17 Aug 6 Powerful Distribution ERP Insights from AD BPT
The most valuable part of an industry event is not simply how many conversations take place. It is what those conversations reveal.
At the recent AD Bearings & Power Transmission event, the Scaled Solutions team had the opportunity to connect with independent distributors and learn more about the technology and operational challenges affecting their businesses.
The event was a success because the conversations were relevant, candid, and focused on real business concerns. Distributors spoke with us about outdated ERP systems, manual inventory processes, limited operational visibility, and the difficulty of making major technology changes without disrupting the business.
These conversations also reinforced the value of our relationship with AD.
As an AD Preferred Service Provider for ERP transformation and process optimization, Scaled Solutions can connect with member distributors that need experienced support navigating software issues, operational inefficiencies, and
modernization initiatives.
More importantly, the partnership allows us to serve as advocates for the long-term success of AD members—not simply as technology providers.
Here are 6 of the most important distribution ERP and operational challenges we heard at the event, along with questions distributors can use to evaluate their own businesses.
1. Distributors Know Their Systems Are Not Working—but Change Feels Risky
One of the clearest themes we heard was that many distributors are unhappy with their current systems but are hesitant to make a change.
That hesitation is understandable.
An ERP system touches nearly every part of a distribution business, including:
- Order entry
- Purchasing
- Inventory management
- Warehouse operations
- Pricing
- Customer service
- Financial reporting
- Shipping and fulfillment
Replacing or significantly changing that system can create concerns about cost, disruption, data migration, employee training, and customer service.
However, avoiding change carries risks of its own.
Employees may spend increasing amounts of time working around the system. Leadership may lack reliable information for decision-making. Manual processes may become more difficult to scale, while outdated technology limits integration, automation, and reporting opportunities.
The first step does not have to be an immediate ERP replacement.
A structured assessment can help determine whether an organization needs a new system, an upgrade, better configuration, improved training, cleaner data, or redesigned business processes. It replaces uncertainty with a clearer understanding of the current environment and a practical roadmap for what should happen next.
2. Outdated ERP Systems Are Limiting Operational Growth
Several distributors described working with ERP systems that no longer reflect the way their businesses operate.
Legacy systems may still process transactions, but that does not necessarily mean they are supporting the organization effectively.
An outdated ERP can create challenges such as:
- Limited access to real-time information
- Difficulty integrating with newer applications
- Heavy reliance on spreadsheets
- Inconsistent workflows between departments or locations
- Reporting that requires extensive manual effort
- Customizations that are poorly documented
- Limited automation capabilities
- Increasing dependence on a small number of experienced employees
For companies using Epicor Prophet 21, modernization may involve reviewing system configuration, adopting more of P21’s existing functionality, preparing for the Web UI, or evaluating an on-premises-to-cloud transition.
As discussed in our article on Prophet 21 cloud migration planning, moving to the cloud should not be treated as a
simple technical transfer. It is an opportunity to evaluate processes, data, reports, integrations, customizations, and user readiness before carrying the current environment forward.
The goal should not be to move existing problems into a newer platform. The goal should be to create a cleaner, more efficient operating environment.
3. Manual Inventory Forecasting Is Consuming Valuable Time
Inventory forecasting was another significant concern.
Many distributors still depend on employees to gather information from multiple sources, manipulate spreadsheets, interpret inconsistent demand patterns, and make purchasing decisions through highly manual processes.
Manual forecasting creates several risks:
- Decisions depend heavily on individual experience
- Different employees may use different methods
- Information becomes outdated quickly
- Exceptions are difficult to identify
- Forecasting takes time away from higher-value analysis
- Growth increases the workload without improving the process
Technology can support better forecasting, but automation alone is not enough. Reliable forecasting depends on accurate data, appropriate item classifications, well-designed replenishment settings, and consistent purchasing processes.
Before automating a forecast, distributors should understand how demand is being calculated, which exceptions require human judgment, and whether the underlying data can be trusted.
4. Dead Stock and Understock Are Difficult to Control
Distributors also discussed the challenge of identifying dead stock while preventing understock and avoidable stockouts.
These are two sides of the same inventory problem.
Excess inventory ties up working capital, consumes warehouse space, and can become increasingly difficult to sell. Insufficient inventory can lead to missed sales, delayed orders, emergency purchasing, and dissatisfied customers.
The challenge becomes more complex when distributors manage large item catalogs, equivalent products, multiple branches, seasonal demand, long supplier lead times, or specialized product requirements.
Warning signs of an inventory-management problem may include:
- Buyers routinely overriding system recommendations
- Large quantities of slow-moving inventory
- Frequent emergency purchase orders
- Stockouts on important items
- Unreliable lead-time or usage data
- Inconsistent item classifications
- Limited visibility across branches or warehouses
- Reports that require manual cleanup before they can be used
Effective inventory optimization is not simply about reducing stock. It is about improving the decisions that determine what to purchase, how much to purchase, where to stock it, and when to replenish it.
5. Unorganized Systems Create Hidden Inefficiencies
Not every operational problem is obvious.
Some inefficiencies remain hidden because employees have learned how to work around them. A process may involve duplicate entry, a personal spreadsheet, an informal approval, or a manual report—but because the work still gets completed, the underlying inefficiency may go unaddressed.
Over time, these workarounds become part of the organization’s normal routine.
This creates risk when:
- Processes are not documented
- Different locations follow different procedures
- Critical knowledge belongs to one employee
- Information is stored outside the ERP
- Departments use conflicting data
- Managers cannot easily measure performance
- Employees spend time correcting preventable errors
In these situations, the ERP may be blamed for a problem that actually involves process design, data quality, system configuration, training, or a combination of all four.
That is why effective ERP optimization begins with questions—not software features.
A consultant must understand how work moves through the organization, where decisions are made, what employees do when the standard process fails, and which steps create delays or errors.
6. Industry-Specific Workflows Need Better Technology Support
Distributors at the event also expressed interest in more specialized capabilities, including an automated system for managing wire and pipe cutting lengths.
Workflows involving cut products can be difficult to manage through generic processes. Employees may need to track requested lengths, available material, remaining quantities, item information, pricing, and fulfillment requirements.
When those steps are handled manually, the business may experience:
- Inconsistent cut-length calculations
- Inventory inaccuracies
- Excess remnants or unusable material
- Manual item or order updates
- Slower order processing
- Dependence on employee knowledge
- Difficulty tracking what remains available
The answer is not always a standalone application. Depending on the existing environment, the solution may involve ERP configuration, business rules, integrations, warehouse technology, or a purpose-built workflow.
The important first step is documenting how the process works today and identifying where automation would deliver the greatest operational value.
Is Your ERP Supporting the Business—or Has Your Team Learned to Work Around It?
Distributors do not need to wait for a system failure before evaluating their operations.
Consider asking the following questions:
- How many critical processes depend on spreadsheets outside the ERP?
- Where are employees entering the same information more than once?
- Which reports require manual manipulation before leadership can use them?
- Can buyers clearly identify dead stock, understock, and unusual demand?
- Are inventory forecasts based on reliable and consistently maintained data?
- Do different branches or departments follow different versions of the same process?
- Are employees avoiding parts of the ERP because they are too difficult or poorly configured?
- Does the organization rely on a few employees to understand critical workarounds?
- Can the current system support future integrations, automation, and growth?
- Is there a documented plan for ERP upgrades or cloud migration?
Multiple “no” or “not sure” answers may indicate that the organization would benefit from an operational or ERP assessment.
How Scaled Solutions Helps Distributors “SCALE”
Scaled Solutions helps distributors align their people, processes, data, and technology.
As an Epicor Platinum Partner with deep distribution experience, we work with companies that are implementing Prophet 21, optimizing an existing P21 environment, preparing for cloud migration, recovering a struggling project, or evaluating broader operational improvements.
Our support can include:
Business Operational Assessments
We review current workflows, systems, data, organizational responsibilities, and performance challenges. The result is a prioritized roadmap that distinguishes immediate improvements from longer-term initiatives.
Prophet 21 Implementation and Optimization
Our team supports P21 planning, configuration, data migration, testing, training, go-live preparation, stabilization, and ongoing optimization. We also help existing P21 users identify functionality they may not be fully utilizing.
P21 On-Premises-to-Cloud Assessments
We evaluate versions, customizations, reports, integrations, business rules, data, workflows, and user readiness before migration. This helps distributors understand the scope and risk before making a major transition.
Inventory and Purchasing Process Improvement
We help organizations evaluate item data, classifications, replenishment settings, purchasing rules, forecasting processes, and inventory reporting to improve visibility and decision-making.
Workflow Automation
Scaled Solutions helps reduce manual work through system configuration, integrations, business rules, and automation solutions such as beScaled.ai™ and ScaledVelocity™. The objective is not simply to automate an inefficient process, but to improve the process before introducing automation.
Industry-Specific Process Design
For specialized requirements such as wire and pipe cut-length management, we can assess the current workflow and determine how ERP functionality, warehouse processes, integrations, or customized business rules could better support the operation.
Training and Long-Term Support
Technology only creates value when employees understand and consistently use it. We provide training, adoption support, post-go-live assistance, and continuous improvement services to help organizations sustain results.
The Value of the Scaled Solutions and AD Partnership
Our experience at the AD Bearings & Power Transmission event demonstrated why trusted industry partnerships matter.
AD understands the priorities of independent distributors and creates opportunities for members to connect with providers that can address specific business needs. Being named an AD Preferred Service Provider gives Scaled Solutions the opportunity to participate in those conversations, understand members’ challenges, and help them evaluate realistic paths forward.
Our role is not to recommend change for the sake of change.
It is to help distributors understand what is happening inside their operations, identify the root causes of inefficiency, and determine which improvements will produce meaningful business value.
This event may have started the conversation, but the real work begins by turning those conversations into action.
AD members can learn more about available services and our approach on the Scaled Solutions AD partnership page.
Ready to Identify What Is Holding Your Operations Back?
Whether your organization is struggling with an outdated ERP, manual forecasting, excess inventory, stockouts, unorganized processes, or specialized distribution workflows, Scaled Solutions can help you determine the right next step.
Start with a conversation about your current environment, operational priorities, and growth goals.
Optimize first. Implement second. Support long term.