The key factor for any distributor is having the right product available for sale in the correct quantity, at the right time and place, at the right price and cost. Any flaw in meeting this objective may result in loss of business, lost customers and added costs. True visibility is key in achieving high availability and efficient distribution management.
Accurate inventory data across the entire organization is a must to effectively create proactive, responsive replenishment operations and minimize inventory costs. To remain competitive, distributors should know:
A truly automated and integrated distribution system delivers visibility and control of the entire supply-side cycle of requisition management and approval, purchase order management and approval, inventory tracking and control, warehouse management, and picking and shipping management, removing the need to reenter and reorganize data between systems, and reducing the risk of errors.
Poorly integrated systems, collections of applications from different suppliers tied together through outside links, manual databases and spreadsheets uploaded through manual processes – these approaches cannot deliver the comprehensive coordinated visibility and control that you need to effectively manage distribution.
A 2015 Aberdeen report, “What Has Changed in Wholesale Distribution: 2015 & Beyond,” revealed that distribution market leaders invested twice as many resources in technology than their less-successful competitors. The report emphasized the need to change processes and invest in technology:*
