Choosing an ERP for credit-based distribution businesses

Ask any distributor what keeps them up at night and the answer is rarely sales. It is stock they cannot find and money they cannot collect. A good ERP is not an accounting add-on; it is the system that keeps inventory honest and credit under control.

1. Stock you can trust, in every godown

Look for real-time, multi-location inventory with batch, expiry and serial tracking. Sales orders should reserve stock the moment they are confirmed, so two salespeople never promise the same last carton.

2. Credit limits enforced by the system, not memory

Each customer needs a credit limit and payment terms that the system checks automatically. When a new order would breach the limit, it should be held for approval — with the customer's ageing visible right there.

3. A clean purchase cycle

Requisition, purchase order, goods receipt and supplier bill should link together so you can see what was ordered, what arrived, and what you owe — and spot short supplies before you pay for them.

4. Collections that run themselves

Automated reminders on WhatsApp, a daily list of overdue accounts for each salesperson, and payment recording in the field app shorten your cash cycle more than any discount scheme.

5. GST without the spreadsheet gymnastics

GST-compliant invoices, HSN summaries and exports your accountant can use directly remove a week of month-end pain.

6. A mobile app your field team will actually use

Order booking, live stock and credit status, and offline mode for patchy networks. If the app is slow, reps go back to WhatsApp and paper.

The bottom line

Judge an ERP by two numbers six months after go-live: inventory accuracy and days sales outstanding. Everything else is a feature list.