ISSA's Guide

We encourage you to take a look at the link below, to view our Endorsing Association's annual distribution software guide.

This guide helps to paint a better picture of the computer systems used in the industry. One of the surprising things found, is that there are still a lot of distributors running their businesses with off-the-shelf programs like QuickBooks and Peachtree. There are a variety of reasons for this.

Most sophisticated enterprise-resource-planning (ERP) systems are still too expensive for many distributors. Profit margins are tight (as always), and new computer systems just keep costing more. In some ways, that seems counterintuitive: You would think that software companies could lower their prices once they’ve recouped the cost of their initial investment. But in reality, software companies need to continually invest in research and development to stay competitive and expand their customer base.

Another important reason a goodly number of distributors still run their businesses with off-the-shelf programs is that these products are becoming quite sophisticated. What started out as a simple accounting program on personal computers has grown into a robust business solution with a full suite of products. These systems now handle functions like payroll, point of sale, EDI, and warehouse management, just to name a few. About the only thing that hasn’t changed is that they still run on personal computers (although QuickBooks recently introduced a version called QuickBooks On-Line that you can use with nothing more than a Web browser).

And, of course, the users are becoming more sophisticated, also. Ten years ago, people were looking for turnkey solutions. They wanted the software company to install the system, do the training, and provide comprehensive ongoing support. Today’s user is often unafraid to install his or her own software or handle his or her own system configuration.

But what about the big ERP systems? As usual, the large software companies are still swallowing the smaller ones. Rarely do these acquisitions result in a better product or better services for the customer.

If you are looking to upgrade your computer systems this year, should you look at the bigger ERP systems? Absolutely—see the guide by clicking on the link below, listing only those systems that have some real experience serving the cleaning industry.

As for the off-the-shelf software like QuickBooks and Peachtree, they can be a great alternative—although they still aren’t powerful enough for a sophisticated warehouse with bar code scanning and lot control. They also require a tremendous time investment to properly configure them to your unique business processes, especially in a multibranch environment.

Download the Sixth Annual ISSA Today Software Guide