Distributors live on stock turns and credit. The right ERP keeps both visible: what is on the shelf, what is on order and who owes how much for how long.
Priorities for distribution
| Area | What it should do |
|---|---|
| Multi-warehouse stock | Stock by location, transfers, in-transit visibility |
| Purchase planning | Reorder levels, supplier lead times, suggested purchase |
| Sales | Party-wise price lists, discounts, quotation to invoice |
| Credit control | Credit limits, ageing, block or warn on overdue parties |
| GST billing | Invoices, e-way bill, returns data |
| Collections | Outstanding by party and salesperson, payment follow-up |
Where distributors lose money
- Stock-outs on fast movers and dead stock on slow ones.
- Credit given beyond limits because nobody sees the ageing.
- Price differences between salespeople.
- Manual e-way bills and delayed dispatch.
Reports to ask for
- Stock ageing and fast/slow moving
- Party-wise outstanding with ageing
- Purchase versus sales by item
- Margin by item and customer
Example: a three-warehouse distributor
A distributor with three warehouses wants to avoid shipping from a far warehouse when a near one has stock. With real-time multi-warehouse stock, the sales desk sees where each item is and can promise a delivery date confidently. Purchase sees which warehouse is running low and can raise stock transfers before buying from suppliers.
The same system holds party credit limits, so the order desk is warned before dispatching to a party that is already overdue.
Related guides: ERP Software Development Company
ERP Software Development Company IndiaInventory Software for Wholesale & Trading BusinessesOrder-to-Cash in ERPProcure-to-Pay in ERP
ERP Built Around Stock and Credit
Book a demo with your own item list and party ageing.
Book a Free Demo +91 98115 51004