Cloud ERP in Wholesale and Distribution

A new report from Aberdeen Research examines the state of Cloud ERP adoption in the wholesale and distribution industries. It should come as no surprise to anyone paying attention that adoption is rapidly picking up steam. Wholesalers and distributors are by their very nature dispersed; their need for anywhere, anytime access to the latest data plays into one of the cloud’s biggest advantages.

Indeed, almost two-thirds of the companies surveyed cited the need for multiple locations to collaborate as a primary business driver of their decision to implement a cloud ERP system. And almost half of the companies that have implemented a cloud ERP system integrate their manufacturing and logistics processes.

wholesale distributionTellingly, the more recent the ERP implementation, the more likely the organization is to have selected an ERP system delivered as a service, rather than a traditional ERP system, whether implemented on-premises or hosted in the cloud. For companies with ERP systems between five and ten years old, only 1 out of 20 are SaaS-based. For companies whose systems are less than five years old, that figure jumps to 1 out of 3 – for two-year old systems, 1 out of 2. This certainly could be due to the rapid maturation of cloud ERP offerings, but it also speaks to the increasing comfort companies now have with regard to putting their mission-critical data onto the cloud.

Other indicators reveal a distinct advantage for wholesale and distribution organizations in several other key areas (as opposed to companies with on-premises systems). For example, organizations with Cloud ERP system are 59% more likely to have real-time visibility into the status of all their business processes, and nearly twice the improvement in profit margins over the past two years.

Really, the value of Cloud ERP can no longer be disputed.

You can get the full report here.

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