Why Microsoft Business Central Is the Best Choice For Modernizing Distribution Business?

Marketing Team
Published on April 7, 2021

As far as digital transformation is concerned, reports suggest that small and medium businesses have the most at stake. A preconceived notion across all industries is that switching to technology from traditional processes can be costly and time-consuming. Nonetheless, with the right set of tools such as Microsoft Dynamics Business Central, upgrading from legacy systems that come with different maintenance and compliance regulations, will no longer be a hassle.

Microsoft Business Central is a comprehensive platform with the capabilities of ERP and CRM systems that have been specially designed for small and medium-sized businesses. Therefore, implementing this all-in-one solution will help your distribution business align with the latest changes in the market and smoothly your supply with the current trends of demand.

Current Challenges In the Distribution Industry

Businesses in the distribution industry can be equated with the primary source of a funnel. Once the balance of the distribution market is jolted, every other sector is likely to feel the tremors. However, owing to the constant change in market demand and customer preferences, the distributors are forced to function from the very edge and alter their operations in the most cost-effective way to maximize ROI and be at the top of their game at the same time.

Maintaining a balance between demand and supply could be far more challenging than it seems. Apart from its immediate surroundings, a distribution business can be affected by worldwide activities such as competition from the stalwarts and consumer demands. For distributors to make their mark in this ever-changing market and spare themselves from inventory mismanagement these events must be anticipated accurately.

While predicting these patterns, distribution businesses must always be on the lookout for new opportunities, streamline the existing operations, control expenditures and work towards improving customer service after successfully closing deals.

Advantages Of Using Microsoft Dynamics Business Central For Distributors

Considering the large variety and volumes of data available with companies today, gaining flexible and prompt access to relevant pieces of information should be prioritized. Microsoft Dynamics Business Central can help distributors formulate data-driven decisions, be more accurate with inventory replenishment and order processing and strengthen consumer relationships.

Inventory Management

Hands down, the most important feature of Business Central that distribution businesses can capitalize on is precise inventory management. By bringing together all the data your company has access to, you will have a better idea of the stock profit margins and stock levels to make way for accurate demand forecasting. Moreover, a 360-degree of your services would be helpful in identifying the areas that call for improvement and provide an opportunity for drilling down costs for maximized ROI. Delineating successful pricing strategies is possible only when customer needs are met and profit margins are stretched over time as well.

Procurement And Warehouse Management

Microsoft Business Central is capable of automating both compliance and purchase thereby, letting you control the costs more proactively. Transparency of the purchasing cycle is the first step towards reducing wastes, raw material, and preventing stock damage. By streamlining every process starting from ordering to transportation, accurate, you can work with accurate, real-time reports from any device. This way, the approach of dealing with procurement and warehouse management becomes proactive rather than reactive thereby, boosting productivity levels and staff efficiency.

Order Processing And Stock Replenishment

Running order processing efficiently is one of the chief factors that influence the success or failure of a distribution business. The integrated capabilities of Dynamics Business Central can organize and bring together the processes of email invoicing, payment processing, commission management, discounts, and customer support at a single point of truth.

As for inventory management, both low and excessive stocks can pose a threat to the momentum of your business. On one hand, you might fail to deliver orders and lose the hard-earned position in the market due to a shortage of materials. On the other hand, if the market demand is not at par with whatever was predicted earlier, you might lead to irrevocable wastage. By sorting and analyzing historical data, your company can spot hidden patterns and perfectly forecast demand even during the most ambiguous times. For inventory control strategies based on the unique needs of your business and customer base and introduce accurate order analysis and optimization.

Meet EDI Requirements

Comply with the EDI requirements of all your trading partners even if they vary majorly from one another. As data is stored in EDI format by Business Central, accessing and analyzing information whenever the need arises can be simplified. Powerful tools that transform raw data into actionable insights offer extensive EDI functionalities and customization of solutions.