Wholesale Distribution is an established, complex and dynamic business where distributors must balance a number of competitive challenges, including:
From a different perspective, challenges like these also represent opportunities to gain market share and increase revenue. Global competitors are aware of this, and they are responding.
To stay ahead of the competition, it will be critical to implement tools that integrate business systems and provide visibility across the full scope of distribution business. Tools are not the only element, but the right ones can empower collaboration through information-sharing, as well as enabling smart, fast decision making to gain the edge in this competitive environment.
If a distribution business has been established for some time, it likely has established processes in place for inventory control, sales order fulfillment and purchasing. There is always the option to continue with current processes and systems, but true business leaders will know it’s important to question the status quo in order to meet the competitive challenges from other distributors. Are the existing systems the best way to meet these challenges, including offshore distribution models, as well as disintermediation of the current channel?
Learn more about the three major initiatives to improve wholesale distribution operations:
An Aberdeen report from February 2015, titled: “What Has Changed in Wholesale Distribution: 2015 & Beyond,” compared leaders in distribution against the rest of the pack. The results of the study showed that the market leaders invested twice as many resources in technology than the less-successful competitors. The report explored the need for distributors to change their processes and invest in technology in 2015.*
While small, midsize, and large-scale distributers have some different needs according to size, implementing wholesale distribution software is well within reach for all. The cost to implement highly flexible and fully-functional software has been sufficiently reduced over the last decade, especially with Cloud and SaaS service availability.
Distributors can choose to purchase or pay a monthly subscription fee for software, and they also have the option to invest in onsite hardware and infrastructure, or choose a SaaS option supported in the cloud.
Distributor of over 10,000 healthcare products upgrades from Quickbooks and reduces order processing time over 30%.
350 employee active ware distributor replaces legacy system with Acumatica and achieves ROI in less than 9 months.
Distributor of children’s toys more than doubles order entry productivity by quickly and easily integrating to existing website.
* From the Aberdeen Group’s February 2015 report “What has Changed in Wholesale Distribution : 2015 and Beyond” by Bob Heaney, Research Director, Supply Chain, Wholesale and Retail Practices.