Is your distribution business getting the benefits of a true cloud solution?

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Categories: Acumatica Cloud ERP, Distribution / Supply Chain, ERP
December 26, 2019
distribution true cloud solution

Seamless integration, improved security, and the ability to incorporate emerging technologies are just a few of the benefits companies are getting with true cloud solutions, leading to increased productivity and higher ROI.

Wholesale distribution is a complicated business. An industry in a constant state of change, companies in the distribution industry need to work faster than ever. Understanding inventory, cash flow, and the market as a whole requires the right information at the right time provided to people who can use it—no matter where they may be.

Distribution firms are turning to the cloud. But is it true cloud?

To make this all happen, distributors of all sizes are turning to cloud business management solutions. Designed to increase visibility, provide anytime and anywhere access, and deliver information in real time, the cloud provides companies with the mobility they need to make fast and well-informed decisions.

However, not all clouds are created equal. As with any technological movement, there are always fakes. Many legacy vendors worked to repurpose their solutions, slap the cloud label on them, and milk a few more years of revenue from their aging product. These fake cloud products are simply legacy applications that are adapted and hosted on the internet, never truly designed to be delivered and used via the cloud.

Unfortunately, this “cloud” is nowhere near as innovative, efficient, or useful, leaving distribution companies who choose it with an unreliable solution that likely costs much more and delivers much less than expected. Whether it’s limited availability, poor integration, or increased complexity, fake cloud products can hold distributors who choose them back, increasing ownership costs and hindering your scalability.

Knowing the difference between true cloud and fake cloud is critical to the long-term success of your software initiatives, and luckily, a new guide was released to help distributors understand.

What do distribution firms get from a true cloud solution?

Seamless integration, improved security, and the ability to incorporate emerging technologies are just a few of the benefits companies are getting with true cloud solutions, leading to increased productivity and higher ROI. Paired with improved visibility into your sales, order management, inventory, purchasing, production and services, and accounting information and the ability to scale, companies who embrace true cloud solutions can reap the rewards for years to come.

The recently released Acumatica guide, True Cloud vs. Fake Cloud: How Distributors Can Tell the Difference, explored many of the benefits of true cloud solutions and the additional risks of falling into the fake cloud trap.

So why does the cloud hold so much promise? Simple. It tears down barriers to productivity. How?

  1. Functionality and innovation: Distribution firms have unique needs, and business management solutions need to be customized to meet these needs. The cloud makes it easier for vendors to create a distribution-focused solution and for partners to customize and deliver it—no matter how many SKUs, warehouses, or currencies.
  2. Integration made easy: When you choose the right cloud ERP system, that platform will serve as the hub for all your business applications. Knowing this, it’s imperative that the product can connect to all of them. True cloud products were built with this in mind, making it easier and more affordable to integrate.
  3. Data security made simple: Trying to keep track of the software side and the hardware side was often challenging for companies using on-premises products. Luckily, the cloud has that covered. No good cloud vendor can survive without making and delivering on security promises, and they put huge focus on keeping data locked down.
  4. Delivering what’s new and what’s next: With so much on the horizon for the distribution industry, keeping track of it is hard enough—leveraging it is even harder. Luckily, cloud solutions were built to adapt with the market, helping you control your supply chain and ultimately, improve your bottom line.

The true cloud imperative: How to avoid falling into a faux cloud trap.

So how can you avoid getting trapped by fake clouds? Start by understanding what they are. Fake cloud software occurs when legacy applications are adapted and hosted on the internet, but never truly designed to be delivered and used via the cloud. Often, this means you will need additional products to access it, require hand-coded customization,costly, ineffective integrations, and poor scalability.

Ready to learn more? We invite you to download the entire True Cloud vs. Fake Cloud: How Distributors Can Tell the Difference guide to understand:

  • Three reasons mobile devices alone can’t meet the need for real-time information
  • Four ways the cloud can enhance productivity for distribution companies
  • Five reasons legacy applications don’t play well with the internet
  • Eight ways to identify true cloud software for distributors
  • Where to see true cloud software in action

Do you have the right software for distributors and other tools you need to succeed in the age of technology? Download the NexTec Corporate Overview Brochure to learn more about how NexTec can keep the gears moving throughout your organization.

Additional Distribution Resources

Distribution: Key metrics/KPIs for distribution

Distribution: How to control cash flow alongside product flow

How Acumatica data-driven insights help distribution businesses