Is It Time For Distributors To Rethink CRM In Business Planning?

Distributors that have left CRM solutions out of their business planning may want to give them another look.

An article on DestinationCRM.com says that new technology hasn’t been a priority for wholesale operators and that CRM solutions traditionally haven’t been geared toward them. But this dynamic is changing on both sides of the equation.

As CRM solutions have penetrated other industries, distribution companies haven’t pursued them because of the unique needs of their sales teams. They need to be able to show off new products to retailers and ensure stores have the right stock available for the most popular products.

“For this, ideally, they need a smart e-catalog ordering application that is integrated with their ERP and provides critical real-time sell-through and inventory information,” the article says. “No generic CRM provides this type of information.”

Today’s CRM systems, particularly the NetSuite solution, do however allow users to create a sophisticated e-catalog website that interfaces with the CRM system. While a CRM system may not actually be providing that sophisticated e-catalog, the integration can be there to provide updated inventory availability and dynamic price lists.

E-catalog websites require a lot of maintenance for updating item numbers, product descriptions and pricing information. That requires a significant manual effort. Integration with a CRM or ERP e-commerce system enables the data to pass from the back-end systems to the website. That way, as inventory is updated through the organization, the website is automatically updated to ensure that orders are only accepted for products that exist in the system.

If organizations are going to implement an enterprise-wide CRM system, they must make sure it’s easy for the sales reps to use. Lack of user adoption is the top reason that CRM projects fail.

Mobile CRM solutions are coming out now that meet the distribution industry’s needs. The DestinationCRM.com article says distributors stand to reap many benefits from the new CRM applications. These benefits include synchronization of calendars, emails, contacts and tasks; management of product floor displays; and easy access to customer information.

Source: DestinationCRM.com, May 2013