Since the profit margin, especially on individual sales, has narrowed over time, most wholesale distributors rely on high-volume transactions to generate revenue. If you’ve also adopted this strategy, it’s imperative to make sure that you can handle a large volume of database records, across multiple dimensions, accurately and efficiently in order to not only meet client demands, but also quarterly goals.
You might have already discovered that a modern wholesale distribution management system requires the incorporation of an Enterprise Resource Planning (ERP) software solution. If so, you might also have some reservations about the benefits--especially considering what you'll have to fork out for implementation.
Luckily, wholesale distribution software solutions not only pay off, but also continue to keep your operations in check. This means that management will have full control over future operations--giving your business the power to make profitable decisions for years to come.
Seven Reasons to Invest in an Automated Distribution System
With increasing competition dictating tougher economic conditions than ever before, more and more wholesalers are asking the same question: how can they lower operational costs and establish a new competitive advantage, while continuing to meet the ever-changing customer demands? If you’re also asking this question, you should know that there’s only one answer: a wholesale distribution system. Although integrating a modern distribution management system into your business requires substantial upfront costs, investing in an ERP will enable your organization to:
- Comply with the Latest Business Trends: Wholesale distribution software allows you to respond effectively to all industry trends in an opportune manner. This is possible because you can use ERP software to consolidate acquisition and distribution methods, increase the number of new demand-driven channels, opt for new profit models and business practices, and create deeper relationships with both customers and suppliers.
- Keep Track of Inventory: This system permits you to access updated stock balance whenever you please, making reliance on physical inventory counts a thing of the past. More importantly, inventory planning software, such as Microsoft Dynamics AX, not only alerts and notifies key personnel when stock levels decrease, but these levels are also synced with a supplier management system, allowing for automated fulfillment. Keeping track of inventory is a cornerstone of effective wholesale distribution management. Putting this in your hands also gives you control over your profit margin.
- Operate Faster than Before: Physical counts and Excel spreadsheets versus a customized ERP system is like comparing an El Camino to a Porsche: meeting modern business demands and remaining profitable require a modern technology solution. Modern ERPs equip management with dashboards containing real-time data for smart and fast decision making. Janice in accounting no longer has to crawl through a maze of file cabinets in order to match orders with invoices. Streamlining these processes not only cuts obsolete tasks by a third, but also allows your team to focus on more important items like growth and profits.
- Complete Different Tasks Accurately: Keep all the wheels of your business turning by automating and synchronizing processes via an ERP. By using automated distribution software to perform different jobs, monitor distribution, and analyze specific business aspects, you can choose the most profitable opportunities for your business.
- Offer Management In-Depth Details: Although an efficient distribution system can help you sell your products, product information is what ties accurate execution and purchases together. Dynamics AX wholesale distribution modules are capable of keeping track of this data and enable your team access to all product information. Put product descriptions, warranty terms and conditions, and shipping details at your organization's fingertips.
- Get Up-to-Date Data: Modern ERP systems not only update data automatically, providing current details about the condition of your orders, but also permits you to intervene in the distribution process in order to solve probable concerns at the earliest possible time. All of this information can be viewed from a customizable dashboard available with software systems such as Dynamics. Choose what data you'd like to see live and gain control over previously unavoidable incidents.
As you can see, wholesale distribution software solutions, such as Microsoft Dynamics AX, have been designed to help you deal with challenges specific to your organization. A truly great aspect about Dynamics ERP is that it can assist you in meeting and exceeding the needs and expectations of your clients. To sum it all up, the most essential reason why you should opt for an automated distribution system is that it can help you achieve customer satisfaction--the secret to business success.