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What is Distribution Management Software?

Distribution management software coordinates the full process of purchasing, inventory management, order fulfilment and delivery for businesses that buy, store and sell physical products. It connects the various stages of the distribution process, from supplier purchasing through warehouse management to customer order fulfilment, in one system rather than managing each stage separately. Microsoft Dynamics 365 Business Central is widely used as distribution management software by UK SMEs.

How distribution management software works

Distribution management software centralises inventory data, purchasing and sales in one system, so stock levels update automatically as goods are received and shipped. Replenishment planning identifies what to reorder and when, while warehouse management functionality directs picking and put-away. Integration with e-commerce platforms and logistics providers extends the system to cover the full order-to-delivery process.

How UK distribution businesses use this software

  • A wholesale distributor uses Business Central to manage purchasing, multi-warehouse stock and customer order fulfilment in one connected system.
  • A business integrates its e-commerce platform with distribution management software via API integration, automatically syncing online orders into the fulfilment process.
  • A company uses MRP within its distribution management software to automate purchase order suggestions based on sales velocity and reorder points.
  • A distributor with seasonal demand uses historical sales data within the system to plan inventory ahead of peak periods more accurately.

How Advantage implements distribution management

Advantage implements Business Central as distribution management software for UK wholesalers and distributors, configuring purchasing, inventory, warehouse and fulfilment functionality to match each business's operational needs.

Talk to Advantage about distribution and logistics solutions →

Frequently Asked Questions

What is the difference between distribution management software and a warehouse management system?

A warehouse management system focuses specifically on stock movement and location within a warehouse. Distribution management software is broader, covering the full process from purchasing and inventory through to order fulfilment, transport and customer delivery, often with warehouse management as one component within it.

Can distribution management software handle multiple warehouse locations?

Yes. Modern distribution management software, including Business Central, supports tracking and managing stock across multiple warehouse locations, with the ability to transfer inventory between sites and report on stock by location.

Does distribution management software integrate with e-commerce platforms?

Yes, typically through API integration. This allows online orders to flow directly into the distribution system for fulfilment, with stock levels and order status synchronised automatically between the website and the back-office system.