Gold Certified Acumatica Partner Dynamic Tech Services reflects on why traditional inventory management software techniques eventually fail wholesale distributors and explores how Acumatica cloud ERP and the Acumatica Cloud xRP Platform deliver a one-of-a-kind inventory control solution.
When your wholesale distribution business was small and just starting out, you were able to get by with simplistic, traditional forms of inventory management. However, now that your company is more successful, you’ve come to the point where you need more. It’s time for inventory management software that gives you true inventory control.
True inventory control requires a workable balance between receipts (inventory coming in) and issues (inventory going out), but maintaining this balance can be complicated, and you must handle this balance while running your business at top speed.
After all, speed is the name of the wholesale distribution game these days. If you can process orders faster, gain insight faster, and customize your cloud ERP to do anything you want—faster—your business will be prepared to navigate the evolving industry, no matter what comes your way.
Read on to learn about how true inventory control works, discover how inventory control can free you from obstacles and slowdowns, and find out how one wholesale distributor was able to grow their business by choosing a system that would evolve with their changing needs.
Inventory Management: The basics
When starting out, wholesale distributors often use traditional, manual systems for inventory management. These systems include:
- Order-point, which is a system in which a purchase order is automatically placed when the number of units on hand of an item falls below a certain level
- Two-bin order point (AKA “Kanban”), which relies on two containers: one for your main supply and one for your reserve. Once you start using the reserve, you must replenish.
The initial attraction to these systems lies in their simplicity, but, once your inventory becomes more complex, you need a system that can handle increased complexity. In short, you need a distribution ERP system (check out Acumatica’s free distribution management system checklist to compare Acumatica with three other vendors) that can evolve with you by providing true inventory control.
What is true inventory control?
Effective, true inventory control results in better inventory cost management, improved customer satisfaction, a higher fill rate, and increased profitability with less stress and hassle. However, it can be hard to tell when your company has reached the point when you need better inventory control.
Do you need a better inventory control solution? See if the following story sounds familiar.
As a rug importer and wholesaler delivering lower-cost, high-quality, machine-made, gorgeous Turkish rugs to the world’s most massive retailers, Tayse Rugs created a wave in the industry that led to exponential growth for their company.
As orders climbed from one hundred per day to thousands per day, Tayse knew they needed to make a change in how they handled their inventory. (Read the Tayse case study for more details.)
By using Acumatica’s modern cloud ERP solution (implementing Acumatica Financial Management and Acumatica Distribution Edition) and working closely with us, Dynamic Tech Services as their Acumatica Partner, Tayse Rugs was able to tap into a range of inventory control benefits that helped them not only keep up with their growth, but pull ahead.
Acumatica cloud ERP provides:
- Accurate tracking across multiple locations
- Support for picking methods (FIFO/LIFO)
- Lot & serial number tracking
- Expiration date management
- Inventory valuation assessment
- Automated data collection and integration
- Replenishment management
In their own operations, Tayse integrated their cloud ERP with flexible EDI (Electronic Data Interchange) in order to ease transactions with big-box retailers, and they increased efficiency using the in-depth insight from Acumatica’s easy-to-use dashboards and intelligence integrations.
Yet, one of the main reasons Tayse Rugs chose Acumatica is because the cutting-edge cloud ERP offered them unmatched freedom with their open platform.
The open Acumatica platform
When you use Acumatica, you’re not simply using an ERP “system,” you’re harnessing the power of the entire Acumatica platform, known as the Acumatica Cloud xRP platform. The Acumatica Cloud xRP Platform makes it possible for Acumatica users to limitlessly modify the ERP in virtually any way imaginable.
Tayse Rugs leveraged the Acumatica Cloud xRP Platform to develop a 100% unique warehouse management system (WMS) that perfectly fit their needs.
“One of the best things about Acumatica is how customizable it is… Acumatica comes with a framework, but they let us stretch and change it, so it works for us, the way we need it to.” That openness and flexibility “is very, very rare.” – Taylan Sevimli, Business Development Manager, Tayse Rugs
Acumatica: Pushing the envelope with their ERP, their platform, and their philosophy
The fully customizable Cloud xRP Platform isn’t the only cutting-edge aspect of Acumatica. The cloud ERP is also driving some of the industry’s most exciting tech advances for the midmarket.
With Acumatica ERP, businesses can count on a unique resource-based usage model that allows for unlimited users. Each of those users are free to become Acumatica experts, simply by leveraging Acumatica’s comprehensive, free, and openly available training opportunities:
- The Open Universitylets you download a copy of Acumatica for free, install it locally, and then go through hands-on training at your pace.
- The regional user group support communities offer a wealth of local resources your company can tap into. Current groups include the Rocky Mountain user group, the Southeast user group, and the recently formed Pacific Northwest user group.
- The Acumatica Help Portal is an Acumatica-run site where anyone can pose questions and get on-demand answers in an organized, easy-to-read knowledgebase.
For forward-looking businesses, these training opportunities are likely to come in handy. Since nearly 75% of Acumatica employees work in R&D, the ERP team is always adding more high-tech functionality to the flexible solution.
This year thus far, Acumatica has implemented machine learning (ML) into ERP search functions, and they continue to integrate external technology into Acumatica, including Microsoft’s HoloLens, Amazon’s Alexa, and camera drones.
But what does all this have to do with inventory control at your wholesale distribution business?
Well, that’s up to you…
Grow smart with a smarter system
By this point, you’re an expert at running your company. You’ve spent years successfully managing your inventory and operations, and you know your business.
You’re smart about the changes in the industry, and you know that, right now, the old systems that used to work so well for you are now holding you back from where you could be.
At this very second, the wholesale distribution industry and wholesale distribution software are changing rapidly, and the changes aren’t slowing down. How will you combine your in-depth business understanding with a completely customizable inventory control ERP solution that you can use to build your company any way you want? How will you free yourself from the obstacles that are slowing you down?
You need THE flexible cloud ERP so you can stay up to date with trends and changes—and pull ahead of your competitors. Acumatica’s flexible solution and your certified Acumatica Partner, who is fully trained and supported by the Acumatica Partner Program, can transform your ideas into reality.
Start planning for your future when you download the White Paper, “Four Strategies for Smarter Inventory Control,” and discover how you can transform your inventory control processes with minimal effort and maximal return.
Since 1996, Dynamic Tech Services has been helping companies across a wide range of industries discover the benefits of ERP. As an Acumatica Gold Certified Partner, our team of experts, including two multi-year Acumatica MVP award winners, focuses on helping our Acumatica Cloud ERP customers use modern technology to compete at a high level with a lower cost of ownership. We began working with Acumatica Cloud ERP in 2011, making us one of the most senior partners in the world. Hear from our customers about our services and read our Customer Case Studies, and then contact us to get your organization moving in the right direction. To learn more, call +1 (800) 818-0574, email email@example.com, or visit www.dynamictechservices.com.