Epicor Prophet 21 Explained: Features, Benefits, and Pricing

An impressive 41% of the top 50 largest distributors rely on Epicor Prophet 21 to run their businesses.

This guide takes a look at why it’s the go-to solution that keeps leaders ahead in a fast-moving industry.

What is Epicor Prophet 21?

Epicor Prophet 21 (P21) is an enterprise resource planning (ERP) system tailored for the distribution industry.

It offers tools for managing inventory, supply chain, customer relationships, and financials on a single, scalable platform.

Unlike general-purpose platforms such as Infor or Acumatica, Prophet 21 addresses everyday distributor needs—like multi-warehouse routing, contract pricing, vendor rebates, and split shipments—out of the box, which can reduce the need for extensive customization.

Epicor Prophet 21 Overview

Epicor Prophet 21 is designed to meet the demands of today’s distribution world.

The system has been designed from scratch to tackle the real-world challenges of managing inventory, fulfilling orders, setting prices, and maintaining vendor relationships across various locations.

Supported Industries

Prophet 21 is used by distributors in various sectors, including:

• Wholesale and industrial distribution
• Consumer packaged goods
• Electrical, HVAC, janitorial, and medical supply
• Paper and packaging, plumbing, safety supply, and more

Epicor has made quite a name for itself in the distribution industry.

They boast the trust of more than 40 leading associations and buying groups, such as A-D, CDI, CTDA, DPA, Eaton, FPDA, HIDA, IDC-USA, STAFDA, TUG, NAW, NAED, ISA, and IDEA.

Related reading: DDI System vs Epicor Prophet 21

Purpose in the Distribution Industry

Prophet 21 stands out by offering tailored solutions for each distribution vertical’s unique challenges.

Here’s how Prophet 21 supports leading distribution verticals:

• Industrial Distribution: Advanced inventory management for maintenance, repair, and operations (MRO) items, vendor rebate programs, and vendor-managed inventory.

• Electrical Distribution: Wire and cable management, industry data standards support, and robust rebate tracking.

• Plumbing and HVAC: Dimensional inventory, kit management, and project-based billing.

• Medical Supply: Lot and serial tracking, expiration date management, and compliance tools.

• Fastener Distribution: Attribute-based lookups, units of measure conversions, and bin management for small parts.

Deployment Options

Prophet 21 offers several deployment models.

However, Epicor has noted that they are moving customers toward their cloud-based option and have stopped onboarding new on-prem users:

• Cloud-Based: Deployed on Microsoft Azure for secure, device-independent access from anywhere. Combined with the benefits of Microsoft Azure’s cloud infrastructure’;s stability and security, it is the go-to choice for most distributors.
• On-Premises: For businesses with specific IT or compliance requirements.
• Hybrid: Combine the benefits of both models for maximum flexibility.

Key Features of Epicor Prophet 21

Epicor Prophet 21 delivers a comprehensive suite of features designed to streamline every aspect of distribution operations, empowering businesses to stay ahead in a competitive market.

Here’s a closer look at the core capabilities that set Prophet 21 apart:

Inventory & Supply Chain Management

Inventory management is a crucial concern for distributors, as maintaining optimal stock levels is essential for meeting customer demands and controlling costs.

Prophet 21 offers features designed to support inventory turnover, minimize excess stock, and facilitate effective cash flow management.

The platform offers flexible replenishment strategies and centralized oversight to address inventory across multiple branches.

• Real-time inventory tracking across various locations: Distributors can plan, forecast, and manage inventory levels in real-time across multiple sites, providing valuable visibility.
• Automated demand forecasting: Powered by AI and machine learning, dynamic replenishment methods adapt to business changes, while automated forecasting with seasonal adjustments anticipates demand fluctuations.
• Multi-location visibility and centralized purchasing: Effortlessly manage inventory across warehouses, branches, and distribution centers from a single platform.
• Advanced warehouse management with wireless, paperless operations: Improve accuracy and efficiency through barcode scanning, mobile devices, and automated workflows.
• Manufacturer rep order management: Rather than invoicing the customer directly, P21 allows manufacturing reps to place orders with the original manufacturer and tracks what each manufacturer owes, ensuring timely payments and clear accountability.
• On-site vending solutions with AutoCrib integration: Enables direct access to products at job sites, allowing workers to quickly restock essentials like screws from automated vending machines.
• End-to-end distribution solution: Delivers a comprehensive, ready-to-use distribution solution, while an ERP like NetSuite typically needs extensive customization for distributors.

Order and eCommerce Management

Order information in Prophet 21 is integrated into the system regardless of whether it is entered at the counter, via a mobile device, or through a web portal.

This direct integration speeds up processing and reduces manual entry errors, so your team can focus on delivering an exceptional customer experience.

• Streamlined order management from one screen: Create and convert quotes, expedite orders, check stock, review pricing and availability, view past invoices, and confirm shipping preferences without switching between multiple systems.
• Integrated B2B and B2C ecommerce portals for online sales: Reach more customers and simplify transactions with intuitive storefronts built for both business and retail buyers.
• Real-time order status and history tracking: Keep your customers informed with immediate access to order updates, cutting down on service calls and building trust.

Warehouse Management

Prophet 21’s warehouse management capabilities empower distributors to achieve greater accuracy and efficiency throughout their warehouse operations.

• Seamless integration with core ERP: Epicor’s Warehouse Management Solution (WMS) is fully embedded in Prophet 21, ensuring real-time data flow and smooth coordination between warehouse and business processes.
• Mobile-first workflow design: Warehouse staff can access all essential functions on mobile devices, enabling real-time updates and faster, more accurate task completion.
• Optimized goods flow management: The system streamlines every stage, from receiving and put-away to directed picking and shipping, with guided workflows that boost productivity.
• Guided warehouse tasks: Prophet 21 helps reduce manual errors and speeds up the movement of goods in and out of the facility, by guiding warehouse staff through optimized workflows.

Pricing and Margin Management

Prophet 21 gives distributors the tools they need to maintain profitability and efficiency in challenging markets through advanced pricing and accounting features.

• Flexible pricing management: Easily manage and adjust pricing with a comprehensive matrix for customer and item combinations.
• Contract and project-based pricing: Set special pricing for contracts and projects, ensuring compliance and maximizing profitability for each agreement.
• Powerful margin analysis: Access robust margin analysis tools to ensure optimal pricing strategies and protect profitability.
• Active margin control: Leverage robust margin analysis features to monitor profitability and make informed pricing decisions.
• Streamlined accounting integration: Seamlessly connect pricing strategies with accounts receivable and cash flow management for improved financial health.

Financial Management

The system provides a real-time general ledger, offering access to current financial statements and historical data that support informed decision-making as business needs evolve.

Daily financial reports with drill-down capabilities are available to assist with audits, while multicurrency support is included to help facilitate global operations. The platform also offers tools to automate manual period-end closings, which may help reduce the administrative workload for finance teams.

Accounts receivable management features include tools for tracking outstanding invoices, setting alerts for overdue balances, and maintaining a history of customer communications. Flexible posting methods are available, allowing payments to be applied across multiple invoices or accounts, which can assist in managing AR days and cash flow.

Accounts payable processes are integrated with inventory receipts and purchase orders, supporting efficient check and payment processing. This integration is intended to help organizations manage payment schedules and take advantage of available discounts.

Key features include:

• Real-time dashboards and automated reporting for quick financial health checks
• Tools for budgeting, invoicing, and payment processing
• Integrated tax compliance, AR, and AP management
• Multicurrency support for global operations
• Transaction drill-down and export to Excel
• Online cash collections and ACH check processing
• Automatic invoice reconciliation and vendor invoice reinstatement
• Bank and cash account reconciliation

AI and Machine Learning-Powered Business Intelligence

Prophet 21 stands out from many competitors by incorporating AI and machine learning tools that support demand forecasting and inventory optimization across distribution operations.

Key features include:

• Machine learning-driven demand forecasting and inventory optimization: Prophet 21 learns from historical patterns to forecast demand and provides intelligent inventory optimization recommendations, helping distributors maintain optimal stock levels.
• Customizable KPIs and actionable analytics: Distributors can track the metrics that matter most to their business and turn insights into action.

Looking ahead, the newly announced Epicor Prism AI will help distributors automate their workflows with AI agents.

Distributors can use natural language queries to search through their own data and provide the best answer or recommendation quickly.

Technology and Infrastructure

Prophet 21’s technical foundation is engineered for scalability, flexibility, and integration with other systems. The platform leverages a modern, modular architecture and robust connectivity options to support diverse business needs.

• Modular, scalable architecture: The system is constructed using modern web technologies like HTML5, Angular, .NET, and SQL Server, ensuring it is future-ready and adaptable.
• Cloud-native and mobile accessibility: The browser-based interface enables access from any device with an internet connection, supporting remote workforces and reducing the need for on-premises hardware and IT infrastructure.
• Mobile workflows for real-time operations: Field sales, warehouse staff, and executives can enter orders, check inventory, approve transactions, and monitor KPIs from anywhere, using mobile devices or browsers.
• Third-party integrations: RESTful APIs and pre-built integrations connect Prophet 21 with third-party applications, shipping and logistics services, and other Epicor solutions. EDI capabilities and an open architecture further extend its functionality.

Prophet 21’s modern design and extensive integration options empower distributors to operate efficiently and adapt quickly to changing business demands.

Benefits of Epicor Prophet 21 for Distributors

Implementing Epicor Prophet 21 brings a host of tangible benefits that drive operational excellence, enhance customer satisfaction, and support long-term growth for distributors.

Here’s what sets P21 apart:

Operational Efficiency and Automation

• Reduces manual processes and errors, streamlining workflows: Automate routine tasks to minimize mistakes and free up staff for higher-value activities.
• Faster order-to-ship cycles and improved productivity: Accelerate fulfillment and boost throughput with optimized processes.
• Automated document integration and EDI compliance: Simplify transactions with customers and suppliers for seamless business operations.

Enhanced Inventory Control

• Lower inventory costs through optimized stock levels: Maintain just the right amount of inventory to meet demand without tying up excess capital.
• Minimized stockouts and excess inventory: Keep shelves stocked and customers satisfied while reducing waste and obsolescence.
• Real-time insights for proactive decision-making: Make informed choices quickly with up-to-date inventory data at your fingertips.

Improved Customer Service

Epicor Commerce Connect integration is another feature that takes your customer service to the next level. Manage multiple branded storefronts and inventory, giving your customers a seamless self-service experience while keeping your eCommerce operations fully connected to your ERP backend.

With this tight integration, you can ensure a consistent and accurate order flow, helping you provide responsive and reliable service every time.

• Unified customer view and quicker response times: Access all customer information in one place, enabling you to deliver quick and accurate answers and solutions.
• Real-time product availability and personalized service: Instantly check stock and recommend the best products for each customer.
• Self-service portals and accurate order tracking: Empower your customers to place orders, view their history, and manage their accounts on their own schedule.
• Consistent, branded storefronts: Build trust and loyalty with a professional, user-friendly online presence that reflects your brand across every channel.

Data-Driven Decision Making

• Actionable insights for pricing, profitability, and performance: Use real-time analytics to optimize pricing strategies and boost margins.
• Informed strategic planning with real-time data and analytics: Base your business decisions on accurate, up-to-date information.
• Custom reports and dashboards for tracking KPIs: Monitor progress toward your goals and identify areas for improvement.

Scalability and Growth

Prophet 21 grows with distributors as their business expands.

• Supports multi-location and multi-company operations: Easily manage complex organizational structures as your business expands.
• Easily adapts to business expansion and new units: Scale up without disruption, adding new branches or product lines as needed.

Market Leadership Recognition

Prophet 21 is recognized for its strength in the distribution market, named a Leader in the 2024 Gartner® Magic Quadrant™ for Cloud ERP for Product-Centric Enterprises for the second consecutive year.

This proven track record solidifies its position as a trusted partner for wholesale distributors.

Prophet 21 Pricing and Cost Considerations

Understanding the pricing structure and total cost of ownership for Epicor Prophet 21 is crucial when planning a significant ERP investment.

Here are key points to consider:

• Initial Costs: The upfront investment depends on your business size, selected modules, and implementation needs.
  • For small businesses with basic requirements, initial costs typically range $40-100k with 8-20 users.
  • Mid-market businesses with 20-50 users can expect anywhere from $100-250k in costs.
  • Larger, Enterprise, organizations that need a lot of customization and extra modules should be prepared to go over a $250k price tag for over 50 users.
• Ongoing Costs: A general rule of thumb we use at Conveyance Solutions is that P21 typically costs around $200-$250 per user per month. As the user count goes up, the price per user goes down but we’ve found that businesses of this size often have a need for more Epicor modules and add-ons which increases the ongoing costs.
• Potential Hidden Costs: Beyond the standard pricing, additional expenses may arise during implementation or daily use. These typically come from the time it takes to implement the system, customizations, 3rd party integrations, and other unexpected data migration challenges. The biggest challenge we see from distributors is that they have another job on top of migrating data over so it takes longer to migrate everything in the system over. More often than not, companies fall into the trap of paying for 2 softwares at once, which drags down ROI.

Conclusion: Is Epicor Prophet 21 Right for Your Business?

Epicor Prophet 21 is a standout choice as a specialized ERP solution crafted for the distributors, driving both operational efficiency and business expansion.

Its versatile deployment options, intelligent AI capabilities, and extensive feature set empower distributors to refine their supply chains, elevate customer satisfaction, and make informed decisions based on that data.

Whether you’re a small distributor or a large enterprise with thousands of locations, Epicor Prophet 21 is designed to adapt to your needs and scale with your goals.

Ready to transform your distribution business? Discover the Epicor Prophet 21 software today and join the ranks of industry leaders who achieve operational efficiency and sustained growth.

Frequently Asked Questions (FAQs) About Epicor Prophet 21

What is Epicor Prophet 21 used for?

Epicor Prophet 21 is used to streamline and integrate all core business processes for distributors, including inventory, order, customer, and financial management.

How does Epicor Prophet 21 improve inventory management?

It offers real-time tracking, automated demand forecasting, and multi-location visibility, reducing excess inventory and stockouts.

Is Epicor Prophet 21 suitable for small businesses?

Yes, its modular and scalable design makes it suitable for small, midsize, and large distributors. It’s cloud design also means you don’t need physical servers which typically start around $15k each. This is great for small businesses to get off the ground running without the added hardware costs.

What are the integration options with other software?

Prophet 21 features RESTful APIs, pre-built connectors, and EDI capabilities for seamless integration with third-party applications. Flat file imports and exports to text or Excel files make the data within the system very accessible when users need it. 

How secure is the cloud version of P21?

The cloud version is hosted on Microsoft Azure, offering enterprise-grade security, automatic updates, and compliance features.

What industries benefit most from Epicor Prophet 21?

Distribution, light manufacturing, and any sector requiring robust inventory and supply chain management.

What is the typical implementation timeline for P21?

Prophet 21 implementation timelines vary by business size and complexity but are typically faster with cloud deployments due to reduced infrastructure setup.

Are there training resources for new users?

Yes, Epicor and its partners offer comprehensive training, documentation, and support resources for onboarding and ongoing education.

What does ongoing support look like for P21 users?

P21 users can reach out to EpicCare support from 8am to 8pm local time, which serves as a standard help desk and is included with all new purchases. Epicor also has helpful documentation and the Learning Management System (LMS) for self-guided support and training on their website. Outside of Epicor, the P21 wWorldwide User group (P21WWUG) offers peer-to-peer assistance for a modest annual fee. For more advanced needs, users can schedule billable professional services through their Epicor customer account manager.