Distribution software refers to software which manages everything from order processing and inventory control to accounting, purchasing and customer service, supply chain management, sales, customer relationship management, and finance management.

A critical requirement for distribution software is inventory visibility which includes both internal inventory visibility (above) as well as visibility across the supply chain (vendors and customers)

More sophisticated solutions can cover areas such as advanced forecasting and replenishment, warehouse management, pick, pack and shipping, EDI or Electronic Data Interchange, Trade Spend Management and more.

Distribution software helps companies to manage internal and external resources efficiently by minimizing stockouts but ensuring overstocking doesn't occur as well.

Cloud-based distribution software began its rise in popularity in approximately 2010. [citation needed] The benefits of cloud-based distribution solutions include the ability to access the application from any device that uses a web browser and cost-savings resulting from reduced hardware requirements.

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