Delivering Omnichannel Experience in Distribution Industry with Infor ERP

Sep 30, 2024

Infor | 5 min READ

Numerous upstream and downstream supply chain shifts have reshaped the distribution industry. Manufacturers that commission distributors to move their goods to retailers and end-customers expect speed, agility, and precision. Likewise, B2B buyers like retailers and end-customers expect consistency and convenience from distributors.

These changes have exerted bilateral pressure on distribution businesses. Moreover, new entrants with digital-native operations have introduced further competition into a rapidly evolving industry. Yet, the sector remains lucrative, as it is expected to expand to $12,219 Bn by 2031.¹ Which distributors will be able to grab a share of this growing pie depends on how they pivot to the new rules of the game.

As of now, delivering seamless and consistent omnichannel experiences can win distributors big amidst heating competition. This article explores why omnichannel makes a strong case in the strategic playbook of the distribution industry, why most distributors are struggling to implement it, and how they can overcome those impediments.

Joher Aurangabadwala

Global Practice Director –

Infor

Birlasoft

The case for omnichannel experiences in distribution

Customers in B2B and B2C segments alike demand omnichannel experiences. But omnichannel doesn’t simply mean the ability to buy via e-commerce, brick-and-mortar, and hybrid means. Buyers expect distributors to be aware of their interactions across each channel, facilitating true omnichannel experiences from purchase to returns and post-sales service.

Omnichannel equals convenience in today’s digitally augmented world. Therefore, it is no secret that the omnichannel buyer is more loyal, spends more, and holds greater lifetime value for the business. So, why is it so difficult to deliver omnichannel experiences in the distribution industry?

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Why omnichannel gets tough in distribution?

Omnichannel experience delivery rests on digital systems that gel well with the rest of the technology stack and create coherent operational processes. However, a closer look at the typical distribution business reveals the following impediments to achieving true omnichannel:

#1. Data silos

Distribution businesses run on legacy ERPs that were not built to support omnichannel experiences. As a result, data pertinent to different channels, like e-commerce, physical stores, and warehouse/inventories, are trapped in different systems. Different ‘in-stock’ statuses for the same product on different channels are a classic symptom of this issue.

#2. Fragmented processes

Despite activating different channels, distributors struggle to unify the processes underlying these channels. For instance, order fulfillment processes may flow through a different system for online orders and items requested at the store. This opacity erodes the profit margins and leads to lost opportunities.

#3. Integration issues

Distributors employ various enterprise technology solutions, such as Warehouse Management Systems (WMS), ecom systems, and web apps, to offer BOPIS or click-to-pick experiences. When the ERP doesn’t integrate easily with these systems, these processes are orchestrated manually, resulting in errors, inconsistencies, and delays.

Lastly, global distributors face unique challenges while making effective decisions. For instance, fulfillment managers may find it difficult to identify the most profitable routes for fulfilling orders, as it becomes difficult to calculate exchange rates, duties, and other cost factors accurately. Moreover, limited visibility into customer behavior across channels leads to missed opportunities.

Building consistent omnichannel experiences with Infor ERP

Infor’s industry-specific ERP solutions offer a unique approach to enabling omnichannel experiences in the distribution industry with guaranteed success. Infor M3, along with its native enterprise automation capabilities, allows distribution businesses to implement well-synchronized, fast, and responsive processes to orchestrate consistent omnichannel experiences.

Here are some of the most essential capabilities of Infor M3, which enable distributors to overcome the most critical challenges of omnichannel orchestration:

Breaking the data silos with a Unified Data Model and MDM

The first step in activating omnichannel experiences is to unify all the data that drives distribution operations across channels. Infor M3 enables this with robust functionalities for master data management (MDM). Infor M3 MDM capabilities create a single source of truth for customer, product, and inventory data, bringing consistency to pricing, availability, and customer context across all channels. Moreover, unifying operational data under a unified data model ensures consistent information across various functions, thus eliminating confusion and the need for reconciliation.

Open APIs and prebuilt connectors to facilitate seamless integration

Distribution workflows cut across multiple systems like e-commerce, CRM, WMS, web apps, tracking solutions, and possibly legacy information systems. Infor M3 streamlines data exchange between these systems with prebuilt connectors for key enterprise application vendors and open APIs for custom applications. For instance, distributors can integrate their Magento and Shopify deployments with Infor M3 within minutes, thus cutting several days of development effort. Moreover, IT teams spend less time maintaining these integrations, whereas enterprise systems can talk to each other – therefore enabling continuity and context across end-to-end processes.

Building transparent and connected processes with Infor WMS and OMS

Infor M3’s built-in order management system (OMS) centralizes orders from all channels, including e-commerce frontends, in-store purchases, and EDI. This brings transparency into order processing, picking, and packing workflows. Moreover, Infor M3’s WMS brings real-time inventory visibility and streamlines order fulfillment for all channels, thus truly unifying the processes underlying omnichannel customer experiences. Thus, the fulfillment managers can make the most optimal decisions to fulfill orders that span currencies, borders, and distribution channels.

Achieving granular visibility with BI, analytics, and CloudSuite Distribution

Lastly, Infor M3 enables distributors to track what is most relevant to them. M3 ERP’s integrated BI tools offer visibility into real-time and historical insights into performance across all channels. Moreover, the Infor enterprise automation suite enables distributors to build decision support tools for fulfillment managers and inventory and warehouse managers. In addition, Infor CloudSuite Distribution provides industry-specific BI content and dashboards, which bring valuable insights into omnichannel performance. This ensures data-driven decision making at scale and enables cost efficiency at an organization-wide level.

Next steps

Omnichannel experiences are rapidly becoming the status quo in the distribution industry. Customer convenience is the key driver of this trend, and distributors can no longer ignore it. Infor M3 ERP offers a solution-oriented approach to activating true omnichannel, providing distributors with a proven path to unify the operations underpinning omnichannel experiences.

Nonetheless, transforming for omnichannel distribution requires digital systems designed to support a specific business's unique processes and operating models. An experienced and trusted technology partner like Birlasoft can help your distribution business make this transition with assured success. With our Infor M3 Centre of Excellence and M3 Development Factory Group, we can help you make this transition quickly and cost-effectively while nailing all the outcomes you envision. From solution design to data migration and managed services for Infor, we have you covered at each step.

Take your first step towards omnichannel distribution with Infor and Birlasoft today – write to us at contactus@birlasoft.com to get started.

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¹ https://www.kingsresearch.com/industrial-distribution-market-522