--- title: The Future of Distribution ERP description: Disruptions within the supply chain industry are growing in number and size. If you think you haven’t already been affected by disruption, you haven’t been paying attention. The problem with combating disruption is that distribution requirements rarely stay still — they’re never static. As economies shift and develop, so too do the most efficient methods --- # The Future of Distribution ERP Last Reviewed: March 17, 2026 8 min read [No comments](https://www.selecthub.com/distribution/future-distribution-erp-software-trends/#respond) [ ![Lindsey Jenkins](https://www.selecthub.com/wp-content/uploads/2020/07/Lindsey-1-96x96.jpg) ](https://www.selecthub.com/author/lindsey-jenkins/) [Written by Lindsey Jenkins](https://www.selecthub.com/author/lindsey-jenkins/) Technical Content Writer [ ![Kim O'Shaughnessy](https://secure.gravatar.com/avatar/aa3a61ac7e38580003de0d2fb4e71e8281ec6d7b9d0266351a38b2459e313e82?s=96&d=mm&r=g) ](https://www.selecthub.com/author/kim-oshaughnessy/) [Edited by Kim O'Shaughnessy](https://www.selecthub.com/author/kim-oshaughnessy/) Content Editor [ ![Shantashree Das](https://www.selecthub.com/wp-content/uploads/2024/02/cropped-Shantashree-Das-96x96.jpg) ](https://www.selecthub.com/author/shantashree-das/) [Technical Research by Shantashree Das](https://www.selecthub.com/author/shantashree-das/) Senior Analyst Table of Contents * [Key Takeaways](#Key%5FTakeaways) * [Future Trends](#Future%5FTrends) * [1\. The Synchronized Supply Chain](#1%5FThe%5FSynchronized%5FSupply%5FChain) * [2\. Warehouse Automation](#2%5FWarehouse%5FAutomation) * [3\. The Drones are Coming](#3%5FThe%5FDrones%5Fare%5FComing) * [Dealing with Changes on the Horizon](#Dealing%5Fwith%5FChanges%5Fon%5Fthe%5FHorizon) Disruptions within the supply chain industry are growing in number and size. If you think you haven’t already been affected by disruption, you haven’t been paying attention. The problem with combating disruption is that distribution requirements rarely stay still — they’re never static. As economies shift and develop, so too do the most efficient methods of delivery. While [distribution software](https://www.selecthub.com/distribution-software/) can end up contributing to this frenetic pace of change, it’s also a secret weapon for warehouses and distribution centers. But in order to select the system best suited for your business, you need to know what’s coming down the pipeline for this type of software in 2021 and the years to come. For this reason, we’ve put together the top three distribution ERP trends that will change the landscape of distribution software to deal with the chaotic future of the supply chain. [Compare Top Distribution Software Leaders](https://pmo.selecthub.com/distribution-erp-site-vers/) ## Key Takeaways * [The RFID tag market is expected to reach 24.5 billion USD by 2021](#takeaway1) * [IoT spending is expected to quadruple in the supply chain industry from 2015 to 2021](#takeaway2) * [The warehousing industry is expected to spend 22.4 billion dollars on robotics by 2021](#takeaway3) * [Enterprise spending on drones could reach 900 million USD by 2021](#takeaway4) ## Future Trends ### 1\. The Synchronized Supply Chain One of the distribution ERP software trends currently making waves in distributor circles is the RFID tag. This is a small label that contains an electronic circuit. The circuit is used to encode and store information about a product or delivery. For instance, if a pallet of goods were to arrive in your warehouse, you’d scan the tag and receive a detailed report about its contents and origins. ![Projected Size of the Global Market for RFID Tags]() Source: [Statista](https://www.statista.com/statistics/299966/size-of-the-global-rfid-market/) Not only is this a very speedy way to process and log deliveries, but RFID tags also have huge potential when it comes to stock control and optimization. They allow you to pinpoint the exact location of goods and, most importantly, how many have entered the distribution channel. This minimizes waste because you don’t end up producing or sending out more than is needed and can have complete control of your inventory. As you can see from the visual above, the global market for RFID tags has grown in the past couple of years and will continue to grow into 2021 and beyond. This projection also shows RFID tags will grow in popularity faster in the coming years than it has in the past. RFID technology is also a necessary component of the Internet of Things (IoT). IoT provides valuable insight into the supply chain by allowing managers to get real-time data on inventory and equipment in transit. RFID tags make it possible to monitor inventory that otherwise cannot connect to the internet such as raw materials. RFID and IoT technology together can provide insight into stock levels and locations, the temperature during transportation, equipment status, and more. ![Spending on IoT Worldwide by Vertical in 2015 and 2021]() Source: [Statista](https://www.statista.com/statistics/666864/iot-spending-by-vertical-worldwide/) This chart shows IoT’s growth across a number of industries, but the level of growth within the transportations and logistics field is matched by few others. Between 2015 and 2021, IoT spending within this industry is expected to quadruple from 10 billion US dollars to 40 billion. According to this data, it’s safe to say we’ll see distribution ERP providers focus on solutions to incorporate this type of technology in the coming years. [Compare Top Distribution Software Leaders](https://pmo.selecthub.com/distribution-erp-site-vers/) ### 2\. Warehouse Automation To reduce human error and the cost of labor, warehouse automation is set to grow in the coming years. In addition to IoT, this trend is expected to lean heavily on RFID tags as well. The impact of RFID technology is expanded if skilfully combined with automation software. By bringing in distribution ERP software like [warehouse execution systems](https://www.selecthub.com/distribution-software/) (WES), you can increase the control you have over inventory. Every aspect of the distributor channel gets collated and recorded. So, as long as you have software that can process all of this data, there’s no part of the inventory that cannot be refined. If your pickers are having trouble meeting targets, study routes and sequences to find a more efficient way of doing things. If you want to save money, [identify wasteful activities](https://www.westfaliausa.com/blog/10-reasons-to-use-warehouse-automation). ![Warehousing and Logistics Robots Revenue and Shipments]() Source: [Tractica](https://www.tractica.com/newsroom/press-releases/warehousing-and-logistics-robot-shipments-will-reach-620000-units-annually-by-2021/) But RFID tags and automation software aren’t the only ways to speed up processes in your warehouse. According to Tractica, the robotics market within warehousing and logistics is estimated to reach 22.4 billion dollars of worth by the year 2021\. Tractica’s analysts report that this growth is due to the increase in confidence in the ROI behind robotics. At a certain point, the market that now caters to a minority of distributors will grow large enough that it will have the means to enable widespread robotics adoption. Tractica’s analysts also note the period of rapid growth on the horizon will lead to more innovation in robotics, disrupting the industry for companies of all sizes. Robots are a great choice for [warehouses looking to optimize the retrieval and sorting of goods](https://www.selecthub.com/warehouse-management/building-automated-warehouse-system/). They can be configured to find the most efficient route and may also be able to communicate with the other devices in your warehouse to avoid traffic jams. This reduces errors and increases the speed at which items are gathered, which are then brought to your warehouse workers for packing. Robots and automation software work in significantly different ways, but ultimately both provide streamlined warehouse processes and reduced costs. As these two systems grow, [we’ll likely see their producers competing with one another](https://www.selecthub.com/supply-chain-management/supply-chain-management-future-trends/). This is especially true in the mid-market where many businesses could find themselves choosing between one or the other. ### 3\. The Drones are Coming We’ve all heard a great deal about drones at this point. Even people who don’t work in the distribution sector know all about their forecasted applications. While the technology is very much in its infancy, it seems inevitable that drones will become a key asset for distributors in the future. In the UK, [it’s estimated that drones will increase the GDP](https://www.pwc.co.uk/press-room/press-releases/pwc-uk-drones-report.html) from transportation and logistics by 1.5 percent by 2030\. If this is the case, distribution ERP software vendors will have to come up with new solutions to support them. ![Enterprise Investment in Drone Hardware Worldwide]() Source: [Statista](https://www.statista.com/statistics/689143/investment-in-drone-hardware-worldwide/) As mentioned in the graphic above, the commercial use of drones makes up the smallest percentage of global drone investment. However, this percentage is growing steadily and is set to hit nearly a billion dollars of investment in 2021\. In fact, the compound annual growth rate (CAGR) of civilian and enterprise drones is expected to reach 19 percent by 2021\. Drones will definitely have to prove their worth to the distribution industry before investment really takes off, but as the technology develops this is certainly feasible. For instance, some technology experts believe that, in a decade or two, drones could be [plotting their own delivery routes](https://redstagfulfillment.com/the-future-of-distribution/). This would be made possible with the use of small transmitters that the customer would place in an accessible location. Then, the drone would scan for it, detect its signal and take the shortest route. Moreover, the automation drones may potentially provide could solve a multitude of issues existing in the supply chain today. In our [supply chain management trends article](https://www.selecthub.com/supply-chain-management/supply-chain-management-future-trends/), we spoke at length on the trucking capacity crunch. Drones could be a great way to supplement delivery as the driver shortage continues and shipping rates skyrocket. However, there are still plenty of issues to iron out. For example, would the use of innovative security software be able to stop thefts? Would it be mostly automated or would employees still need to constantly monitor the drones in order to protect, recharge and repair them? Distribution companies will also have to consider the costs of these issues should they persist and determine whether the ROI is worth investing in drone technology. [Compare Top Distribution Software Leaders](https://pmo.selecthub.com/distribution-erp-site-vers/) ## Dealing with Changes on the Horizon So far as the future of distribution ERP software trends, we can expect more visibility within the supply chain, a higher degree of automation and drones playing a larger part in distribution. So what does this all mean for businesses looking to invest in a distribution solution? A couple things. First, companies now have more options when it comes to reducing errors. Costs that were once considered the price of doing business in this industry can be completely eliminated thanks to automation software and warehouse robotics. Secondly, businesses should be ready to deal with the increasing number of disruptions to the supply chain. While many of these disruptions come from distribution technologies, adopting a distribution software will be the first defense in handling all the new changes to the supply chain. In order to find a solution that’s right for your business, you’ll need to perform an in-depth comparison of your top software vendors, much like our own [distribution ERP comparison scorecard](https://pmo.selecthub.com/distribution-erp-site-vers/). Make sure you do enough research that you can select a software system with the confidence that it will help your business adapt to the changing landscape of this industry. ### Trending Topics #### [Distribution Management](https://www.selecthub.com/category/distribution/) [Distribution Software for Small Businesses: Benefits and Features](https://www.selecthub.com/distribution/distribution-software-small-business/) [Many businesses streamline their operations by using distribution software. 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Contributions from Lindsey Jenkins, Shantashree Das, Kankana Kalita, and Kim O'Shaughnessy. ## About the Contributors The following team members helped research, create, and review this content. [ ](https://www.selecthub.com/author/lindsey-jenkins/) Written by [Lindsey Jenkins](https://www.selecthub.com/author/lindsey-jenkins/) Technical Content Writer Lindsey Jenkins is a Market Research Associate at SelectHub. When she’s not writing about ERP software, you will probably find her watching Game of Thrones, curating Spotify playlists or playing board games with friends. She is a proud alumna of the University of Missouri, where she studied journalism with an emphasis in magazine writing. [See Full Bio](https://www.selecthub.com/author/lindsey-jenkins/) [ ](https://www.selecthub.com/author/shantashree-das/) Technical Research by [Shantashree Das](https://www.selecthub.com/author/shantashree-das/) Senior Analyst Hailing from the Northeastern state of Assam, India, Shantashree Das completed her Bachelor of Engineering (B.E) in Computer Science and Engineering at the Royal School of Engineering and Technology (now Royal Global University) in Guwahati. She then pursued her Master of Business Administration (MBA) in Operations Management and Marketing at Assam University, India, where she developed a strong interest in ERP. Over the course of her career at SelectHub, Shantashree has gained specialties in various ERP and construction software categories, such as Manufacturing Software, CMMS Software, Construction ERP Software, Warehouse Management Software, Supply Chain Management Software, Distribution Software, Field Service Software, Takeoff Software, Construction Bidding Software, Construction Estimating Software, Construction Management Software, Construction Scheduling Software, and Property Management Software. [See Full Bio](https://www.selecthub.com/author/shantashree-das/) [ ](https://www.selecthub.com/author/kankana-kalita/) Technical Research by [Kankana Kalita](https://www.selecthub.com/author/kankana-kalita/) Principal Analyst A seasoned business and research analyst, Kankana Kalita specializes in ERP, CMMS, manufacturing, construction, supply chain, HRMS and CRM. Prior to joining SelectHub, she earned a Bachelor's degree in Computer Science and Engineering, an MBA in Operations and Marketing, and worked in email marketing and logistics. [See Full Bio](https://www.selecthub.com/author/kankana-kalita/) [ ](https://www.selecthub.com/author/kim-oshaughnessy/) Edited by [Kim O'Shaughnessy](https://www.selecthub.com/author/kim-oshaughnessy/) Content Editor Kim is a digital content editor, having edited and managed content for over 40 different software categories. She discovered her zeal for writing while earning her BA in Communications at the University of Michigan. Kim enjoys working on any project that offers a creative outlet, and you can often find her blogging about video games in her spare time. If someone manages to pry her away from the game controller, she also enjoys spending time with family and friends. [See Full Bio](https://www.selecthub.com/author/kim-oshaughnessy/) Kim O'ShaughnessyIFS vs SYSPRO: Which Distribution ERP Software is the Winner? * ‹ * › ### Conversation ![Avatar](https://secure.gravatar.com/avatar/281d3616cf761f3582c0d76c23517846?s=32&d=mm&r=g) Write a response [Cancel reply](https://www.selecthub.com/distribution/future-distribution-erp-software-trends/#respond) Your message Your name \* Your email \* Website Save my name, email, and website in this browser for the next time I comment. **Tier 1:** Fully/moderately supported out-of-the-box allowing for quick and easy deployment. Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. **Tier 2:** Supported with workarounds or add-ons that may require additional costs. Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. **Tier 3:** Requires partner integrations or custom development that is often at an additional cost. Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. 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