3 ways parts distributors win by implementing NetSuite

Bhavna Agarwal, Adnan Patel, Grant Ludema
| 6/29/2022
3 ways parts distributors win by implementing NetSuite

Whether they’re selling parts used to maintain aircraft, supplying repair technicians with the items they need to fix equipment, or furnishing end users with parts for their cars, the companies that specialize in matching the right part with the right customer are facing big demand. To meet the growing demand for their products, parts distributors need software systems that can keep up with their expanding operations.

For example, parts distributors have to be able to manage superseding items. This involves keeping track of parts that the original equipment manufacturer (OEM) has replaced and assigned a new part number. In the auto industry, parts often are updated or made obsolete on an annual basis, which means parts distributors should regularly update their systems or risk potential impacts on their sales and future purchases.

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3 reasons parts distributors use cloud enterprise resource planning (ERP)

When the thick parts catalogs used in the past gave way to software-based parts management systems, distributors increasingly turned to systems like Oracle® NetSuite and the Crowe Parts Distribution Accelerator to alleviate problems with parts tracking and other issues. With a bundle of capabilities thoughtfully built for the complex, competitive parts distribution environment, the Crowe Parts Distribution Accelerator works with NetSuite to provide three key benefits to parts distributors.

1. Finding the right part in seconds versus minutes or hours

Some parts distributors are running their businesses on systems that no longer support their growing organizations. With OEMs constantly updating their products and the related parts, managing these changes takes unified ERP and an integrated parts supersession management application. With NetSuite and the Crowe Parts Distribution Accelerator working in unison, locating the right part for the right application no longer takes minutes or hours – it can take just seconds.

2. Lower shipping costs

With NetSuite and the Crowe Parts Distribution Accelerator in place, distributors might be able to offer free overnight shipping in exchange for larger order sizes and still earn a profit on those sales. The Crowe Parts Distribution Accelerator provides order-by-order freight margin analysis, a key functionality for parts distributors that must be able to compete on price. Using this analysis, parts distributors can quickly determine whether they will win or lose money on a sale based on the shipping costs.

3. More efficient warehouse operations

For a parts distributor that has a 250,000-square-foot warehouse and must fulfill thousands of orders daily, even just a few erroneously picked orders per day can create significant inventory discrepancies, inaccurate orders, unexpected stock-outs, and unhappy customers. When NetSuite is implemented in a warehouse or distribution center, associates can pick and pack multiple orders at once instead of trying to manage them one at a time. This helps produce substantial savings.

We can help you set up NetSuite specifically for wholesale distribution.

Crowe has already developed several solutions within NetSuite to address the challenges and barriers to growth for our wholesale distributor clients. We can do it for you, too, in less time than you might expect.

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Improve your competitive position

For many parts distributors, the keys to better organizational performance lie in a combination of business applications, best practices, and data-driven insights. With decades of experience helping parts distributors take advantage of these tools, Crowe can help parts distributors get the most out of their NetSuite implementations and tackle their most pressing supply chain, information technology, and distribution challenges.

Using NetSuite and the Crowe Parts Distribution Accelerator, distributors can prepare for growth with updated technology, simplify the parts supersession management process, and improve their competitive positions in the marketplace.

Interested in learning more about NetSuite for parts distribution?

Contact us to hear about what it might look like to implement an ERP system for your parts distribution business.
Bhavna Agarwal
Bhavna Agarwal
Principal, Consulting
Adnan Patel
Adnan Patel
Principal, Oracle NetSuite Leader
people
Grant Ludema
Consulting