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The Distribution-industry specific software area covers software companies and products of interest to distributors and wholesalers. Types of software found under this category include inventory management, order entry, warehouse management, electronic data interchange (EDI), and the emerging area of electronic commerce and XML and BizTalk. The reason for distribution being a separate from general business or enterprise resource management (ERP) is that the distributor occupies a distinct place in, what is called, the extended supply chain, that reaches from manufacturer to the end-customer. Some business trends attempt to remove the distributor from the supply chain (a process called disintermediation). A distributor's choice of business management software is critical in streamlining business processes, increasing profitability, reducing transaction costs, enhancing customer service, maximizing inventory investment, and remaining competitive and a valuable contributor in the supply chain.

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