Distribution

Wholesale distributors occupy a middle position in the supply chain between manufacturers and secondary distributors or retailers for a wide range of durable and non-durable goods, industrial goods, and consumer products. This positioning presents unique challenges to profitability. In today's competitive global marketplace- where supply networks are becoming increasingly complex and customers demand more choices, faster fulfillment, and lower prices- wholesale distributors often find themselves squeezed from both sides.

Increasingly, satisfying diverse customers means providing custom products and packaging. A growing number of items and SKUs (stock keeping units) can add complexity and cost to inventory management. At the same time, global competition means that retailers can, and do, demand faster service, lower prices, and compliance with requirements such as radio frequency identification (RFID). Finally, companies of all sizes conduct business across international borders, which adds the complexity of dealing with multiple currencies, languages, market expectations, and regulatory requirements. As a result, many wholesale distributors struggle to meet customer needs while still turning a profit.

To survive and thrive in this pressured supply chain position, a wholesale distribution company needs to control already tight margins by increasing efficiency and eliminating waste. Yet many distributors find themselves hindered by manual or disconnected processes, information delays, excess inventory, and purchasing information that's locked in the minds of individual employees. The good news is that technology can help by integrating processes, streamlining information flows, and providing easy access to the information required for confident decision-making and operational improvement.