7 Must-Know ERP Trends for Distributors in 2024

Another year has flown by, and it's time to look ahead at what's in store for ERP software and enterprise technology in 2024. The ongoing digital transformation will be further fueled by IT trends, while global challenges like inflation, recession, and immigration continue to disrupt the supply chain.?

Organizations are adapting to new business management standards, emphasizing robust continuity and risk management. To keep up in this dynamic environment, companies are turning to ERP systems to streamline operations and meet strategic goals through rapid adaptation.

Top ERP Trends in 2024

Here are the most popular ERP trends that you must consider:

1. Rise in Cloud-Based ERP Deployments

Companies are shifting from on-premise to cloud-based ERP systems, with the cloud proving highly accessible for smaller businesses. This flexibility allows a choice between fully cloud-based or hybrid models, offering smaller companies advanced technologies through user-friendly apps and cross-platform capabilities.

2. Focus on Mobile-Friendly, Real-Time Access

Mobile ERP aligns with cloud-based ERP, providing businesses with anytime, anywhere access to business insights. This eliminates the dependence on in-house computers, offering real-time visibility and intelligent dashboards for better-informed decision-making.

3. Pressure to Adopt the Internet of Things (IoT)

The IoT, connecting physical objects through sensors and software, is gaining prominence for benefits such as improved asset management, accurate forecasting, enhanced cross-department communication, and real-time business intelligence. It contributes to a more personalized customer experience.

4. Popularity of Industry-Specific Solutions

ERP development companies now offer industry-specific solutions, enhancing efficiency and capabilities for various businesses. These solutions address specific business needs at a lower cost compared to extensive customization, attracting companies seeking best-in-class ERP functionality.

5. Artificial Intelligence and Machine Learning

ERP systems now integrate advanced technologies like AI and ML, providing more accurate data analytics. This integration accelerates goal achievement and transforms data into actionable insights for businesses.

6. Two-Tier ERP Model

The two-tier ERP trend allows businesses to run corporate and subsidiary operations simultaneously. While big enterprises use core ERP software for financials, smaller units adopt specialized solutions, reducing costs and offering flexibility to adapt to evolving business needs.

7. Integration of ERP with Other Technologies

Modern ERP adoption goes hand-in-hand with increased investments in technology integration. Businesses are aligning applications with technologies like IoT, enhancing core processes. For example, retailers integrate ERP with warehouse management systems for efficient order workflows, inventory updates, and payment recording in ecommerce.

Recommended reads: ERP Data Integration With Other Systems

Why Should Distributors Consider the ERP Trends

1. Talent Attraction and Retention

Distributors who fail to update their ERP systems may struggle to attract and retain new talent, especially as labor shortages persist. Upgrading to advanced software not only improves productivity but also enhances employee morale and job satisfaction, making it easier to overcome the challenges of the current job market.

2. Data Analytics for Competitive Edge

Accessible and actionable data will be a key driver for distributors. Leveraging advanced reporting tools outside core ERPs can provide valuable insights for critical business decisions.

Distributors who harness this data for decision-making will outperform competitors still grappling with legacy transactional processing systems, emphasizing the importance of a robust ERP to capture core data for analytical purposes.

3. Simplicity and Embracing Technology Trends

In 2024, simplicity has become a trend. The more automated and streamlined distributors' processes are, the more successful they'll be. Embracing emerging technologies, like artificial intelligence (AI), is very important.

Vendors integrating AI into their technology stacks offer cost-effective and operationally focused solutions. Distributors, being cost-conscious, should closely monitor AI developments to stay competitive and efficient in an evolving technological landscape.

Stay tuned for more insightful updates.