Speed Wins
Today’s B2B distribution market demands speed—not only to compete, but to
survive. Here’s how distributors can become faster and better.
Epicor White Paper
i
Table of Contents
Data ���������������������������������������������������������������������������������������������������������������������� 1
Automation ����������������������������������������������������������������������������������������������������������� 2
Digitalization ���������������������������������������������������������������������������������������������������������� 2
The Cloud �������������������������������������������������������������������������������������������������������������� 2
Gaining Speed With ERP ���������������������������������������������������������������������������������������� 2
Speed Wins
Speed Wins
1
Distributors have faced numerous challenges eversince the B2B distribution market has existed�
Today, there are more challenges than ever� They include an often uphill battle to increase
digital capabilities seen in the B2C world to match changing customer expectations; finding
new and qualified talent to replace a generation of Baby Boomer staff that still comprise a large
portion of executives and managers; they include the threat of suppliers bypassing distributors
in the supply chain and selling direct to customers; and as always, competition from fellow
distributors—large and small�
Amidst all those foes, one factor has remained a powerful weapon for distributors—speed�
The ones that progress against these challenges the fastest have a natural advantage� The
distributors that can process orders, adapt to market and customer trends, and respond to
customer needs quicker than their competitors stand to win repeat business and grow their
reputation as the best solution provider available�
This white paper will examine areas where distributors can become faster and the tools available
to get there� Primarily, we’ll look at the following:
X Data
X Automation
X Digitalization
X Using the cloud
Data
“Big data” has been a hot topic across all of manufacturing for more than a decade, resulting
in distributors and suppliers employing numerous methods of harvesting as much business data
as possible� In doing so, many overlook the data already organically available to them, as well as
how to make sense of all that information�
“They actually have most of this data right now—the problem is that the data is difficult to
access� It’s essentially buried in their enterprise resource planning (ERP) system,” said Tony Corley,
senior product marketing manager at business software solutions provider Epicor� “The problem
is the toolset to access that data� They need a toolset where the people who need and use the
data can actually go in and look at it on their own�”
However, data itself is only useful when it’s relevant to business decisions� Sales and inventory
data is important for salespeople, but it needs context� Data that presents a snapshot of a
customer will only go so far� Much more useful is data that illustrates that customer’s past
buying behavior, which can be used to forecast future behavior�
“It’s not just looking at your data today, seeing a snapshot
of sales or inventory. You need to see that in context and
over time. Are metrics getting better or getting worse?”
—Tony Corley, Sr� Product Marketing Manager | Epicor Software
Speed Wins
2
Automation
When one thinks of automation in
manufacturing, images of robotics
and complex machinery often come to
mind� However, for most distributors,
the area where automation is best
applied is in back-office functions� Even
with all the digital tools available to
distributors today, many are still printing
out emailed purchase orders and then
manually entering those orders into a
spreadsheet� This dated method not only
uses a substantial amount of time and
paper, but can easily result in a cluttered
office and lost documents� It’s a natural
business bottleneck�
“All the order information and customer
data is already there on an emailed
PDF—why would you want to re-key
that?” Corley said�
In many cases, the data that distributor
staff are manually entering into their
operating software has already been
manually entered by someone else in
the supply chain� It’s a redundant task,
considering the automation tools—like
data capturing, order entry, document
storage, audit trail, and email alerts—
available today across accounts
payable functions�
Digitalization
Digitalizing a paper-based distributorship
can be a painstaking task� While many
distributors have made great strides in
adding digital tools—like enhancing
their website and adding or upgrading
eCommerce—other, more basic areas
remain causes of slowdowns� A couple
major areas are the product catalog—
often the calling card of long-established
distributors—and order picking�
“I’ve always thought having a clean,
accurate item file or digital catalog is the
first point,” Corley said� “If you have
a good catalog, everything downstream is
easier� It’s easier to find the right part and
eliminates accounting errors� Digitizing your
catalog will improve about seven to eight
other processes�”
In the warehouse, many distributors still have
employees pick orders the old-fashioned way
of walking around aisles with a piece of paper�
Bar coding has revolutionized and streamlined
this process�
“Most vendors, if they’re not already offering
bar-coded product, probably will if you ask
them,” Corley added� “If you can streamline
that process, everything downstream is better
because no one picks a wrong product or
takes a wrong count�”
The Cloud
The cloud becomes increasingly engrained
in our everyday lives each year� Whether
used for streaming media, storing photos, or
file-sharing, cloud-based functions are now a
crucial function of our digital society�
Distributors are just finding the tip of the
iceberg when it comes to using the cloud
for business functions� Serving as a virtual
file server, the cloud enables distributors to
offload much of the heavy lifting typically
involved with manually operating their
business software and allows them to take
their business on-the-go� Having the ability
to track business data and make adjustments
in a mobile setting results in quicker decision-
making and empowers outside salespeople by
putting their business at their fingertips�
Gaining Speed With ERP
These key, speed-boosting tools—data,
automation, digitalization, and the cloud—
are strongpoints of modern ERP software�
Yet, Industrial Distribution’s 2018 Survey of
Distributor Operations showed that only 38
percent of respondents have an ERP system�
A major factor in that percentage is many
distributors running their business on the
same homegrown software for more than a
decade� Even if that software has since paid
for itself and still performs the basic functions
it did when it was first launched, the dark
truth is that it may be dragging down the
life of the business� Distribution tends to be
a legacy run industry, where executives are
happy to coast on the mantra of “if it ain’t
broke, don’t fix it,” when it comes to business
software� Those executives may be oblivious
to the speed their business can gain with
modern ERP software�
Unlike transaction-based legacy business
software, today’s ERP provides unlimited
access in a modern, open database
environment that gives employees the ability
to analyze data� By providing real-time
information, those employees can make
better decisions to improve customer service�
ERP software’s automation of mundane
order-entry tasks gives employees more time
to focus on customers, and those customers
will see faster responses and more accurate
service� Modern systems offer key modules
such as volume rebate tracking, customer-
facing order entry, front counter capabilities,
document imaging, assembly/disassembly
modifications, and job-based pricing�
Customers rely on distributors for services
now more than ever, and distributors have
responded by boosting their service offering
as a way of differentiating from each other
and deepening relationships� At Epicor, its
popular Prophet 21® software has expanded
with its distribution customers, integrating
CRM functionality and manufacturing
modules for kitting and assembly, as well as
service and repair�
“That line is being blurred between what a
distributor is and what a manufacturer is,”
Corley said� “We’ve done a lot of work in
these past few years to improve our value-
added functionality, like manufacturing, third-
party processing, and service and repair� As
distributors have expanded and offered more
to their customers, so have we�”
About Epicor
Epicor Software Corporation drives business growth� We provide flexible, industry-specific software designed to fit the precise needs of our
manufacturing, distribution, retail, and service industry customers� More than 45 years of experience with our customers’ unique business
processes and operational requirements are built into every solution—in the cloud or on premises� With this deep understanding of your
industry, Epicor solutions dramatically improve performance and profitability while easing complexity so you can focus on growth� For more
information, connect with Epicor or visit www�epicor�com�
Contact us today [email protected] www.epicor.com
The contents of this document are for informational purposes only and are subject to change without notice� Epicor Software Corporation makes no guarantee, representations, or warranties with
regard to the enclosed information and specifically disclaims, to the full extent of the law, any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality, or
reasonable skill and care� This document and its contents, including the viewpoints, dates, and functional content expressed herein are believed to be accurate as of its date of publication, August 2018�
The results represented in this testimonial may be unique to the particular user as each user’s experience will vary� The usage of any Epicor software shall be pursuant to the applicable end user license
agreement, and the performance of any consulting services by Epicor personnel shall be pursuant to applicable standard services terms and conditions� Usage of the solution(s) described in this document
with other Epicor software or third-party products may require the purchase of licenses for such other products� Epicor, the Epicor logo, and Prophet 21 are registered trademarks or trademarks of Epicor
Software Corporation in the United States, certain other countries and/or the EU� Other names may be trademarks of their respective owners� All other trademarks mentioned are the property of their
respective owners� Copyright © 2018 Epicor Software Corporation� All rights reserved�
About This Report
The information in this report was researched and produced by Industrial Distribution in conjunction with Epicor� Statistical data was researched
and compiled by Advantage Business Marketing in May 2018� Adapted from Industrial Distribution June 2018 iReport
Speed Wins
Distributors can work with leading ERP
providers to find the best-fit solution for
them—whether that means cloud-based
or on premises, as well as an all-in-one
solution or just once facet� No matter
what route they choose, ERP software has
long proven to inject speed into distributors’
business, allowing them to compete better in
today’s rapidly evolving marketplace�
“We’re fit for distribution� That’s what we
focus on, that’s what do�” Corley said of
Epicor� “Customers get an out-of-the-box
solution that is easy to train and easy to use�
That allows our customers to grow
their business�”
