The COVID-19 pandemic has rocked the world, upending businesses and lives in new ways. The things consumers buy, and the ways they buy them, have changed. For distributors, one of the most significant changes has been the increased use of remote and virtual distribution techniques like drop shipping and digital distribution. Once a foreign concept to distributors, the distribution industry is embracing remote and virtual distribution. In the process, they’re discovering the enterprise resource planning (ERP) solutions like Acumatica can help them realize their remote and virtual distribution plans.
What is Virtual Distribution?
Time was, distribution was a relatively straightforward business. A customer placed an order. Someone picked it from a warehouse, put it in box and shipped it. Done! Today, it’s not so simple. For one thing, customers are increasingly buying stuff that doesn’t exist in physical form. Think: ebooks, music, games, software and so forth. These are digital products. They’re distributed digitally. However, it’s still a distribution business. The customer orders a product or service online via an eCommerce platform. The item is then delivered to them electronically.
Remote distribution means taking an order and delivering it to the customer, just without taking possession of it. Drop shipping is the best example of this. Drop shipping is a popular option for distributors who are expanding product lines, have limited warehouse space, and want to shorten fulfilment lead time. In this scenario, the distributor makes a sale, creates an item purchase order from the vendor, and the vendor ships the item. This process eliminates the need for the distributor to ship the product themselves, saving time and money. The process can easily be managed with an eCommerce platform linked to a cloud ERP system.
There are many advantages to remote virtual distribution. Perhaps most importantly, they allow businesses to connect with larger audiences without being limited by geographical boundaries. They also provide more control over the customer experience and increased flexibility and scalability.
Yet, moving to virtual distribution does not have to be an “all or nothing” decision. An omnichannel selling strategy, for example, multi-pronged selling via online, in-person, or phone channels, creates a “best of both worlds” scenario.
Use Cloud ERP to Manage Virtual Distribution
Successfully managing virtual distribution requires the right technology tools. A cloud-based ERP solution can be beneficial. An ERP system consolidates all of an organization’s departments and applications into a centralized system. Financials, sales, marketing, operations, and third-party software can all be managed in one place. This provides distributors with a complete view of their business and customers, which is essential for making informed decisions about the future.
How Acumatica Can Help
Acumatica’s software has both eCommerce capabilities and distribution-specific software, either through integration with an eCommerce platform or built into the solution itself. Its Wholesale and Distribution software automates and integrates the quote-to-cash cycle and provides configurable workflows. The software has open APIs connecting to distribution applications, such as eCommerce. Acumatica also offers its Retail-Commerce software and has teamed up with powerful eCommerce platforms, including BigCommerce and Shopify.
If you’re looking for a comprehensive cloud solution to help manage your virtual distribution, contact us today to learn more information about how Acumatica can help.
Additional Distribution Resources
Top 3 2022 Distribution ERP Trends to Watch: How To Remain Competitive in a Crazy World
Metrics That Matter for Distributors: What are the Benefits?