Distribution has to overcome new industry and marketplace difficulties to improve operations, optimise stock levels, boost sales, maximise profitability and continuously increase customer service. Below we look at four key challenges facing distribution today.
1. Demand – do you have a clear picture of the marketplace?
Companies in the distribution business have to align their business operations and resources to meet increasing consumer demands worldwide. Having a single, accurate and up-to-date picture of demand will ensure businesses can streamline and optimise its supply chains.
Distributors need to provide organisations with a clear, unified picture of demand. Supply chain partners and managers with access to business intelligence-driven sales forecasts and demand projections can make faster strategic decisions, and scale their operations to match demand.
“We were operational in a few hours with full access from anywhere at a very affordable cost.” – Kim Hulke Imports, Accounting Manager
2. Visibility – can you access real-time inventory?
Distributors know that controlling inventory and purchasing costs leads to better profitability. They need access to inventory data in real-time to drive proactive purchasing decisions, identify slow-moving inventory, and oversee key distribution metrics, i.e. cash cycle and inventory turn.
Increasing visibility and control in the supply chain to access real-time relevant data – even remotely through mobile devices – is vital to minimise inventory costs, increase profits, and measure and improve business performance.
“With Microsoft Dynamics 365 we were operational in a few hours with full access from anywhere at a very affordable cost,” said Kim Hulke, Accounting Manager at Sachez Imports.
3. Collaboration – can you coordinate with suppliers and customers?
The distribution industry relies on business speed, data accuracy and trusted partnership collaboration for business success. Maintaining strong relationships with suppliers and customers through integrated solutions is both a cost and a competitive advantage.
Distributors can better coordinate operations by implementing a properly integrated system that is easy to access, can automate processes to replace manual tasks and prevent errors and delays, and enhances communication between stakeholders.
4. Growth – are you positioned for evolution and improvement?
Distribution companies need to make provision for growth in operations and customer demands, as well as continuous improvements in customer service to meet increasing market competitiveness.
Getting customer service right is a prerequisite for sustained business growth. Investing in an integrated system that addresses lead-time data accuracy, quality control, speed of delivery and customer contact ensures future orders and growth potentials.
Decision Inc. Immix can help you increase visibility across your supply chain and gain greater control over your purchasing processes.
Integrate. Automate. Grow your business faster with Dynamics 365 Business Central and Decision Inc Immix.