How can ERP make wholesale distributors a stronger link in the supply chain?


Companies in the wholesale distribution industry act as the link in the supply chain between manufacturers and retailers. Any weaknesses in that link are going to have serious consequences.

Whether the goods you are handling are durable or non-durable, industrial or consumer, wholesale distributors have an important role to play in getting products from the factory floor to the final user. You may only be involved with storage and shipment to the retailer or your role may include customisation and repackaging to meet with a client’s requirements. Whatever the specifics, your basic needs will remain the same; maximising productivity, improving efficiency and increasing customer satisfaction.

SPOTTING THE WEAK LINKS

Wholesale distribution faces a number of issues which, if left unchecked, could create weaknesses in the supply chain.

The margins that wholesale distributors are able to work with are reducing due to increasing global competition and customers demanding more choice, faster fulfilment and lower prices. With the cost of buying a product going up and the price a customer is prepared to pay coming down, covering overheads, let alone staying profitable, is becoming more of a struggle.

One answer is an Enterprise Resource Planning (ERP) solution. If you don’t already have one, you probably need one. And if you do have one, you may need to consider replacing it for one that can keep up with your ever-changing business needs.

WHAT WILL WHOLESALE DISTRIBUTORS GAIN FROM INVESTING IN ERP?

Let’s not forget that every business is unique but most will be experiencing a few of the following issues when it comes to profitability and performance.

  • Meeting the demands of the supply chain from manufacturers and retailers
  • Faster fulfilment of orders and the processing of new orders
  • Tracking deliveries in and out of the warehouse
  • Delays due to a lack of communication between departments
  • Inefficient shipping processes
  • Lack of ability to spot future trends
  • Excess stock and waste
  • Complications with warehouse layout

If you are experiencing any or all of these issues then you should seriously consider a new ERP system. If you’ve got any doubts as to whether it can benefit your business, hopefully this will help.

HERE’S HOW ERP CAN HELP YOU INCREASE PROFIT AND ACHIEVE GROWTH

ERP business management software delivers integrated functionality to support all your order entry, inventory, warehouse operation, fulfilment, shipping, and financial management needs, so you can get goods to customers quickly and profitably.

ERP software also offers wholesale distributors the ability to automate manual procedures, improve replenishment decisions, process orders quickly, improve customer satisfaction, and gain quicker access to business performance information.

Ultimately, a good ERP system or supply chain management software will help you to connect people, processes and information throughout your business, strengthening your link in the supply chain even further.

 

Article written by Mark Blackmore, Head of Telemarketing at QBS Group


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