Enterprise Software
for Distributors—Is There a Perfect Fit?
Epicor White Paper
i
Table of Contents
Finding the Best Fit ����������������������������������������������������������������������������������������������� 2
First Things First—What’s in the Box? ��������������������������������������������������������������������� 2
Next—Outside the Box ������������������������������������������������������������������������������������������ 3
Then—Connecting with Everything ������������������������������������������������������������������������ 4
Finally—Think Ahead ��������������������������������������������������������������������������������������������� 5
Summary �������������������������������������������������������������������������������������������������������������� 6
Enterprise Software for Distributors—Is There a Perfect Fit?
Enterprise Software for Distributors—Is There a Perfect Fit?
1
If you’re a distributor considering replacing or implementing an enterprise resource planning
(ERP) system, there are a lot of questions you should ask yourself, such as:
X How will the system help our business execute its strategies?
X How will current and future changes in the industry reshape our company?
X How will the ERP system fit into those changes?
The last thing you want to do is select a system that will need to be replaced in the foreseeable
future, or will require constant—and costly—customization to adapt to changing industry and
business dynamics� Instead, look for a solution that’s designed to fit your distribution business
and has the functionality to support your industry needs� Finding a solution that can perform
100 percent of what you need right out of the box is nearly impossible, especially as businesses
become more specialized� In other words, there’s probably no perfect fit for your unique
distribution business�
Enterprise Software for Distributors—Is There a Perfect Fit?
2
Even with the strongest platform designed for
your industry, no ERP software will be ready to
support your specific business processes and
culture right out of the box� Some will come
closer than others when it comes to standard
capabilities, but nothing is truly plug-and-
play—no matter what the software provider
might assure you� You’ll be hard-pressed to
find a top software provider that doesn’t
claim to offer a fit-for-purpose solution� Some
companies strive to build software solutions
for a specific market or industry, while others
pride themselves on their ability to create one
for you—at a cost� Depending on the nature
of your business, some customization may
be inevitable� The challenge is finding the
solution that can deliver the most value before
customization comes into play�
Later in this white paper, we will touch on
the importance of choosing an ERP partner
that has a vision—an upgrade path—for their
clients� Naturally, you want to know your
system is going to adapt to market changes�
However, your immediate concern is the
software’s ability to work perfectly today�
Large software companies have the third-party
vendor partnerships and bandwidth to build
you the perfect system—for a while� However,
what you need today will definitely differ
from what you need down the road� While
your ERP provider may have a strong track
record of evolving their solutions to meet the
changing needs of the marketplace, you may
find yourself stuck in the past and unable to
easily upgrade� Once you’re running a highly
customized system, you could be looking at
increasingly expensive customization every
time you want to take advantage of updates
and improvements to the base product�
It doesn’t take long for a distributor’s needs to
evolve� Between market changes, increased
competition, and business growth, a perfect
system can become imperfect pretty quickly�
Even homegrown systems that were designed
Finding the Best Fit
If you’ve ever bought a suit, you know
how hard it is to find the perfect fit right
off the shelf� The jacket may fit perfectly,
but the arms are a little too long� Maybe
the pants are the right length, but the
waist needs to be taken in� Overall, the
suit is a great fit, but it’s not perfect�
Selecting an ERP system can be a very
similar process� Instead of wasting time
trying to find the software that fits your
business perfectly, your goal should
be to find the best fit for your most
critical needs�
How do you know the software you’re
evaluating is right for your organization?
Start by following these four steps:
X Compare platforms to find the best
out-of-the-box fit for your business
X Make sure that your preferred
system can be personalized and
adapted without requiring costly and
ongoing customization�
X Ensure that the software will
integrate with other technology
you utilize
X Select a software with a clear
upgrade path for future versions
First Things First—What’s
in the Box?
Finding the software with the
best out-of-the-box fit for
your business
Selecting and implementing a new
business system is a tremendous
investment of time and money, so
your expectations are—and should
be—high when it comes to the
system’s capabilities� You’re searching
for a perfect fit right out of the box—
everything you need to run your business
efficiently and effectively�
specifically for your business can become a
huge burden before long� At MORSCO, that’s
exactly the issue they were facing after several
years on their proprietary software�
“We had a homegrown system that we
just flat-out outgrew,” said Phil Osborn,
vice president of customer and pricing
strategies at MORSCO� “There was no way
to coordinate record-keeping� Every branch
operated independently, making corporate
oversight very difficult� Data had to be copied
and manually sent to the corporate office�
There was no way to instantaneously share
electronic records� The old system couldn’t
even accommodate our ongoing growth�”
MORSCO found their solution in Epicor
Eclipse®—a decision driven largely by the
program’s standard functionality�
“Eclipse solution immediately handled our
business right out of the box� We now
have one system that works equally well
for everyone and is poised to seamlessly
blend new acquisitions and stores with our
existing companies�”
Christian Rescate, COO from ALP Supply, had
similar experiences when his company looked
to replace their ERP system� Their search was
driven by the need for standard functionality
that didn’t require costly customization or
significant programming work�
“We looked at numerous
ERP systems, but
they would have
required a great deal of
customization to meet
our needs,”
—Christine Tine�, CIO | MORSCO
Enterprise Software for Distributors—Is There a Perfect Fit?
3
In his words, they needed a vendor who “…
provided us the best-of-breed solution with
significant off-the-shelf capabilities� We’re
an industrial distributor, so we don’t have an
army of programmers who can take care of a
complex system�”
It’s not easy to determine which vendor has
the most standard functionality to meet your
needs� Vendor websites will idealize their
solution and assure you a perfect fit, but it
takes a lot of research—and perhaps even
a demo—to determine what’s standard and
what’s custom�
You can find guidance with your buying
groups or industry associations� Do they have
preferred vendors? Which systems are other
members using? Which software solutions are
other businesses in your space running?
Regardless of how you determine which
vendors to explore, when you’re ready to
engage, tell them to clearly define what’s
included and what’s going to require third-
party involvement or add-on costs� You
may find a provider can cover 75 percent
of your needs before any customization is
even discussed�
It takes a lot of due diligence to understand
which system can match the depth of your
needs, but first, you just need to determine
which solution can best cover the width
of your project� When the vendor’s core
functionality resonates with your business
and covers a majority of your needs, odds are
the process and cost for any customizations
will be smoother� Asking for details and
pushing back on the vendor’s assurances that
they can meet all your needs is critical� For
example, if you’re an industrial distributor,
knowing your potential vendor can support
things like scheduled orders, VMI, lot tracking,
rebate management, contract pricing, and
similarly specific functionality is a good sign
that they can understand the depth of your
business, too�
Next—Outside the Box
Ensuring the system can be
personalized and adapted without
extensive customization
Finding the solution with the right
functionality is one thing, making it work
for your business without expensive
customization is another� One way to
accomplish this is to ensure that you
can adjust some of the functionality to
complement your business processes and
protocols� You need to find a solution
that has tools for modifying the system
and adapting it to your processes without
changing the application code, which can
cause expensive problems over time� Just as
important as ensuring your system offers the
right functionality out of the box, you need
to ensure the right tools are available to tailor
your system to fit your business processes and
improve efficiency�
Some systems allow you to tailor the
application’s appearance and logic to your
company’s needs� Your users can customize
windows, create user-defined fields, edit or
add new tabs of data, personalize menus,
adjust pop-up searches, add metrics, and even
create customized portals for each employee�
In some cases, you can even write your own
business logic to conform to your company’s
unique processes� Key business data—such as
sales performance against goals—should be
easily accessible via dashboards that adjust to
fit the needs of different users� As more and
more solutions shift their focus to the cloud,
these tools are expanding and improving�
Royal Corporation, a distributor of janitorial
and sanitary maintenance supplies based
in Santa Fe Springs, California, selected the
Epicor Prophet 21® solution in part because of
the system’s flexibility�
Questions to ask ERP
software vendors:
How many of your
customers are distributors?
Distribution is different from other
businesses� You don’t want to
teach a software vendor how the
distribution industry works�
How long has the company
been serving distributors?
Longevity in a technology provider
can indicate whether the company
has the proper experience, and
whether they will be around in the
future to support your business�
Who will implement your
software system?
Remember, you’re not only
investing in software, you’re also
investing in people� The weakest
link in IT implementations is
typically reported to be consulting
expertise, so make sure a vendor’s
staff—design professionals; systems
analysts; financial experts; and
application, technical, and industry
consultants—all understand
distribution inside and out� They
should be able to recommend
strategies and processes for
achieving best-in-class performance
while demonstrating proven ability
to complete implementations on
time and on budget�
Enterprise Software for Distributors—Is There a Perfect Fit?
Is there an annual user
conference focused on the
needs of distributors?
You will benefit tremendously
from being able to network with
your business peers and share best
practices for profitability� Be sure
the software vendor provides a
forum for continuing education
and networking with a significant
user base of companies like yours�
Also inquire if their customer base
has any independent user groups,
and the number of distributors in
those groups�
Is the company a member
of associations and
buying/marketing groups
in your industry?
Does the solution provider attend
or speak at tradeshows, annual
meetings, and other events in your
industry? Do they work closely
with advisory groups to develop
functionality that meets your
industry needs?
Links Unlimited, a wholesale distributor of
promotional products, also uses the Epicor
Prophet 21 solution system� As CTO Brian
Shank stated, “Prophet 21 software has a rich
set of developer tools that give us the ability
to modify it for our needs—whether that’s
through tools…or simply the flexibility it gives
us as a SQL-based solution, we know Epicor is
a reliable solution for us�”
At Productivity, Inc� in Minneapolis,
Minnesota, a business rules engine allows for
myriad ways of streamlining operations� “For
example,” explained Systems Administrator
Cathy Arbuckle, “we created a rule that if
someone cancels an item, they must enter an
explanatory note, and a checkbox on the front
of the order indicates the note exists so no
one has to go into tabs�”
She continued, “In Item Maintenance, we
receive hundreds of new parts each week, and
must track the bins, so we created a rule that
double-checks it’s not a duplicate bin� And for
credit card orders, we automatically populate
the invoice class field as to whether we should
invoice that customer by mail, email, or other
means� We are seeing significant time savings
from these streamlined processes�”
Every ERP system offers a different level of
personalization features� It is critical to know
how much you can adapt the system to your
needs without building a custom solution
from the ground up�
Then—Connecting With
Everything
Ensuring the ability to integrate
with other technology
Perhaps the most important—and most
challenging—consideration when selecting
your next business system is ensuring it can
integrate with all the technology you leverage
to do business� Every ERP company has a
wide range of partnerships with third-party
software companies, but you need to know
that the system has a history of integrating
effectively with any technology you utilize�
That means selecting a tool that works with
your customer relationship management
(CRM) system, your marketing automation
software, your eCommerce solutions, and any
other standard system that’s become core to
your business�
Questions to ask ERP
software vendors:
“The ability for Epicor Prophet 21 solution to adapt to
our business needs without custom programming…has
increased our efficiency, which translates to better service
and value to our customers.”
—Jonathan Soon, Vice President of Operations | Royal Corporation
“We were able to integrate different options, eCommerce
channels, and other third-party integration that we did not
do before. It has really just improved our efficiency, and
I think growth comes in a lot of different ways— it’s the
efficiency of your people, the productivity, the output, the
actual sales, as well as our customer growth, and being
able to easily implement new products that we can offer
as a drop ship and not necessarily stock here.”
—Jessica Mendoza, General Manager | Atlanta Light Bulbs
Enterprise Software for Distributors—Is There a Perfect Fit?
At Industrial Mill and Maintenance
Supply, integration works hand-in-hand
with adaptability and personalization
features to improve communication
and contribute to the success of the
business� IT Director Bobby Brannon
explained, “The flexibility…has allowed
us to do several things we previously
couldn’t, such as launch an eCommerce
site that’s fully integrated with our
inventory levels…and the SQL-based
databases allow us to write scripts that
feed information to salespeople on the
road who may not always have access to
the system�”
Besides integration with other
systems you use, you also need to
work effectively—and securely—
with other third-party systems� That
means ensuring your ERP has a strong
application programming interface (API),
which simply means a connector or
intermediary that allows two software
applications to communicate�
Brian Shank at Links Unlimited gave
this simple example of API usefulness,
“By leveraging the…API, not only are
we able to basically take in orders from
virtually any source, ranging from a file
sent through an FTP site to an email,
to reduce any uncertainty in the order�
This means we can ship out orders
faster, and in turn make our customers
excited about the turnaround time for
their orders�”
All of these examples are relatable to
any distributor, but the importance
of focusing on integration potential
is not limited to the basics� There’s
no precedent for the rate at which
technology is evolving� When you
implement a new business system,
you need to trust that the provider will
adapt to innovations you may not even be
thinking of today� More and more distributors
are embracing new technologies for greater
efficiency—like robotics, artificial intelligence,
and the Internet of Things (IoT)�
Jergens, Inc�, of Cleveland, Ohio has garnered
much attention in the distribution world
for their innovative approach to inventory
management, which they call JIS Express� JIS
Express was conceived and developed as part
of the selection and implementation process
for their ERP—Epicor Prophet 21 solution�
Matt Schron, general manager for Jergens
Industrial Supply Division, said that the project
came from a desire to improve productivity
for customers�
“JIS Express came out of a need we saw at
many customer facilities� JIS Express is an
inventory management solution that allows
our customers to manage their inventory in
a new, unique way,” Schron explained�“It
is a WiFi-enabled button that is installed
into our customer’s facility� When they press
the button, it connects directly into Prophet
21 solution�”1
Why go to such great lengths for an easy
button? Schron said the results were
significant and quick� “Since we’ve launched
the solution, we have been doubling the
amount of buttons we have in the field,
the amount of orders we are receiving, and
our sales volume every two months� The
openness of [Prophet 21 solution] and the
ability to connect instantly into our Epicor
system is what has made this solution come
full circle�” 1
Radwell International offers another example
of innovative inventory management
syncing with the ERP solution� Their unique
automated storage system uses fast-moving
robots to manage millions of new and used
industrial parts with ease� Using Swisslog’s
AutoStore solution, Radwell manages
50,000 stacked bins of small parts in a grid
system worked by 34 robots for picking�
All this is managed by Swisslog’s SyncQ
system, integrated with the warehouse
management system in their Epicor Prophet
21 ERP solution�2 The integration has been a
tremendous benefit to Radwell� Among other
efficiencies, Radwell employees say they have
increased performance in pick productivity by
400 percent�3
Finally—Think Ahead
Knowing there is a clear
upgrade path
To understand what the next 10 years will
bring for distribution, and what impact it
will have, look at the last 10 years and then
consider whether technology will continue
at that pace, or develop even faster (as many
believe)� Technology will provide information
to the worker at any time, on any device�
This information will be personalized and will
anticipate the needs and activities of every
organizational role, helping employees make
decisions on exceptions and automating
routine daily processes� An enterprise software
system will have to adapt to new business
and technology strategies that few of us
can accurately predict today� You need to
be sure that your company’s distribution
software solution will be able to grow with
the organization and adapt to changes in
the business, as well as continue to offer the
best in ERP functionality as the technology
continues to evolve�
To ensure the solution provider has a strategic
vision for distribution technology, ask these
questions of your vendor include:
X What does their technology roadmap look
like for your product?
X What percentage of development is
for new innovation versus bug fixes or
incremental improvements?
1 https://advancedmanufacturing�org/jergens-jis-division-honored-with-2018-epicor-customer-excellence-award/
2 http://www�dcvelocity�com/articles/20170829-22-million-skus-no-problem/
3 https://www�swisslog�com/en-us/warehouse-logistics-distribution-center-automation/case-studies-and-resources/case-studies/2017/11/radwell
X What’s their cadence for releasing
new versions of the software you’re
considering? Do they release new
versions of the software every other
year, every year, every six months?
(Use their previous two years’ track
record as proof�)
X What is their vision for business
mobility?
X Are you able to access business
information in environments outside
of a huge ERP?
X Do they have business applications
that run on mobile devices?
X How malleable is the software to
your users’ specific needs?
X Are they in the cloud? If not, do they
have a vision for moving applications
to the cloud?
X How are they addressing the
changes brought on by IoT? Artificial
intelligence (AI)?
These are just a few questions that must
be part of the discussion if you want to
ensure a system will meet your needs for
the long term�
Summary
Implementing or replacing your ERP system
is no light matter� It may appear to be a
difficult and painful process, but, if executed
correctly, it can open business opportunities
and make your life easier� The cornerstone of
this effort is finding the partner that can show
you how to make this transition work—a
partner with clear and demonstrable history
of helping other distributors successfully reach
their goals�
Your enterprise software provider must be
part of your vision� They must have faced
these challenges many times in their history
and learned how to help distributors adopt
new technologies� The future of your business
depends on whether they have successfully
made the leap from one technology curve to
the next, and continue to innovate and deliver
to help companies like yours lead the change�
Selecting the right software provider for your
business can be a daunting task for those who
lack experience in this process� The last thing
any person or company wants is to invest in
the wrong technology and choose the wrong
partnership� Arm yourself with information
and references from similar businesses to
ensure the choice you make is one that will
help your business compete and grow well
into the future�
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 reflect Epicor’s viewpoints and are for informational purposes only and are subject to change without notice� Epicor Software Corporation makes no guarantee, representa-
tions, 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, merchant-
ability, 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, September 2018� The testimonials and quotes of specific end users reflect their viewpoints and experiences� Each users actual results 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, Eclipse, and Prophet
21 are registered trademarks or trademarks of Epicor Software Corporation in the United States, certain other countries and/or the EU� All other trademarks mentioned are the property of their respective
owners� Copyright © 2018 Epicor Software Corporation� All rights reserved�
