Distributors Must Balance and Respond to Many Challenges
Wholesale distributors must balance a number of challenges including:
- Meeting fast changing customer requirements and demand.
- Growing and managing diverse and complex product inventories.
- Monitoring and managing margins in the face of higher costs and reduced selling prices.
- Dealing with fluctuation and variation within the global supply chain.
- Addressing channel disintermediation (Read “The Elephant in the Room: Disintermediation“).
These challenges also offer opportunities to gain market share and increase revenue. Forward thinking companies will leverage changes to move ahead of the competition using tools that integrate business systems and provide visibility across the full scope of distribution business. The right tools enable collaboration through information-sharing for smart, fast decision-making to gain the edge in this competitive environment.
An established distribution business certainly has processes in place for inventory control, sales order fulfillment and purchasing. Savvy business leaders know it’s important to adapt new processes and technologies in order to meet marketplace changes and competitive challenges. They are willing to adopt new tools and techniques to exploit opportunities and improve performance.Show Next
A 2015 Aberdeen report, “What Has Changed in Wholesale Distribution: 2015 & Beyond,” revealed that distribution market leaders invested twice as many resources in technology than their less-successful competitors. The report emphasized the need to change processes and invest in technology.*
- “Leaders are saying goodbye to manual processes by investing in automation at twice the rate of followers.”
- “These leaders are using automation to provide integrated workflows and collaboration to all parties in the demand-to-fulfill network, across each inventory and fulfill/deliver stream.”
Today wholesale distribution software is well within reach for all sizes of businesses. Distribution companies can decide to purchase their system or choose a pay-per-use (Software-as-a-Service or SaaS) monthly subscription fee. Similar choices are available for computer hardware and infrastructure; either owned on-site or a through a cloud/SaaS option.