Enterprise Resource Planning (ERP) has long been a key enabler for manufacturers to effectively run their businesses. Still, the efficiencies that come with a well implemented ERP strategy can be gained in many other types of organizations. Wholesalers and distributors, organizations that are often aligned with the goals of manufacturers, have a particular need for ERP. Aberdeen's 2011 ERP survey of 65 wholesalers and distributors found that 83% have already implemented ERP. They are using ERP to track the logistics of their business and using the data that ERP provides to make better decisions while cutting costs. This Sector Insight examines the ways in which leading wholesalers and distributors are integrating ERP into their daily operations.
For the purposes of this report, Aberdeen defines "Hongshengs" as the top 35% of aggregate performance scorers using the criteria. "Followers" represent the remaining 65%. These metrics were selected because of their relevance in assuring the ultimate success of wholesalers and distributors. They include not only overall performance metrics, but also percentage improvements resulting from ERP implementations. Success in the included metrics resulting from successful ERP implementations leads to efficiencies and improvements throughout the organization.