# Best Distribution Software - 2026 Reviews & Pricing

> Find the best Distribution Software for your organization. Compare top Distribution Software systems with customer reviews, pricing, and free demos.

Source: https://www.softwareadvice.com/category/4730-distribution

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# Best Distribution Software of 2026

Updated June 10, 2026

On this page

1.  FrontRunners
2.  Popular Comparisons
3.  Buyers Guide
4.  Related Software

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227 results

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Showing 1 - 25 of 227 products

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-   201-500
    
-   501-1000
    
-   1000+
    

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**Recommendations**: Sorts listings by the number of recommendations our advisors have made over the past 30 days. Our advisors assess buyers’ needs for free and only recommend products that meet buyers’ needs. Vendors pay Software Advice for these referrals.  
  
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**Alphabetically (A-Z)**: Sorts listings by product name from A to Z.

[NetSuite](https://www.softwareadvice.com/accounting/netsuite-financials-accounting-software-profile/)

NetSuite is an AI-powered cloud-based business management suite that incorporates ERP, financial management, CRM and eCommerce f...[Read more about NetSuite](https://www.softwareadvice.com/accounting/netsuite-financials-accounting-software-profile/)

**4.2**

([2044 reviews](https://www.softwareadvice.com/accounting/netsuite-financials-accounting-software-profile/reviews/))

**41**

recommendations

Free trial

Free version

Integrations

Integrations

Salesforce Sales Cloud

Docusign

+18 more

+17 more

+16 more

NetSuite's Best Rated Features

4.75Check Writing

See All

NetSuite's Worst Rated Features

2.71Dashboard

See All

[Focus X](https://www.softwareadvice.com/product/3600-focus/)

Focus X is an all-inclusive enterprise resource planning (ERP) system that helps you connect every aspect of your business opera...[Read more about Focus X](https://www.softwareadvice.com/product/3600-focus/)

**3.8**

([119 reviews](https://www.softwareadvice.com/product/3600-focus/reviews/))

**24**

recommendations

Free trial

Free version

Focus X's Best Rated Features

4.50Approval Process Control

See All

Focus X's Worst Rated Features

3.17Purchase Order Management

See All

[ERP One](https://www.softwareadvice.com/erp/k8-profile/)

Wherever you are on your digital journey, growing the profits of your business can be made easier with the right platform to kee...[Read more about ERP One](https://www.softwareadvice.com/erp/k8-profile/)

**3.0**

([1 reviews](https://www.softwareadvice.com/erp/k8-profile/#reviews))

**20**

recommendations

Free trial

Free version

[Cin7 Omni](https://www.softwareadvice.com/retail/cin7-profile/)

Cin7 Omni is a highly configurable inventory management and order management solution with built-in EDI and integrations to all ...[Read more about Cin7 Omni](https://www.softwareadvice.com/retail/cin7-profile/)

**4.3**

([601 reviews](https://www.softwareadvice.com/retail/cin7-profile/reviews/))

**19**

recommendations

Free trial

Free version

Integrations

Integrations

Google Drive

PayPal

+60 more

+59 more

+58 more

Cin7 Omni's Best Rated Features

4.83Order Tracking

See All

Cin7 Omni's Worst Rated Features

2.67Mobile Access

See All

[Epicor Prophet 21](https://www.softwareadvice.com/product/521541-Epicor-Prophet-21/)

Prophet 21 gives distributors real-time inventory insights to always know what's in stock and available to promise customers. Th...[Read more about Epicor Prophet 21](https://www.softwareadvice.com/product/521541-Epicor-Prophet-21/)

**3.9**

([87 reviews](https://www.softwareadvice.com/product/521541-Epicor-Prophet-21/reviews/))

**17**

recommendations

Free trial

Free version

Integrations

Integrations

monday.com

Squarespace

+12 more

+11 more

+10 more

Epicor Prophet 21's Best Rated Features

4.14Inventory Management

See All

Epicor Prophet 21's Worst Rated Features

4.14Inventory Management

See All

[Kechie](https://www.softwareadvice.com/inventory-management/kechie-profile/)

Kechie Distribution Management efficiently manages internal and external resources. Suited for growing businesses, the managemen...[Read more about Kechie](https://www.softwareadvice.com/inventory-management/kechie-profile/)

**4.7**

([48 reviews](https://www.softwareadvice.com/inventory-management/kechie-profile/reviews/))

**16**

recommendations

Free trial

Free version

Integrations

Integrations

Salesforce Sales Cloud

Shopify

+12 more

+11 more

+10 more

Kechie's Best Rated Features

5.0Receiving

See All

Kechie's Worst Rated Features

4.17Point of Sale (POS)

See All

[SAP Business One](https://www.softwareadvice.com/accounting/sap-business-one-profile/)

SAP Business One is a modular and integrated enterprise resource planning (ERP) solution. This platform integrates financials, C...[Read more about SAP Business One](https://www.softwareadvice.com/accounting/sap-business-one-profile/)

**4.3**

([344 reviews](https://www.softwareadvice.com/accounting/sap-business-one-profile/reviews/))

**16**

recommendations

Free trial

Free version

Integrations

Integrations

Microsoft Excel

Mailchimp

+7 more

+6 more

+5 more

SAP Business One's Best Rated Features

4.86Scheduling

See All

SAP Business One's Worst Rated Features

3.33Purchasing & Receiving

See All

[Versa Cloud ERP](https://www.softwareadvice.com/accounting/versaccounts-profile/)

Versa is Modern all-in-one Cloud ERP software created for fast growing inventory heavy manufacturing, distribution, and e-commer...[Read more about Versa Cloud ERP](https://www.softwareadvice.com/accounting/versaccounts-profile/)

**4.8**

([22 reviews](https://www.softwareadvice.com/accounting/versaccounts-profile/reviews/))

**14**

recommendations

Free trial

Free version

Integrations

Integrations

PayPal

Salesforce Sales Cloud

+9 more

+8 more

+7 more

[Dynamics 365 Business Central](https://www.softwareadvice.com/accounting/dynamics-365-business-central-profile/)

Microsoft Dynamics 365 Business Central is a cloud-based enterprise resource planning (ERP) software solution designed for midsi...[Read more about Dynamics 365 Business Central](https://www.softwareadvice.com/accounting/dynamics-365-business-central-profile/)

**4.1**

([205 reviews](https://www.softwareadvice.com/accounting/dynamics-365-business-central-profile/reviews/))

**14**

recommendations

Free trial

Free version

Integrations

Integrations

PayPal

Microsoft Excel

+68 more

+67 more

+66 more

Dynamics 365 Business Central's Best Rated Features

4.73Order Management

See All

Dynamics 365 Business Central's Worst Rated Features

3.85Bank Reconciliation

See All

[AcctVantage ERP](https://www.softwareadvice.com/manufacturing/acctvantage-profile/)

AcctVantage ERP is a distribution and manufacturing software solution. It helps businesses streamline their operations. The soft...[Read more about AcctVantage ERP](https://www.softwareadvice.com/manufacturing/acctvantage-profile/)

**4.7**

([9 reviews](https://www.softwareadvice.com/manufacturing/acctvantage-profile/#reviews))

**11**

recommendations

Free trial

Free version

Integrations

Integrations

Shopify

WooCommerce

+5 more

+4 more

+3 more

[Acumatica Cloud ERP](https://www.softwareadvice.com/manufacturing/acumatica-manufacturing-profile/)

Acumatica Cloud ERP is a comprehensive business management system. It caters to a variety of industries, such as finance, manufa...[Read more about Acumatica Cloud ERP](https://www.softwareadvice.com/manufacturing/acumatica-manufacturing-profile/)

**4.4**

([243 reviews](https://www.softwareadvice.com/manufacturing/acumatica-manufacturing-profile/reviews/))

**9**

recommendations

Free trial

Free version

Integrations

Integrations

Dropbox Business

Microsoft Excel

+35 more

+34 more

+33 more

Acumatica Cloud ERP's Best Rated Features

4.67Business Intelligence

See All

Acumatica Cloud ERP's Worst Rated Features

3.57AI Copilot

See All

[DigitBridge](https://www.softwareadvice.com/distribution/digitbridge-profile/)

DigitBridge is a digital commerce operations system designed specifically for small-to-medium sized businesses (SMBs). DigitBr...[Read more about DigitBridge](https://www.softwareadvice.com/distribution/digitbridge-profile/)

**5.0**

([2 reviews](https://www.softwareadvice.com/distribution/digitbridge-profile/#reviews))

**9**

recommendations

Free trial

Free version

Integrations

Integrations

Instagram

Squarespace

+12 more

+11 more

+10 more

[SAP S/4HANA Cloud](https://www.softwareadvice.com/accounting/sap-s-4hana-cloud-profile/)

SAP S/4HANA Cloud is a cloud-based and on-premise enterprise resource planning (ERP) solution. It is suitable for small, midsize...[Read more about SAP S/4HANA Cloud](https://www.softwareadvice.com/accounting/sap-s-4hana-cloud-profile/)

**4.3**

([358 reviews](https://www.softwareadvice.com/accounting/sap-s-4hana-cloud-profile/reviews/))

**9**

recommendations

Free trial

Free version

Integrations

Integrations

SAP Concur

SAP SuccessFactors HCM

+15 more

+14 more

+13 more

SAP S/4HANA Cloud's Best Rated Features

4.75Supply Chain Management

See All

SAP S/4HANA Cloud's Worst Rated Features

4.14Audit Trail

See All

[Fidelio ERP](https://www.softwareadvice.com/product/476184-Fidelio/)

Fidelio ERP is a cloud-based business management platform built for small and midsize manufacturers, wholesalers, distributors, ...[Read more about Fidelio ERP](https://www.softwareadvice.com/product/476184-Fidelio/)

No reviews yet

**9**

recommendations

Free trial

Free version

[Accolent ERP](https://www.softwareadvice.com/distribution/accolent-erp-profile/)

Accolent ERP is an enterprise resource planning (ERP) and enterprise resource management (ERM) software suite designed for busin...[Read more about Accolent ERP](https://www.softwareadvice.com/distribution/accolent-erp-profile/)

**4.5**

([11 reviews](https://www.softwareadvice.com/distribution/accolent-erp-profile/reviews/))

**6**

recommendations

Free trial

Free version

Integrations

Integrations

Microsoft Outlook

+0 more

+0 more

+0 more

[Striven](https://www.softwareadvice.com/project-management/striven-profile/)

Striven is a cloud-based, all-in-one business management ERP platform built for small and midsize companies tired of duct-taping...[Read more about Striven](https://www.softwareadvice.com/project-management/striven-profile/)

**4.8**

([129 reviews](https://www.softwareadvice.com/project-management/striven-profile/reviews/))

**5**

recommendations

Free trial

Free version

Integrations

Integrations

Gmail

Shopify

+13 more

+12 more

+11 more

Striven's Best Rated Features

5.0Order Management

See All

Striven's Worst Rated Features

4.20Sales Pipeline Management

See All

[Infor Distribution SX.e](https://www.softwareadvice.com/inventory-management/infor-distribution-profile/)

Infor Distribution SX.e is an easy-to-use, modern ERP solution purpose-built for the highly specialized, core processes of distr...[Read more about Infor Distribution SX.e](https://www.softwareadvice.com/inventory-management/infor-distribution-profile/)

**4.5**

([13 reviews](https://www.softwareadvice.com/inventory-management/infor-distribution-profile/#reviews))

**4**

recommendations

Free trial

Free version

Integrations

Integrations

Infor CRM

Infor Human Resources

+1 more

+0 more

+0 more

[Entree](https://www.softwareadvice.com/distribution/necs-entree-profile/)

NECS entrée is a comprehensive solution designed explicitly for food distributors and the unique challenges they face. entrée i...[Read more about Entree](https://www.softwareadvice.com/distribution/necs-entree-profile/)

**4.5**

([13 reviews](https://www.softwareadvice.com/distribution/necs-entree-profile/reviews/))

**3**

recommendations

Free trial

Free version

Integrations

Integrations

QuickBooks Enterprise

Cut+Dry

+2 more

+1 more

+0 more

[S2K Enterprise](https://www.softwareadvice.com/manufacturing/s2k-for-manufacturing-profile/)

VAI provides flexible, fully integrated business software solutions that give companies of all sizes a true competitive advantag...[Read more about S2K Enterprise](https://www.softwareadvice.com/manufacturing/s2k-for-manufacturing-profile/)

**4.5**

([24 reviews](https://www.softwareadvice.com/manufacturing/s2k-for-manufacturing-profile/reviews/))

**3**

recommendations

Free trial

Free version

S2K Enterprise's Best Rated Features

4.60Inventory Management

See All

S2K Enterprise's Worst Rated Features

3.57Financial Management

See All

[Infor M3](https://www.softwareadvice.com/manufacturing/infor-m3-profile/)

Infor M3 is a cloud-based ERP solution for global manufacturers and distributors with complex value chains. It offers analytics ...[Read more about Infor M3](https://www.softwareadvice.com/manufacturing/infor-m3-profile/)

**4.3**

([38 reviews](https://www.softwareadvice.com/manufacturing/infor-m3-profile/reviews/))

**3**

recommendations

Free trial

Free version

[eTurns](https://www.softwareadvice.com/inventory-management/eturns-profile/)

eTurns TrackStock is a modern VMI app distributors can use to replenish their customers' stockroom and truck inventory in an opt...[Read more about eTurns](https://www.softwareadvice.com/inventory-management/eturns-profile/)

**4.5**

([80 reviews](https://www.softwareadvice.com/inventory-management/eturns-profile/reviews/))

**2**

recommendations

Free trial

Free version

Integrations

Integrations

Epicor Eclipse

+0 more

+0 more

+0 more

eTurns's Best Rated Features

4.77Order Management

See All

eTurns's Worst Rated Features

4.0Purchase Order Management

See All

[AccountMate](https://www.softwareadvice.com/accounting/accountmate-profile/)

AccountMate is a hybrid accounting solution that caters to small and midsize businesses and offers them tools and functionalitie...[Read more about AccountMate](https://www.softwareadvice.com/accounting/accountmate-profile/)

**4.3**

([25 reviews](https://www.softwareadvice.com/accounting/accountmate-profile/reviews/))

**2**

recommendations

Free trial

Free version

Integrations

Integrations

Shopify

HubSpot CRM

+1 more

+0 more

+0 more

[Sage X3](https://www.softwareadvice.com/manufacturing/sage-x3-profile/)

Sage X3 is a powerful ERP software solution designed for midsized national and global manufacturers, distributors, and after-sal...[Read more about Sage X3](https://www.softwareadvice.com/manufacturing/sage-x3-profile/)

**4.3**

([118 reviews](https://www.softwareadvice.com/manufacturing/sage-x3-profile/reviews/))

**2**

recommendations

Free trial

Free version

Integrations

Integrations

SPS Commerce

Boomi

+19 more

+18 more

+17 more

Sage X3's Best Rated Features

4.60Income & Balance Sheet

See All

Sage X3's Worst Rated Features

2.85Document Management

See All

[Epicor BisTrack](https://www.softwareadvice.com/scm/epicor-bistrack-profile/)

Epicor for Building Supply is a complete solution that offers all the functionality needed to process simple to complex transact...[Read more about Epicor BisTrack](https://www.softwareadvice.com/scm/epicor-bistrack-profile/)

**3.6**

([14 reviews](https://www.softwareadvice.com/scm/epicor-bistrack-profile/reviews/))

**2**

recommendations

Free trial

Free version

[Digit](https://www.softwareadvice.com/product/449762-Digit/)

Digit is a cloud-based manufacturing and inventory management platform that helps businesses of all sizes manage purchase orders...[Read more about Digit](https://www.softwareadvice.com/product/449762-Digit/)

**4.9**

([18 reviews](https://www.softwareadvice.com/product/449762-Digit/#reviews))

**1**

recommendations

Free trial

Free version

Integrations

Integrations

QuickBooks Enterprise

QuickBooks Online

+5 more

+4 more

+3 more

Digit's Best Rated Features

5.0Workflow Management

See All

Digit's Worst Rated Features

4.67Work Order Management

See All

1

[2](https://www.softwareadvice.com/category/4730-distribution/?page=2)[3](https://www.softwareadvice.com/category/4730-distribution/?page=3)[4](https://www.softwareadvice.com/category/4730-distribution/?page=4)[5](https://www.softwareadvice.com/category/4730-distribution/?page=5)

...

[10](https://www.softwareadvice.com/category/4730-distribution/?page=10)

## Popular Comparisons

[

Fishbowl vs NetSuite

](https://www.softwareadvice.com/manufacturing/fishbowl-inventory-manufacturing-profile/vs/netsuite-financials-accounting-software/)[

SAP Business One vs SAP S/4HANA Cloud

](https://www.softwareadvice.com/accounting/sap-business-one-profile/vs/sap-s-4hana-cloud/)[

Cin7 Core vs Unleashed

](https://www.softwareadvice.com/scm/dear-systems-profile/vs/unleashed/)[

Acumatica Cloud ERP vs MRPeasy

](https://www.softwareadvice.com/manufacturing/acumatica-manufacturing-profile/vs/mrpeasy/)

## Your Guide to Top Distribution Software, August 2025

Software Advice uses reviews from real software users to highlight the top-rated Distribution products in North America.

[Learn how products are chosen](https://www.softwareadvice.com/legal-page/frontrunners-methodology/)

#### Explore FrontRunners

-   [Acumatica Cloud ERP](https://www.softwareadvice.com/manufacturing/acumatica-manufacturing-profile/)
-   [B2B Wave](https://www.softwareadvice.com/distribution/b2b-wave-profile/)
-   [Datacor ERP](https://www.softwareadvice.com/inventory-management/chempax-profile/)
-   [Fishbowl](https://www.softwareadvice.com/manufacturing/fishbowl-inventory-manufacturing-profile/)
-   [MRPeasy](https://www.softwareadvice.com/manufacturing/mrpeasy-profile/)
-   [NetSuite](https://www.softwareadvice.com/accounting/netsuite-financials-accounting-software-profile/)
-   [Sage 100](https://www.softwareadvice.com/distribution/sage-100cloud-profile/)
-   [SAP Business ByDesign](https://www.softwareadvice.com/erp/sap-business-bydesign-profile/)
-   [SAP Business One](https://www.softwareadvice.com/accounting/sap-business-one-profile/)
-   [SKULabs](https://www.softwareadvice.com/inventory-management/sku-labs-profile/)
-   [STORIS](https://www.softwareadvice.com/retail/storis-profile/)

“Usability” includes user ratings for Functionality and Ease of Use.

“Customer Satisfaction” includes user ratings for Customer Support, Likelihood to Recommend and Value for Money.

Reviews analysis period: The reviews analysis period spans two years and ends the 15th of the month prior to publication.

Distributors sit in the middle of the supply chain, providing a connection between manufacturers and, ultimately, consumers. Distribution software can help manage operations by tracking products and terms for multiple suppliers and multiple customers, including such diverse things as economic order quantities and cooperative advertising dollars, for both suppliers and customers.

There are nearly 100 wholesale distributor software [vendors](https://www.softwareadvice.com/erp/) on the market. We wrote this buyer’s guide to help buyers better understand what to look for when assessing distribution software reviews in this market.

Here’s what we’ll cover:

[What Is Distribution Software?](#WhatIsDistributionSoftware)

[Common Features of Distribution Software](#CommonFeaturesofDistributionSoftware)

[What Type of Buyer Are You?](#WhatTypeofBuyerAreYou)

[Benefits and Potential Issues](#BenefitsandPotentialIssues)

[Market Trends to Understand](#MarketTrendstoUnderstand)

## What Is Distribution Software?

Common functions of distribution software include:

-   Operations management
    
-   Accounting
    
-   Inventory management
    
-   Customer relationship management
    
-   Order management
    
-   Purchasing
    
-   Warehouse management
    
-   Front counter operations
    

_Sales order in Fishbowl_

While small operations can use generic accounting and inventory management systems, distributors and distribution centers (DCs) require the special functions available in distribution management systems.

## Common Features of Distribution Software

**Front counter operations**

Automates the point of sale if the distributor does pick up sales for wholesale or even retail. Functions include order processing, tax calculations and receipt printing. Interfaces with inventory and customer relationship systems. Example vendors include Microsoft, Counterpro and Activant.

**Customer management**

Used to maintain customer contact information, preferences, reorder points and credit information. Functions include generating mailing lists, maintaining sales history and tracking co-op sales. Example vendors include SAP, Oracle and SugarCRM.

**Order management**

Prepares bids, prepares quotes and processes customers orders. Functions include quote to order, preparing shipping information, creating return materials authorizations. Example vendors include SAP, NetSuite and Microsoft.

**Purchasing & procurement**

Used to order inventory and track discounts offered. Functions include preparing purchase orders, tracking economic order quantities and preparing receiving reports. Example vendors include Gilliani, Geneva and Microsoft.

Inventory management

Used to count, track, receive and locate parts and materials. Functions include tracking assets, processing advance notifications, tracking inventory value and tracking reorder points. Example vendors include Sage, Epicor and Oracle.

**Warehouse management**

Tracks the quantity and stock of inventory items within the warehouse. Warehouse distribution management functions include slotting analysis, preparing pick information and location tracking. Examples vendors include Royal4, S2K, HighJump and Geneva.

Distribution accounting

Automates the general ledger, accounts receivable, accounts payable and other accounting functions with special emphasis on the unique requirements of distributors. Functions include keeping ledger balances, tracking client debt and calculating available discounts. Example vendors include SAP, Oracle, Microsoft and Intuit.

**Demand management**

Used to adjust inventory levels according to fluctuations in the demand forecast to ensure that supply coordinates with demand. It will include functionality to track customer delivery schedules, manage customer rebates and process order returns. Example vendors include SAP, Epicor and NetSuite Distribution.

[Electronic data interchange (EDI)](https://www.softwareadvice.com/distribution/edi-comparison/)

Used by distribution companies to transfer or trade documents from computer to computer. Mostly used by businesses needing to share data between outside organizations. Example vendors include SAP, Epicor and Microsoft.

## What Type of Buyer Are You?

Before evaluating distributor software, you’ll need to determine what type of buyer you are. Over 90 percent of buyers fall into one of these four groups:

**Full-suite buyer.** These buyers value the seamless integration of data and processes that comes from having one system for all functions. For example, a full-suite system for accounting, customer relationship management and inventory management can turn quotes automatically into orders and then generate picking lists, shipping labels and invoices. These buyers favor complete distribution management software suites like Oracle, SAP, Sage ERP or Microsoft Dynamics AX.

**Multiple warehouse operations buyer.** These buyers run multiple facilities and need to track and balance inventories over a geographical area. The buyers require software that can balance inventory between warehouses while strategically placing it closest to the probable customers. The system must give both overall enterprise data as well as breaking down each operation. It must track customer and vendor accounts, and make sure customer accounts are consolidated even if the customer orders from different locations.

**Departmental buyer.** These buyers are specialists for firms that have an internal distribution network. They may only sell to their own outlets, but they must contend with multiple suppliers, inventory issues, competing corporate customers and transportation decisions similar to commercial distributors use. As such, they should evaluate software for wholesale distribution companies that can support multiple departments.  

**Small business buyer.** These buyers may work for distributors or wholesalers or may have a distribution component as part of their business. They usually have smaller numbers of clients, suppliers and inventory and may include some assembly or production components but still face the same basic issues as large-scale distributors. These buyers are often using paper-based systems or general wholesale distribution software small business distributors typically use like Intuit or Peachtree.

## Benefits and Potential Issues

As distributors feel pressures from increasing demands to restock as the economy recovers and to reassert value in the supply chain, they need concrete benefits to justify system expenses.

**Lower total logistics cost.** Since distribution management systems let managers get a more realistic view of inventory costs, they can take steps to increase the overall costs. For example, it might be more cost effective to buy a slightly more expensive product that has better packaging that takes substantially less shelf space.

**Increased profitability.** Combining information from TLC analysis and slotting analysis, objects that are picked together often, can be shelved next to each other. This reduces the overall labor involved in picking, although the costs for each individual item is constant.

**Improved customer service.** In addition to fulfilling orders more quickly and accurately, inventory systems work with customer relationship management and order management systems to project customer’s needs, notifying representatives to contact customers with suggested orders and recommending related goods. Ideally, your distribution business software interfaces directly with the customer’s order system allowing orders to be placed and processed automatically.

**Improved vendor relations**_._ Distributors can use the information and analysis from the inventory system to become better customers to their suppliers by analyzing trends and placing orders that do not have to change in the middle of fulfillment. Better orders, improved receiving processes and integration with supplier systems all work to make vendor transaction run smoother.

**Reduced compliance costs.** Many distributors are subject to strict governmental and insurance regulations because of the materials they carry in inventory. Distribution management software can generate much of the required compliance documentation as a consequence of ordering and receiving materials and equipment.

The chief issue with wholesale distribution software systems is lag time. Even when the various modules and components share a database, which is the norm now, there is a time lag between when events occur and when they are recorded. This can lead to improper decisions. Most systems are written with the assumption that changes are made and transmitted instantly; reality is different.

For example, when a customer places an order, ideally the value of that order should be immediately moved from current inventory and appear in accounts receivable. What really happens is that the order is entered, the inventory is tagged as “Allocated," the pick list is generated, the inventory is picked and packaged. If the shipment is free on board (FOB) origin, once the order is picked up, the items should be removed from inventory. The inventory system’s recorded location of the inventory at any given time has important tax and floor planning considerations, which can affect cash flow.

The other limitation is expense. Even basic warehouse distribution software systems use bar codes, mobile readers and a wireless network. More advanced systems require an extensive infrastructure that potentially requires every location on every shelf to have some form of hardware installed.

## Market Trends to Understand

In the age of on-demand, custom-built products; overnight shipping and Internet disintermediation, the distribution sector is under pressure to reestablish its value proposition and increase efficiency. One of the ways distributors can do this is by utilizing advanced features included in software for distribution business needs. 

**Total logistics cost modeling.** Traditionally, inventory was costed by adding its unit cost to its shipping cost. Total logistics cost (TLC) looks at all expenses related to acquiring, transporting and storing inventory. This includes things such as labor costs, the amount of shelf space required and even allocated overhead costs. For example, if two items cost the same and weigh the same, but one is much larger than the other, the larger item will require more storage space and will have a higher TLC.

**Pick to light technology.** Pick to light (PTL) is a paperless picking technology. Instead of printing a pick list, arrays of lights on the ceiling and shelving indicate the location of the items to be picked. Digital displays on the shelf give the quantity to pick. PTL is incorporated into warehouse management or inventory management software and can reduce operations costs in the warehouse.

**Intelligent inventory tagging.** The use of one-dimensional bar coding for equipment and inventory tagging is well established in manufacturing systems. Recent systems use radio frequency identification (RFID), which can be read remotely to check inventory levels and to confirm equipment availability. Other systems use two-dimensional bar codes which contain descriptive information in addition to an identifier like a part number.

**Advanced slotting analysis.** Advanced slotting analysis uses historical inventory information, picking trends and warehouse shelving layout information to determine the most cost-effective placement of inventory in the warehouse. Slotting analysis can also ensure that dangerous items are not stored together, for example, ammonia next to chlorine, which could violate government regulations, insurance restrictions and common sense.

### Related Distribution Software

-   [Demand Planning Software](https://www.softwareadvice.com/scm/demand-planning-software-comparison/)
-   [Forestry Software](https://www.softwareadvice.com/forestry/)
-   [Procurement Software](https://www.softwareadvice.com/scm/procurement-software-comparison/)
-   [Purchasing Software](https://www.softwareadvice.com/scm/purchase-order-comparison/)
-   [Sourcing Software](https://www.softwareadvice.com/scm/strategic-sourcing-software-comparison/)
-   [Spend Management Software](https://www.softwareadvice.com/scm/spend-management-comparison/)
-   [Third Party Logistics (3PL) Software](https://www.softwareadvice.com/scm/third-party-logistics-3pl-software-comparison/)
-   [Vendor Management Software](https://www.softwareadvice.com/scm/vendor-management-system-comparison/)