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Wholesale distributors occupy a middle position in the supply chain between manufacturers and secondary distributors or retailers for a wide range of products & services. This presents challenges to profitability for wholesalers. In this competitive marketplace where supply networks are becoming highly complex and customers are looking for more choices, faster fulfilment, and lower prices-wholesale distributors are finding themselves squeezed between the two of them. Not only this, they have to overcome many challenges in today’s business environment.
They face competitive pressure to maintain low price level and increase volume, making them lookout for ways to improve margins and grow their revenues constantly. They need to focus on reducing operating expenses and cutting costs throughout their entire process from delivery to payment. It is important for them to manage inventory more efficiently and integrate more of their clients and suppliers. They have to accurately manage their stock, and maintain prices to enhance revenues. It is also important for them to service their customers to the highest level to meet their ever-changing expectations.
Wholesalers need to provide custom products & packaging for the diverse range of customers. A growing number of items also add complexity and cost to inventory management. Along with that, due to increased global competition, retailers demand faster services and lower prices along with additional requirements like Radio Frequency Identification (RFID). Wholesale distributors also carry on their businesses across various countries, thus adding complexity of dealing in multiple currencies, languages, market expectations and regulations. This makes it difficult for them to meet clients’ requirements while still being profitable.
To survive in this competing market and pressured supply chain position, wholesale distributors need to control the already tight margins by enhancing efficiency and eliminating waste. Still there are many of them, who find themselves hindered by manual processes, information delays, stock-outs or excess inventory. They thus require a single integrated solution to manage their entire business to get visibility into sales orders, warehouse inventory, financial functions, and logistics to reduce carrying costs and increase margins.
SAP Business One delivers a single system that incorporates all the functionality, wholesalers and distributors need to run their business with – finance, banking, sales, manufacturing, customer relationship management, purchase, stock control and warehouse management. It is a cost-effective solution that helps to improve business processes and reduce costs. The solution helps the wholesale distributors to integrate processes, streamline information flows and provide easy access to critical business information, thus facilitating better decisions and improved operations.
As all of the required functionalities are there in one system, business operations become seamless and delays & errors are eliminated. In addition, it gives access to up-to-date critical business information in a single system to users of different hierarchy. This leads to enhanced productivity, faster processing and improved business visibility. Wholesale distributors can even increase their e-Commerce sales and improve customer service by providing on-line access to order status and real-time inventory updates. There is an increased collaboration through better integration with suppliers. Wholesale distributors can thus maximise their margins by controlling costs, gain an accurate, real-time view into all transactions and offer cost-effective and profitable value-added services.