Industry 4.0. You’ve heard the term and all the phrases that come with it, from IoT to blockchain. Continued modernization affects distributors everywhere and they’re being forced to get with the times or step aside. One of the best ways companies are staying ahead of the curve is through modern distribution ERP software, since many of them bring along the innovations in machine learning and AI tools that are permeating manufacturing and distribution. Plus, having a single system that handles the majority of their business on one platform, rather than tracking down figures, reports, inventory, and data from fragmented systems, is every finance team’s dream.
This is what Microsoft set out to accomplish with Business Central, and here are 5 great reasons why it could be the distribution ERP your organization needs to adopt.
1. Leaving Legacy Systems That Can’t Keep Up
The old adage “if it ain’t broke” shouldn’t hold your business back. Sure, everyone at your company can be comfortable with a system but when you really look at your legacy software, it’s important to consider what the risks are of sticking with it?
Fragmented Data
If all your valuable data is siloed in different systems, that’s a potential roadblock. It becomes time-consuming for your team to build reports and provide insights.
Business Central removes those barriers by becoming a single source of truth, storing all your data in one place or integrating seamlessly with outside sources to, again, centralize.
Patchwork Integrations
Speaking of integrations, many companies use different systems to cover their different needs: finances, inventory management, project management, and the like. What often happens, especially as these systems get outdated, they stop playing nicely with each other.
Modern distribution ERP software should eliminate that issue. Business Central is comprehensive, covering all your bases in one place, and of course works well with the whole Office suite. What’s more, it’s the most current offering from Microsoft, and is receiving all of its attention and funding to stay current and up to date. That means, if you need any integrations, they do so easily.
Lack Of Support
Did you know that Microsoft is ceasing its support of SL and GP in the next few years? That happens with most legacy systems out there (see above: supporting the shiny new thing). When that happens, many companies are either left floundering (unless they find a technology partner who still supports the platform) or forced to upgrade when they weren’t prepared for it.
Microsoft is on top of their latest product. Vendors like us at Intellitec are also on top of it. You’re much more likely to find current support for a current product.
Security Risks
Legacy systems can become a weak point in a business’ armor. The aforementioned lack of support often means no more updates which, ultimately, leads to weaker security as cyberthreats continue to evolve.
A modern distribution ERP software like Business Central utilizes blockchain technology to make security nearly impenetrable. You also have full control over user access at varying levels in your database. Both of these factors provide trust for your business partners and reduce data breaches, fraud, and other security issues. Finally, as a cloud-based ERP, updates are automatic, so you can trust you’re protected from the latest threats.
Growth Stagnates
Outdated systems, especially on-premises, have their limits, which can affect your business growth. When you need to expand or contract your databases, for example, that’s a process when you’re dealing with a physical solution. Or if your business is ready to expand globally but you’re still manually handling conversions, slowing down consolidations, that’s also a problem.
For growth-focused distributors to keep up with the new industrial era, cloud-based distribution ERP software seems to be the way to go. You have infrastructure-free IT that provides nearly endless scalability and flexibility for your business. Supply and demand are fickle, so whether you’re operating one or hundreds of facilities, you want a system that can handle changes on the fly without a ton of hands-on oversight while supporting your growth with ease.
2. Built for the Cloud – No More Workarounds
Bouncing back to the “if it ain’t broke” situation, too many companies try to keep their legacy systems going with clunky workarounds. Yeah, sure, it works but… why suffer when you can have a system that can just do the thing you want it to do?
People can complain about cost, and we get that. Thankfully, true cloud distribution ERP has a proven ROI. In fact, a recent study shows that most ERP implementations finished on budget or less than expected (and considering 75% of adoptions were for cloud ERP, that tells you something there). You benefit from having less IT overhead as a cloud system does more work but doesn’t require hiring more people to manage it. In fact, cloud-based systems often free up IT personnel for more strategic tasks since automations and the host company handle most maintenance and all updates. That time saved equates to money saved.
All that said, a cloud-ready distribution ERP solution works out of the box with minimal need for customization. Your departments and their teams have 24/7 access to the data they need, providing better communication, collaboration, and visibility. You won’t need to invest in more physical data storage or the space to put it, further reducing overhead. Plus, any customization you do need is so plug and play these days, it’s easy to find a solution that will work as intended without you needing to do backflips to accomplish it in Business Central.
3. Seamless Integration with the Microsoft Stack
Most businesses operate within a Windows environment, so it’s likely a lot of distributors also work with Microsoft’s various products: Outlook, Excel, Teams, SharePoint, Power BI, and the Office suite. While that doesn’t present a big issue for many legacy systems, few of them offer direct integration between platforms. Moreover, other modern distribution ERP software relies on “bolt-ons” or third-party connectors to have their Microsoft products talk with their main system. That can lead to slowdowns, amongst other compatibility issues, over time.
We touched on this a bit but, naturally, you are right to expect Business Central does integrate seamlessly with Microsoft’s other tools and software. You barely need to lift a finger or need someone from IT to install the workaround — out of the box, it talks to whatever Microsoft program you use. You’ll have an interconnected software system that eases collaboration, data analysis, the decision-making process, and more.
4. Smarter Distribution Operations Out of the Box
More specific to the distribution industry are the ways Business Central can elevate your supply chain. It empowers your team with tools that can better manage your warehousing, inventory, orders, and more, creating a more flexible, visible and responsive operation.
With automations set up for your suppliers, you’ll be able to track deliveries and other KPIs that can provide insights into costing, lead times, or order, for example. The machine learning and AI technology can generate algorithms that help with forecasting through data and market trend analysis, letting you manage inventory levels more effectively. Order processing can also be automated to speed up fulfillments while reducing the risk of erroneous data entry and delays. Finally, it comes with solid financial visibility tools that provide excellent reporting that anyone outside of accounting will understand, automation of payment processes, and even a handy feature for modelling financial scenarios to help you plan for the best and worst of times. All of this equates to smoother operations and happier customers.
5. A Path Forward – Without Disruption
Business Central presents as an attractive bundle but one thing still makes a company hesitate: the implementation process. There is a lot that can go wrong if you aren’t prepared. Many businesses worry about downtime and losing one of their most precious resources: data. Both are excellent factors to consider when you’re looking at a possible digital transformation. Thankfully, our Microsoft team at Intellitec has handled a Business Central implementation or two (actually, many, many more than two…!).
One of the best parts of cloud-enabled distribution ERP software is that the install period is MUCH shorter and more affordable upfront than an on-premises implementation. Downtime is measure in weeks, maybe months — not years — no matter how much you want to customize the platform.
As for migrating data, it’s really a non-issue. In our experience, the data migration tools that exist as a go-between with Business Central and other legacy systems work brilliantly. After all, we’ve staked out reputation on that fact and haven’t disappointed. That means that if Business Central is the right distribution ERP for your business, then there’s really no reason to worry about moving forward.
With all of this said, the fact remains you have a lot of choices when it comes to distribution ERP software. Business Central is a great one, though. If you see your own pain points reflected in what we’ve discussed and like the solutions this software presents, then maybe it’s time to innovate. Please feel free to get in touch with our team, too, for a more in-depth look into the system and how it can fit into your distribution operations.
