By Dhinesh Palaniappan, Vertical Head for Trading, Retail and Distribution, Product Development, Orion™ ERP
We are living in an age where the electronics market is governed by how the products are placed, bought, and re-ordered. The plethora of features offered by these products are enticing, but they also take a toll on the devices, which leads to their life cycles being unpredictable. This in turn creates uncertainties in the re-ordering cycles, which pressurize the supply and distribution networks.
The electronics distribution industry is highly customer-centric, with electronics companies being engaged in a perpetual battle between demand variability and supply variability.
Today, traditional demand planning and supply chain planning are no more adequate to meet the challenges of the future, pertaining to the consumer electronics distribution industry. To manage the intense pressure from competition, shrinking margins and difficult-to-please consumers, consumer electronics distributors and traders need to create a supply chain roadmap that expands the scope and role of supply chain management. This scenario calls for cutting edge technology such as a well-equipped ERP software suite that can effectively cater to the dynamic and volatile consumer electronics distribution industry with its smart industry relevant functionalities such as the five features mentioned here.
In-demand features of distribution ERP that make it indispensable for electronics trading and distribution businesses:
- Inventory/ Stock Management
- With the ability of a consumer to order online and pickup at store, or the ability of a retailer to ship from store, accurate inventory management is crucial. With customers having so many channel options to purchase products, having the right product in stock has never been more critical or challenging. Ending up with excess or low inventory and even a complete stock-out is detrimental to any trading as well as distribution business. An electronics distribution ERP software can address this issue with an integrated warehouse management system (WMS) that provides end-to-end functionalities to manage and monitor a wide range of operations. It keeps track of every inventory item that is ordered, received, stored, picked, packed, and shipped.
- Financial Management
- A reliable finance module is the dire need of the hour to keep business afloat of retail chains that operate across geographies. Electronics traders as well as distributors need 360-degree visibility into financial aspects such as being in-sync with their head office over store pricing, running successful promotional campaigns, monitoring a complicated supply chain, enhancing retail touch point experience, etc. Without a time, proven technology, keeping expenses under control and managing financial activities of multiple business sites in an integrated manner is difficult. However, an ERP system seems to be the apt technical solution in this scenario. An ERP finance module can simultaneously discharge critical and major enterprise financial operations which involves sound and in- depth financial planning and management, comprehensive handling of business finances, risk incurred market dealings, spur profitability, better product pricing and value, simplifies and automates time consuming iterative operations, handles with ease multiple regulatory compliance. It seamlessly integrates business processes across all industry segments with its inbuilt processes and applications.
- Data Error/ Redundancy
- When data gathering is done with legacy software’s or manually, there is an increased risk of human error as well as data repetition. This can negatively impact the overall business efficiency of a distribution company. Re-entering data is not only time consuming, but it can interfere with important processes thus delaying revenue generating opportunities. Repetitive data causes confusion, increases order time, disrupts procurement as well as order fulfillment and the like. A well-equipped distribution ERP software solution provides 360-degree visibility into a trading and distribution business by integrating its operations, processes, and practices. It facilitates businesses by storing data centrally. Moreover, cloud-based ERP software’s present information that is updated in real time. This type of data helps to maintain a smart inventory, manage multiple supply chains, operations both in the local and international scale, etc.
- Data Management
- As the demand for a variety of products are constantly increasing with every passing day, stakeholders must be prepared to deal with any possible problems that come their way invariably. They need to dedicate themselves to finding the right harmony between costs, revenue, and service. For this to happen, they must collaborate with their coworkers, and unfortunately, getting on the same page isn’t usually the top priority. It can be a struggle to get everyone on your team in agreement. This inability to balance daily decisions can slow down the decision-making process and hold you back when you need to respond to changes in supply, demand, or capacity. A centralized data hub established by electronics trading and distribution ERP software provides real-time actionable organizational data that aids the management to make data-driven decision making as well as devise smart business strategies. This data can be easily and quickly accessed by both the stakeholders as well as the workforce. Even a minor change in information is reflected in no time and the entire business empire functioning across the globe becomes aware of it instantly.
- Supply Chain Management
- Across the consumer electronics industry, the time to respond to market demands and changes is shrinking. The viral effect of social media can create and destroy demand practically overnight. Manufacturers need to be agile and flexible, ready to expand and grow their supply and manufacturing networks in an environment that does not allow accurate forecasting. On the demand side, manufacturers need to adopt an aggressive degree of collaboration with retailers so that they are better positioned to respond to changing demand. A cutting-edge ERP system for electronics distribution and trading offers smart industry solutions to effectively manage operations from inception to fruition of local and global supply chains. It can automate workflows, thus reducing overhead and operational costs. It eases collaboration across multiple departments as well as organizations working within a specific supply chain. It enhances the scope of customer service leading to increased customer retention and generating greater chances of repeated business opportunities.
In a nutshell:
In today’s competitive digital era, an ERP software has become a must have for consumer electronics traders and distributors irrespective of the size of their enterprises. An ERP distribution software solution has emerged as a one-stop technology that can address numerous challenges, meet dynamic business needs, integrate processes, expedite operations, streamline procedures and practices, thus enhancing overall business efficiencies. Orion™ ERP for consumer electronics distribution and trading businesses is a tailored solution. It encompasses the aforementioned features and much more, giving you the competitive edge in the global market. It has proved to be a comprehensive technical solution for all sized electronics trading and distribution businesses worldwide. Contact us today to learn how Orion™ can help grow your business.