Your warehouse is humming, and orders are pouring in, but your systems and processes are a total mess!
If this sounds like your distribution business, don’t let it get you down. Teetering between success and chaos is more common than you think.
Distribution businesses everywhere struggle with disconnected software, inventory nightmares, and customer complaints about delayed orders. But our member stories are proof that the right ERP system will solve all these operations problems so your business can thrive.
With ten years of experience helping businesses find their perfect ERP match, I've seen firsthand what works and what doesn't. In this overview, I’ll take you through the top 4 distribution ERP solutions for 2025. By the end, you’ll know which fits your specific business needs.
- Why Distribution Companies Need Specialized ERP Software
- Acumatica - Best for Small to Midsized Businesses
- Epicor ERP - Best for Enterprise Manufacturing
- Odoo - Best Budget Option for Start-Up Distributors
- SAP S/4HANA - Best for Global Distribution Operations
- Key Capabilities Every Distribution ERP Solution Must Have
- How to Choose the Right Distribution ERP Software
Why Distribution Companies Need Specialized ERP Software
Distribution isn't just about moving boxes from point A to point B. It's a complex ecosystem based on inventory management, supplier relationships, customer demands, and tight margins. Basic business software isn’t built to handle this complexity.
Distribution companies face unique challenges that many ERP systems simply can't handle:
- Multi-location inventory tracking across warehouses and third-party logistics partners
- Complex pricing structures with volume discounts, customer-specific pricing, and seasonal adjustments
- Supplier management that goes beyond simple purchase orders to include vendor performance tracking and automated reordering
- Real-time visibility into stock levels, order status, and shipping updates
- Integration needs with eCommerce platforms, shipping carriers, and warehouse management systems
When your ERP doesn't understand these needs, you end up with workarounds, manual processes, and inefficiencies that eat into your profits.
Acumatica - Best for Small to Midsized Businesses
Acumatica Cloud ERP is known for its user-friendly design that encourages quick adoption. Their distribution edition is best suited to businesses generating between $5 and $100 million in annual revenue.
Key capabilities:
- Real-time inventory visibility across all locations
- Automated order fulfillment with integrated shipping carrier connections and barcode scanning
- Smart purchasing management that generates purchase orders based on actual demand and supplier performance
- Native integrations with many popular eCommerce apps
The Acumatica ERP system stands out for its ability to connect all the moving parts of a distribution business. The unique pricing model does not charge per-user licensing fees, which can be very appealing to growing businesses looking for stable pricing.
Best for: Small to midsized distribution companies looking for an affordable, powerful solution that's easy to implement and use.
Downside: Not as suitable for very large or multinational operations
Epicor ERP - Best for Enterprise Manufacturing
Some distribution companies don't just move products: they manufacture them too. If that sounds like your business and you have a sizable operation, Epicor ERP bridges the gap between enterprise manufacturing and distribution.
Key capabilities:
- Job scheduling and production management for value-added services
- Bill of materials management for kitted products and assemblies
- Quality control integration with lot tracking and traceability
- Advanced cost accounting that handles both bought and made products
Epicor does well at tracking products through multiple stages – from raw materials to finished goods to customer delivery.
Best for: Large manufacturers who also need distribution functionality.
Downside: May be too complex to learn and costly for smaller operations
Odoo - Best Budget Option for Start-Up Distributors
Not every distribution company needs enterprise-level complexity. If you're just starting up as a small distributor, Odoo delivers basic functionality at an affordable price.
Small distributor advantages:
- Modular pricing – pay only for what you actually use
- Easy setup that doesn't require months of implementation
- Strong inventory management with barcode scanning and automated reordering
- Integrated eCommerce if you sell direct to consumers
While Odoo might not have all the bells and whistles of other systems, it covers the basics well and won't overwhelm your team with unnecessary complexity.
Best for: Small distribution companies with straightforward operations and tight budgets.
Downside: May require more customization and support costs for growing businesses
SAP S/4HANA - Best for Global Distribution
Running a distribution business across multiple countries? SAP S/4HANA handles the complexity of international operations without making you jump through hoops.
Global distribution strengths:
- Multi-currency support with automatic exchange rate updates
- Local compliance features for different countries' tax and reporting requirements
- Advanced analytics that work across different business units and countries
- Robust supplier management for complex international supply chains
The system excels at giving you a unified view of your global operation while handling all the local requirements that can trip up other systems.
Best for: Enterprise distribution companies with international operations or complex compliance needs.
Downside: Costly and involves complex implementation
Key Capabilities Every Distribution ERP Must Have
Not all ERP systems are equally powerful, especially when it comes to distribution. Here's what you absolutely need:
Real-Time Inventory Management
Your ERP should give you instant visibility into stock levels across all locations. This means:
- Live inventory counts that update as soon as items move
- Automatic low-stock alerts before you run out
- Lot and serial number tracking for products that require it
- Cycle counting tools that help maintain accuracy
Advanced Order Management
Orders are the lifeblood of distribution, so your ERP system needs to handle them flawlessly:
- Automated order processing from receipt to shipment
- Backorder management that keeps customers informed
- Priority order handling for rush jobs
- Customer-specific pricing and terms
Integrated Financial Reporting
Distribution operates on thin margins, so you need tight financial control:
- Real-time profitability analysis by customer, product, or territory
- Cash flow management tools
- Automated invoice generation tied to shipments
- Cost accounting that tracks all expenses accurately
Supplier Relationship Management
Your suppliers make or break your business, so manage them well:
- Vendor performance tracking with delivery and quality metrics
- Automated purchase order generation based on demand
- Contract management for negotiated pricing and terms
- Drop-ship capabilities for direct customer deliveries
How to Choose the Right Distribution ERP Software
Experienced ERP users will tell you that picking the wrong ERP system will be painful, as it eventually costs you vast amounts of money and time. Here's how to avoid that mistake:
Start With Your Current Pain Points
What's actually dysfunctional in your business right now? Common issues include:
- Orders getting lost or delayed
- Inventory counts that are never right
- Customer service spending all day tracking down orders
- Financial reports that take forever to produce
Your new ERP system should directly address these problems, not just add more functions you'll never use.
Consider Your Growth Plans
Where will your business be in 3-5 years? An ERP platform that barely handles your current volume won't survive your growth. Look for systems that can:
- Add new warehouses or locations easily
- Handle increased transaction volume
- Support new product lines or services
- Integrate with additional business systems
Don't Forget About Your Team
The fanciest ERP solution in the world won't help if your team can't or won't use it. Consider:
- Training requirements – how long before people are productive?
- Interface design – is it intuitive or confusing?
- Change management – how much disruption will implementation cause?
- Support availability – what happens when things go wrong?
Budget for the Total Technology Cost
ERP pricing can be complicated. If you choose an ERP partner with pricing guarantees, a stable monthly subscription fee, or no upfront implementation cost, your budget will be more predictable. If an ERP partner does not provide these options as part of an all-inclusive price, you’ll need to factor in:
- Implementation costs including data migration and training
- Ongoing support and maintenance fees
- Customization expenses for unique business needs
- Integration costs with existing systems
Make sure that your ERP partner is completely transparent about pricing and that you understand how your pricing may rise in the future. Many businesses are caught unaware by an initial ERP solution price that seems low, but then rises sharply every year.
Which ERP Software Fits Your Distribution Business?
Distribution-focused ERP systems do more than manage inventory and process orders. They transform how your entire business operates.
We let you see the evidence in person, with your own data. That’s why Stellar One offers a Risk-Free Trial of a top distribution-focused ERP solution, Acumatica. We’re an Acumatica Gold-Certified Partner, which means our team has achieved the highest level of expertise.
No sales pressure, no long-term commitment – just a chance to experience what your business could become. And we will also be frank with you about whether Acumatica is the right fit for your needs.
See Stellar One’s pricing for the distribution edition of Acumatica Cloud ERP.