

One of the primary reasons nutraceutical distributors begin looking for new business management solutions is that their legacy system needs to catch up in critical operational capabilities.

When your company’s current fulfilment processes or warehouse operations do not function effectively, or when your product catalogue rapidly expands, and your current systems are incapable of supporting this expansion, you should consider looking for an ERP solution.

The sales staff may provide another sign. Suppose the sales team needs help to produce and price bids and manage reorders. In that case, an ERP system that automates critical business activities and accelerates the sales funnel will help.

By selecting an ERP with capabilities that fit your needs, you can avoid costly headaches in the future. Here is a summary of ERP software features to assist you with your ERP business decisions:

Order Management in Sales

Sales order management elements in modern ERP systems for nutraceutical distributors automate order processing, sales analysis, and sales channel management. This is accomplished by importing customer information from omnichannel ordering solutions.

A proper ERP for distribution organizations should have the following sales order management functions:

• Sales Order Processing
• Sales Order Promising
• Sales Order Inquiry
• Sales Order Reporting
• Shipping Management
• Return Management
• Document Management
• Self-service for Vendor
• Customer Pricing

Financial Administration

Look for an ERP that provides financial information at the item and customer levels. Many financial planning tools can be included as accounting components.

Your ERP software may also support tax legislation, currencies, payments, and automatic cost calculators relevant to your industry and business.

• Profitability Analysis
• Cost-to-carry Optimization
• Asset Management
• Accounts Payable
• Accounts Receivable
• Budget Forecasting
• Order Billing and Invoicing
• Financial Reporting
• Debts Management
• Payroll Management
• Taxation Management

Warehouse Management

Order fulfilment and processing are managed by ERP and a warehouse management system, providing more precise inventory information. This aids in automating choosing, packaging, shipping, and putaway procedures.

Look for ERPs that include the following warehouse management features:

• Slotting Optimization
• Picking Procedures
• Demand Correlation
• Warehouse Optimization
• Shipping Management
• Kitting Functions
• Tagging Functions (barcodes and RFID)
• Outbound Processing
• Wave and Load Planning
• Container Packing
• Multiple Warehousing
• Off-site Equipment

Customer Relationship Management

Account, contact, and customer identifiers apply to nutraceutical distributors linked to the ERP. Correctly utilizing this data can have a substantial impact on consumer satisfaction.

Aside from gaining insight into consumer behaviour, manufacturers and nutraceutical distributors can better respond to client requests by utilizing CRM capabilities such as:

• Contact Management
• Inquiry Management
• Quotes and Estimates
• Promotions Management
• Sales Force Management
• Opportunity Analytics

Inventory Control

Customers want their purchases to be in stock, yet inventory is constantly changing, with the threat of overstocking looming. Distributor ERP software should provide real-time stock analytics and the capacity to estimate inventory to match demand precisely.

Nutraceutical distributors are interested in the following functions:

• Inventory Control and Availability
• Inventory Costs
• Demand Forecasting
• Inventory Tracking & Replenishment
• Requirement Planning
• Multiple Warehousing Options

Procurement Management

Nutraceutical distributors require ERPs with full procurement capabilities to keep their operations running effectively. These systems aid in the management of third-party orders, drop shipments, and the scheduling of recurring purchases, such as:

• Bid Management
• Purchase Orders
• Purchase Management
• Multiple Shipments
• Procurement Planning
• Supplier Relationship Management
• Supply Chain Planning

Now that you’ve determined which features are most important to you, it’s time to delve even further. Preparing an RFP (request for proposal) will assist you in developing the appropriate questions for your provider.

It all comes down to your needs, knowledge, expectations, and the unique pain areas your company is experiencing.

Project scope, timeframes, budgets, vendor qualifications, contractual requirements, and the award process should all be included in your RFP. While investigating your needs, you may realize if a multi-channel eCommerce or trade solution is what you should be looking for.