3 critical questions a distributor must ask an ERP vendor

The most recent generation of Dynamics AX and Dynamics 365 for Operations provide distribution companies with new opportunities to modernize operations and improve profitability.

Still, distribution CFOs must do their due diligence and ask a variety of critical business questions when evaluating any new ERP system, Dynamics AX and Dynamics 365 included. These questions should cover everything from how the system will connect silos of data providing end-to-end visibility across the supply chain to how sales and marketing can predict future customer behavior to offer creative pricing and promotion strategies.

We have narrowed the list of questions down to three essential capabilities. Specifically, how do Dynamics AX and Dynamics 365 for Operations support:

1. Trade agreement management
2. Order tracking and shipping optimization
3. Maintaining 360º visibility across the supply chain

For trade management, Dynamics AX supports creating the rules to define and manage pricing and rebate agreements out of the box. This means that quote-specific pricing can be calculated on the fly from Dynamics AX at the time of order entry. Users are not required to maintain a special price list outside of the system which is siloed, difficult to share and maintain. Also, driving trade management procedures in Dynamics AX means that finance users can use standard journal entries to accrue rebates saving time during period closing. Every distributor is unique in how it drives its pricing and rebate strategy. Sales and marketing people are always dreaming up innovative programs to test and deploy. Most of these agreements can be managed flexibly in Dynamics AX, but companies can also consider additional customizations, as needed.

Order tracking and shipping optimization are critical to distributors. Simply put, it is essential to be able to provide real-time ...