Updated · Originally published
In the ever-evolving landscape of software and technology, it can be tough to keep up with key terms and definitions — especially if you're just getting started. ERP solutions have their own terminology, and so do distributors. So it's understandable that the language surrounding implementing new business systems makes some scratch their heads.
For anyone or who could use a refresher, we’ve compiled a list of acronyms and their definitions you’ll want to know when moving forward in the world of distribution business software.
The ABCs of ERP for Distributors
Operational ERP
At Cavallo, our approach to ERP for distributors is distinctive. Therefore, we coined the term Operational ERP: business management software focusing on functionality most needed by manufacturers and distributors. Among other things, that functionality includes inventory management, purchasing, and order processing. Operational ERP leaves other ERP tasks, such as accounting, human resources, and marketing automation, to integration partners.
CRM (Customer Relationship Management)
helps companies analyze and manage customer interactions and data throughout the sales pipeline. CRM aims to improve customer relationships, increase customer retention, and drive company growth.
Workflows
designates the path a document (sales order, purchase order, quote, invoice, sales receipt, return, refund) travels toward completion. The route includes different batches or queues for each stage in the workflow process. By establishing a clearly defined path for documents and specifying requirements for moving to the next step, companies can reduce errors, increase efficiency, and have a reliable checks and balances system. Automated workflows ensure even better efficiency and security.
Order Processing
Order processing refers to the entire workflow of an order. It begins when a customer places an order and progresses through fulfillment (picking and packing ordered items) and shipping. It’s the journey of an order from beginning to end.
Purchasing
Purchasing refers to procuring goods from vendors to stock inventory at your facility. Strategic purchasing is essential; you can’t sell merchandise you don’t have.
Inventory Management
describes how a company supervises stock items. This includes how raw materials and finished goods move from vendors to warehouses to the point of sale. Inventory management software controls ordering, handling quantities, pricing, and storing goods. Successful inventory management will ensure that goods are readily available upon request.
Omnichannel
Omnichannel refers to the options available for consumers to engage with your business. Various shopping methods include online through desktop or mobile device, on the phone, or in a retail store.
Multi-channel
Multi-channel refers to the various ways a company can reach out to potential customers. Channels include print, retail stores, websites, events, campaigns, package design, or word-of-mouth.
EDI (Electronic Data Interchange)
enables a distributor to send item information to an online retailer electronically and for the online retailer to send order information to the distributor. EDI allows companies to sell their products through online businesses as large as Walmart, Target, and Best Buy.
Solutions Made by Distributors, for Distributors
These ERP definitions offer a guide for distributors just getting started with digital transformation. They can also provide a refresher for those with business experience who need an update on current terminology. If you're ready to go beyond the basics and start optimizing every aspect of the distribution process, are the next step.
Accelerate revenue, boost efficiency, and maximize profits with a no-code workflow, intuitive , integrated customer management, and more.
Founded by experienced distributors and perfected over spent optimizing distribution supply chains, no company is better positioned to guide your growth than Cavallo. Why not to learn why business software designed by distributors, for distributors, can make all the difference? with our experts to learn more.
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