Wholesale distribution companies operating in today’s fast-paced and dynamic environment must stay competitive. One of the primary ways of achieving this is with the assistance of technology. Progressive distributors consistently seek tools that boost production and inventory accuracy while also eliminating errors. Therefore, tools like inventory management software bring agility and impressively streamline supply chain processes.
With distribution (inventory) management software, a distributor will be able to make any of these moves to preserve revenues and market share as well as boost productivity:
- Expand into new geographies (e.g., Through acquisition and multi-branch operations).
- Overhaul your e-commerce approach to sell more online.
- Take on new product lines and supplier partners.
- Create more robust alignments with your suppliers and customers.
- Develop a “learner” inventory approach (i.e. one that reduces inventory levels while minimising stock-outs).
- Find new ways to drive costs out of the distribution process.
Achieving these and other goals can be easier and less costly when adaptable and efficient inventory management software is adopted.
Addressing pain points with a distribution inventory system
Keeping inventory levels balanced is vital for a business to stay profitable, so technology that helps companies take complete control of their stock is essential. That way, companies have the products to deliver to customers while limiting under and overstocking. Companies tend to procure too much and carry the costs while their levels of obsolete inventory increase. To curb excess inventory or avoid wasteful processes, manufacturers and distributors are examining their inventory turnover and coming up with strategies that satisfy customer demands while on the other hand, reducing the risk of:
- high inventory costs
- risk of loss
- stock duplications
- inflated storage costs
- manual documentation
- inconsistent tracking and inaccurate data
- limited visibility of inventory
Either isolated or combined, the problems described above can add up to substantial financial losses. However, companies can mitigate them all by adopting an inventory management software that enables high levels of inventory visibility.
Solutions to overcome inventory management challenges
An efficient and agile inventory management software ensures a well-oiled supply chain; therefore, investing in such a system has a great return of increasing productivity and profits. Moreover, ensuring that products are available to meet customer demand ultimately results in customer satisfaction. Ensuring that a company has accurate inventory counts assists with preventing stockouts and backorders as well as the ordering of stock.
The future of inventory management
Globalisation, technology, and informed consumers are transforming inventory management in businesses. Supply chain operators will utilise technologies to acquire meaningful insights, predict anomalies in logistics costs and performance in advance, and pinpoint opportunities for automation to bring about considerable scale advantages.
Embracing the future
Leveraging technology for meaningful insights is the future, as well as predicting anomalies and embracing automation for considerable scale advantages. The bottom line is that to thrive in this dynamic environment, distributors must implement cutting-edge inventory management software within their business.
This isn't just about managing inventory, it's about mastering success. The future belongs to those who can adapt, innovate, and leverage technology. By having an efficient inventory management solution, distributors solve challenges such as high inventory costs, fluctuating inventory turnover, over-duplication, errors in reporting, and overall additional costs that affect business strategy.
