Why Wholesale Distributors Still Rely on Manual Processes (And How to Stop)

In an era when artificial intelligence can write code and self-driving trucks are being tested on highways, it is remarkable how many wholesale distributors still process orders by hand. A sales rep receives a PDF purchase order via email, prints it out, walks it to the order entry desk, and a data entry clerk manually types each line item into an ERP system that was installed in 2009.

This is not an exaggeration. According to industry research, over 60% of wholesale distribution companies still rely on manual data entry for a significant portion of their order processing. The question is not whether this is inefficient. Everyone knows it is. The question is why it persists, and more importantly, what it takes to finally break free.

The Four Reasons Manual Processes Persist

1. Legacy Systems That Resist Integration

The most common barrier to automation in wholesale distribution is the legacy ERP. Many distributors run on systems like older versions of SAP Business One, Sage, Epicor, or industry-specific platforms that were never designed for modern API-based integration. These systems work. They contain decades of historical data, custom configurations that match the business perfectly, and institutional knowledge embedded in their workflows.

Replacing them is prohibitively expensive and risky. A full ERP migration for a mid-size distributor can cost $500,000 to $2 million and take 12 to 18 months, with no guarantee that the new system will serve the business any better than the old one. So distributors stay on legacy platforms and accept manual processes as the cost of stability.

What many distributors do not realize is that modern automation does not require replacing your ERP. Integration platforms can sit between your existing systems, extracting data from one, transforming it, and loading it into another, without modifying either system. Your ERP stays exactly as it is. The manual work in between simply disappears.

2. The PDF and Fax Order Problem

Wholesale distribution is a relationship-driven business. Your customers have been ordering the same way for 20 years, and they are not about to change. Some send PDF purchase orders by email. Others fax their orders. A few use EDI, but each with slightly different formatting. And your largest accounts use proprietary procurement portals that export orders in custom CSV formats.

The average wholesale distributor receives orders in 5 to 8 different formats. Each format requires a different manual process to get the data into the ERP, and each manual touch point introduces error risk.

The challenge is not that any single format is difficult to handle. It is that the variety of formats makes it impractical to build a single manual workflow that handles everything efficiently. The result is a patchwork of processes, each maintained by a different person, each with its own quirks and failure modes.

Side-by-side comparison of manual versus automated wholesale order processing workflows.

3. Manual Data Entry Between Disconnected Systems

Even distributors who have invested in modern systems often find themselves trapped in manual processes because their systems do not talk to each other. The order management system does not connect to the warehouse management system. The WMS does not sync with the accounting platform. And the CRM exists in its own separate universe.

The result is human middleware: employees who spend their days copying data from one screen to another. A customer service rep takes a phone order and enters it into the order management system. A warehouse coordinator reviews the order on one screen and creates a pick ticket in another. An accounting clerk matches shipping confirmations to invoices by manually cross-referencing two different systems.

Each of these manual transfers is an opportunity for error, delay, and data loss. And collectively, they consume an enormous amount of labor. A mid-size distributor with 200 orders per day typically has 3 to 5 full-time employees whose primary function is moving data between systems. At fully loaded labor costs of $45,000 to $55,000 per employee, that is $135,000 to $275,000 per year spent on work that automation can eliminate entirely.

4. Organizational Resistance to Change

Perhaps the most difficult barrier to overcome is cultural. Wholesale distribution tends to attract operationally minded people who take pride in their ability to manage complex manual processes efficiently. The order entry team has developed shortcuts and workarounds over years. The warehouse staff have their own systems for prioritizing picks. And management, having invested in these people and processes, is understandably reluctant to disrupt what works.

The concern is legitimate: poorly executed automation can be worse than no automation at all. But the risk of standing still is growing. Competitors who automate can offer faster delivery times, lower error rates, and more competitive pricing. Customers increasingly expect real-time order tracking and instant confirmations. And the labor market makes it harder every year to find reliable data entry staff.

How to Stop: A Practical Path Forward

Breaking free from manual processes does not require a big-bang transformation. The most successful wholesale distributors automate incrementally, starting with the highest-impact, lowest-risk processes and building from there.

• Start with order intake. Automating the parsing and entry of PDF, email, and fax orders delivers immediate ROI because it eliminates the most labor-intensive manual step.
• Connect your systems. Use integration middleware to create automated data flows between your ERP, WMS, and accounting platform. No system replacement required.
• Automate validation, not decisions. Let automation handle data checking, duplicate detection, and pricing verification. Keep human judgment for exceptions and relationship management.
• Measure and expand. Track time saved, errors eliminated, and orders processed per hour. Use these metrics to build the case for automating the next process.

OrderSync Pro's wholesale distribution automation is designed specifically for distributors who need to modernize without disrupting the systems and relationships that drive their business. We work with your existing ERP, your existing formats, and your existing team to eliminate manual work while preserving the expertise and customer relationships that make your business successful.