SAP Business One for Distribution

Cloud Software for Wholesale Distributors

Automate your processes with SAP® Business One to squeeze out costs in your wholesale distribution business and give you greater efficiencies throughout your order-to-cash process.

Wholesale distributors are facing many pressures, such as consolidation, shrinking margins, and supply chain challenges. They are searching for ways to deliver profitable growth.  SAP Business One is a comprehensive business management software designed for the wholesale distribution market.

SAP Business One distribution software helps your business to:

  • Transact wholesale distribution business – along with services, manufacturing and projects.
  • Improve inventory levels and accuracy – full supply chain capabilities.
  • Automate purchasing operations – use the MRP module for order recommendations.
  • Achieve efficiency – with integrated warehouse operations.
  • Grow and scale – it is multi-company, multi-branch and multi-currency capable.
SAP Business One for Distributors, ERP benefits distribution software, Wholesale distribution software SAP

Types of Distribution Companies That Fit SAP Business One

Standard Wholesale Distribution:  Companies that buy product, maintain inventory then distribute to customers.

Wholesale Distribution + Services:  Companies that distribute products and also provide services such as installation, repair or inspections.


Wholesale Distribution + Manufacturing:  Companies that distribute products and also manufacture or assemble products.

Wholesale Distribution + Projects:  Companies that distribute products and also perform and manage project work.

Key Functionality in SAP Business One

SAP Business One functionality chart

Best Practices Across Items, Purchasing and Warehouse Management

SAP Business One brings you best practices for wholesale distribution software in 3 ways:

  1. Item and Vendor Master: The item master records keep track of items that are sold, purchased, and inventoried by your business.
  2. Purchasing Management: Easily manage your entire procurement process from purchase order creation to vendor invoice payment.
  3. Warehouse Management: Know everything about incoming, stocked and outgoing items in all of your warehouse locations.

Item Master Data in SAP Business One

Item master data contains all the information necessary about the products you inventory, stock and sell and the vendors you purchase from.  Master record data includes item number, description, purchasing and packaging units of measure, dimensions, weight, prices and tax types. 

Item master data can be applied to inventory items, purchasing items, and sales items as well as fixed assets.  Within the item record there is the ability to further classify items with item groups and properties.

Purchasing and Supply Chain in SAP Business One

SAP Business One purchasing process

Purchasing management is a core functionality of SAP Business One.  Use the integrated capabilities to manage your entire procurement process from purchase order creation to vendor invoice payment. 

  • Manage purchase orders, goods receipts and returns, items, and vendors.
  • Process vendor invoices for payments to your suppliers.
  • Track landed cost elements (such as freight, insurance, and customs duties) to the FOB costs of each item.
  • Control full pricing details.

If your role is purchasing, read the SAP Business One for Purchasing Value Proposition Sheet.

MRP in SAP Business One

SAP Business One contains an MRP (Materials Requirements Planning) module.  This module looks at inventory levels, demand (such as sales orders and purchase orders), forecasts, and supply – and presents to you recommended actions to meet requirements.

The result of an MRP run is a suggested set of purchase orders, production orders, purchase requests, purchase quotations or inventory transfer requests between warehouses. These recommendations can be converted easily to actual documents and transactions.

The reason to use MRP is simple: It replaces informal, ad hoc, error-prone production and purchase scheduling based on instincts or spreadsheets — with a more structured process using better information.

Warehouse Management in SAP Business One

Whether you have one warehouse, or multiple warehouses, SAP Business One has the functionality to help you manage detailed item, inventory, and warehouse data so you can accurately record and track inbound, outbound, and inter-warehouse stock movements. 

Key features of the warehouse management functionality:

  • Perform instant availability checks and track item stock levels, such as committed, ordered, or available items, by warehouse, individual item, and item group.
  • Easily transfer items between warehouse locations.
  • Use bin locations for setting a bin structure, properties and attributes.
  • Create pick lists and pull the listed items with the Pick & Pack Manager.
  • Process consignment and drop-ship orders with dedicated warehouses.
  • Perform cycle counts while orders are received and shipped, so that business activity does not have to be postponed to perform stocktaking.

Run Your Distribution Business in One Software

SAP Business One includes all the processes you need to run your distribution business. Unlike niche solutions, it provides complete business management functions covering financials, sales, customers, inventory, and warehouse.  And because it is designed specifically for small and mid-sized businesses, it can be installed quickly and is straightforward to maintain and use.

Add-on solutions for SAP Business One in the Distribution Industry

Where functionality beyond the standard SAP Business One capabilities are needed, add-on modules that provide functionality typically seen in the warehouse and distribution industry include:

  • eCommerce integration
  • Inventory planning and inventory optimization toolsets
  • WMS for handheld processing in your warehouse
  • Credit card processing
  • Shipping and freight management integration toolsets


More Information About ERP Software for Distributors

LBSi is an SAP Business One partner that is certified and authorized to sell, install, implement and train on SAP Business One for your distribution business.  We offer a no cost, no obligation discovery meeting — learn if SAP Business One can meet your requirements.

Ready to see SAP Business One for distributors in action?  Watch the ERP Logic webinar on YouTube, Powerful, Cloud ERP Software for Small and Midsize Distribution Companies 

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