Distributionand Distributor Challenges
Each industry has its unique struggles and challenges. It’s the nature of business.
The first step to solving those issues is to identify what could potentially be hurting your company.
The supply chain is a complicated place with changing inventory requirements, narrow profit margins between manufacturers and customers, long lead times, unpredictable supply in relation to demand, and competition at its highest.
Four critical issues distributors face today…
Maintaining profitability: It’s a competitive world and staying profitable is ultimately the way to sustain successful growth. Variables that impact cost-effectiveness include everything from supply chain management to customer relationships to financial management. If there is no cross-functional connection, there could be major gaps affecting your profitability.
Supply and demand planning
Supply and demand planning: Just like the weather, supply chain planning can be a hit or miss situation but technology has helped supply planning immensely. If you’re financing needless or obsolete inventory due to poor forecasting, your business could be on the line.
Delivering value-added services
Delivering value-added services: Small to medium sized distributors struggle to offer the same value-added services as the bigger competitors. Setting yourself apart is important, but how can you even think of investing in new services when employees are too busy managing vital day-to-day operations?
Optimizing inventory: Insight into and control over your inventory isn’t as easy as it sounds. When you do have a complete end-to-end view, you can start forecasting trends that allow you to optimize the inventory in stock and streamline order fulfillment.
- Supply chain visibility
- Operational effectiveness
- End-to-end integration of processes
- Electronic product codes (EPCs)
- Radio Frequency Identification (RFID)
- Inventory control
- Business intelligence on status of the KPIs
- Material demand forecasting and replenishment
- Mobile technology capabilities in the warehouse
Are Distributor Challenges Weighing You Down?
Are you checking multiple systems daily to get a sense of inventory stock levels only to realize you made a manual miscalculation…again?
Are employees frustrated with over-promising customers due to bad operational and logistics data?
Are your customers unsatisfied with the time it takes for you to answer questions and fulfill an order?
Do you find it near impossible to forecast and identify trends so you can gain an advantage over your competition?