5 Secrets of the Most Successful Wholesale Distributors
Success is the lock that every wholesale distributor is searching to find the key for. We all want to be successful, but sometimes that can't always be a reality. When it comes to succeeding in an industry with so much competition, how do you stand out against your competitors? Luckily your Chicago based Acumatica and Dynamics GP partners at Logan Consulting know a thing or two about what makes a wholesale distributor run effectively and are here to share 5 secrets that all of the most successful wholesale distributors have in common to help your distribution company grow.
Secret #1: Eliminate Complicated Manual Processes
While there is something to be said for manually managing your inventory, purchase orders, sales orders, analytics and scheduling these activities take a lot of time to manage and can often limit your business's potential for growth. Manual processing can make it very difficult to fully view the entire picture of your organization and the significant time and effort that you spend creating these manual processes could be spent improving other aspects of your organization. Automated ERP software is so crucial for any successful wholesale distribution business. By automating your otherwise timely manual processing, you are opening up the doors to future success. Especially with the increased availability of mobile technology that allows you to access whatever information you need whenever and wherever you may be. Want to learn more about how automated wholesale distribution software can help streamline your business? Check our article titled 5 manual processes to eliminate at your distribution center for more ideas on future success.
Secret #2: Know your Inventory Inside and Out
You can't run a successful and profitable wholesale distribution business without having a good understanding of your stocked inventory. Knowing what products to prioritize and when the right time to make purchases are is crucial. Set up a structured and organized inventory process so that you are only restocking when you need to and aren't losing money in your stocked inventory during holiday seasons, rush orders or naturally high/low sales times. Wholesalers who create a well running and potentially automated MRP processing are the wholesalers that succeed. Be sure to constantly taking part in regular inventory counts, track incoming/outgoing inventory and coordinating levels with fluctuation in demand for the most success.
Secret #3: Don't Skimp on Customer Service
Even for wholesalers, customer service is a huge aspect of any distribution organization and shouldn't be overlooked by other business processes that you may deem more important than others. Delivering exemplary customer service is the quickest way to establish a loyal consumer base despite the fact that your competitors may be offering a cheaper product. Taking into account customer complaints and compliments to better your business you make them feel valued and in return they will value your services. If your customers are confident that you will place and ship their orders in a timely and effective manner, are flexible to their needs, and transparent in your business processes they will appreciate it and stick by your side. Integrating your CRM and ERP systems like Microsoft Dynamics CRM and Dynamics GP can help simplify this process. Developing loyal customers is a huge secret of successful distributors that is often overlooked. If you can master this aspect of your wholesale distribution center you are golden.
Secret #4: Stay Aware of Your Cash Flows
Staying aware of your current cash flows is extremely important for wholesalers looking to succeed. Be careful not to overextend credit to customers or give in to extended payment plans. Making money is the name of the game in the world of business and as much as you may want to give your customers the benefit of the doubt, being diligent about collecting receivables is important to your organization's success. Stay aware of your financial standing by producing regular reports to see just what cash availability you have at the moment as well as current sales, projected sales, etc. so that you are never blindsided by a lack of data.
Secret #5: Streamline Order Processing and Fulfillment
Our world today is all about having the biggest and the best all at record breaking speeds. Customers appreciate quality and efficiency when placing their orders which is why it shouldn't come as a surprise that wholesalers who deliver timely orders are favored over their slower but equally qualified counterparts. In order to fully succeed in today's market, it is important to digitize and automate order processing to increase efficiency and ensure customer satisfaction. Now this isn't to say get careless to get orders out quickly, but being able to take out the unnecessary steps that sometimes come along with order processing is extremely beneficial for your wholesale distribution business in the long run.
For more information on how to more effectively run your wholesale distribution organization through the use of ERP or CRM software systems like Acumatica ERP, Microsoft Dynamics CRM or Microsoft Dynamics GP, contact Logan Consulting your Chicago based Microsoft and Acumatica Partner to schedule a consultation or a demo.
2020 Nucleus Research Report on ERP Technology