What Is a Distribution ERP—and How Can It Improve Your Payment Operations?
07 July 2025
Written by Libby James
Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.
Enterprise Resource Planning Software – A Payments Guide
Distribution ERP (Enterprise Resource Planning) software is an all-in-one digital system that helps wholesale and distribution businesses manage their operations more efficiently. From inventory control and order processing to warehousing, shipping, and accounting, it centralises all business processes in one place.
But beyond operational efficiency, what many distributors don’t realise is how much a distribution ERP can impact payment processing, cash flow, and revenue growth—especially when integrated with modern, real-time payments infrastructure.
In this guide, we’ll explore:
- What makes a distribution ERP different from a generic ERP
- Who needs one and why
- The overlooked role of payment integration
- How we help businesses optimise payment flows within ERP systems
What’s the Difference Between a General ERP and a Distribution ERP?
A general ERP platform is designed to manage business functions such as finance, HR, procurement and logistics—but in a broad sense. These solutions tend to work best for companies with standard processes across industries.
In contrast, a distribution ERP is purpose-built for the unique challenges that wholesale and distribution businesses face. It supports:
- Multi-location inventory tracking
- Real-time supply chain visibility
- Demand forecasting
- Landed cost calculations
- Built-in support for EDI (electronic data interchange)
- Compliance with retailer-specific shipping and fulfilment requirements
In other words, distribution ERPs are tailored for businesses managing fast-moving goods, fluctuating stock levels, and complex logistics networks.
Do You Need a Distribution ERP?
If you're a wholesaler, importer, distributor or third-party logistics (3PL) provider, a distribution ERP can streamline the way your business operates. Specific sectors that benefit most include:
- Food and beverage distributors
- Apparel and consumer goods wholesalers
- Furniture, hardware and electronics suppliers
- eCommerce and drop-shipping fulfilment centres
Distribution ERPs allow you to scale operations without increasing overhead—especially when equipped with automated payment functionality and real-time invoicing.
Five Signs It’s Time to Upgrade Your ERP for Distribution
- Disjointed systems create data silos
If your finance, warehouse, and sales departments are working from different platforms, inefficiencies and miscommunication are inevitable. A modern ERP synchronises everything—including payments. - Delayed or manual payments are harming cash flow
Manually tracking payments or relying on cheques and BACS transfers can delay revenue and put strain on your working capital. - High order volume with outdated invoicing systems
If your team is processing hundreds or thousands of invoices monthly, a lack of automation increases the risk of errors and late payments. - You’re expanding into retail or B2B eCommerce
Retailers and marketplaces often require specific invoice formats, payment terms, and fulfilment timelines. A distribution ERP with built-in payments can help you stay compliant and competitive. - You’re struggling with customer satisfaction and repeat business
Late shipments, errors in billing, or lack of payment options all contribute to a poor customer experience. Payment integration can help automate confirmations, refunds and reconciliation.
The Payments Side of ERP: Why It Matters
While most businesses adopt ERP for operational reasons, the payments side is just as important—and often overlooked. ERP systems that don’t support modern payment infrastructure can:
- Slow down invoicing and reconciliation
- Make it harder to track cash flow in real time
- Lead to more manual admin work for finance teams
- Cause friction in the buyer experience (especially for B2B)
This is where our expertise at Merchant Advice Service comes in.
How Merchant Advice Service Supports Payment Integration Within ERP
Our role is to help distribution businesses optimise how they get paid. We do this by reviewing your current ERP, identifying any gaps in payment flow, and introducing practical, compliant solutions.
We assist with:
- Embedding modern payment methods into your existing ERP
(e.g. card, bank transfer, virtual accounts, and wallet-based payments) - Automating invoicing and payment collection
through integration with your inventory and order management tools - Ensuring your ERP supports auto-reconciliation
So finance teams can reduce manual work and reporting errors - Helping with refund handling, chargeback mitigation and compliance
critical for high-volume distributors or international operators
Whether you already use a distribution ERP or are looking to implement one, we guide you through the payments journey—ensuring your software supports your financial goals, not just your operations.
How Payment Integration Enhances ERP ROI
Adding payment functionality to your ERP unlocks major benefits across departments:
|
Benefit |
How it Works |
|
Faster payments |
Invoices sent in real-time and paid instantly via embedded links |
|
Improved cash flow |
Real-time visibility over accounts receivable and outstanding payments |
|
Lower admin costs |
Fewer manual steps in invoicing, chasing payments, and reconciliation |
|
Customer satisfaction |
Automated confirmations and flexible payment options |
|
Scalable growth |
Systems that support increasing transaction volumes without added staff |
For wholesale businesses operating across multiple channels—retail, marketplace, DTC—having payments integrated with your ERP can be the difference between smooth scaling and major growing pains.
Ready to Optimise Payments in Your Distribution ERP?
If your business is running a legacy ERP, or relying on disconnected systems for payments, now’s the time to consider the full potential of a modern, integrated solution.
At Merchant Advice Service, we help businesses like yours:
- Choose ERP-compatible payment solutions
- Streamline your order-to-cash process
- Reduce payment friction and boost revenue
We don’t sell software—we offer tailored advice, based on your vertical, transaction volume and growth goals.
Want to get paid faster, cut admin time, and improve your ERP’s performance?
Get in touch for a free consultation with our payment integration specialists.
FAQs
How does payment integration improve ERP functionality?
Payment integration allows your ERP system to automate the order-to-cash process—this includes generating invoices, collecting payments, reconciling accounts, and updating financial data in real time. This reduces manual input, minimises errors, and gives your business faster access to working capital.
Can a distribution ERP handle multiple payment methods?
Yes, when connected with a modern payment gateway, a distribution ERP can support a range of B2B payment methods, including card payments, bank transfers, direct debits, e-wallets, and virtual accounts. This flexibility improves customer experience and accelerates payment collection.
What’s the benefit of automating invoicing in ERP?
Automated invoicing means your system generates and sends invoices as soon as goods are dispatched or services delivered. This ensures accuracy, speeds up the billing cycle, and makes it easier to track outstanding payments, reducing the burden on finance teams.
How does ERP payment integration improve cash flow visibility?
Integrated payments provide real-time updates on received and outstanding payments within your ERP. This gives your business an accurate, up-to-date view of cash flow, essential for planning, forecasting, and maintaining financial health.
Can ERP integration help reduce late payments?
Yes. With automated reminders, instant invoice delivery, and easier payment options, integrated ERPs reduce friction in the payment process. Some systems also allow recurring payments or customer self-service portals, encouraging on-time settlement.
What is auto-reconciliation in ERP systems, and why is it important?
Auto-reconciliation is when your ERP matches incoming payments to open invoices automatically. This reduces the need for manual checks, improves accuracy, and ensures your accounts receivable data is always up to date.
Can ERP systems manage refunds and chargebacks?
When integrated with a robust payment system, ERP software can streamline refund processing and handle chargebacks. This includes automatically updating stock levels, issuing credits, and tracking disputes, saving time and avoiding costly errors.
How can Merchant Advice Service help with ERP payment optimisation?
We help businesses align their payment processing with their ERP systems. This includes reviewing your current setup, advising on suitable payment integrations, and connecting you with solutions that enhance automation, reconciliation, and cash flow, all without promoting a specific provider.
