Realizing the Growth of Wholesale Distribution

Posted on: September 4, 2014 | By: Jim Bertler | Acumatica

Acumatica’s cloud ERP system is packed with features fitting to many industries. Yet, what can Acumatica do for companies involved within wholesale distribution? One great aspect of Acumatica’s comprehensive product suite is a segment specifically catered to distribution management.                      

The wholesale sector involves wholesale distributors that deal with both durable and non-durable goods, with each distributor likely focusing on a few specific products. Leading categories of durable goods include professional and commercial equipment, motor vehicles and parts, machinery and electrical goods. Leading categories of non-durable goods include groceries, drugs, and petroleum products. Within each wholesale distribution company, a variety of operations must be maintained. These operations typically consist of merchandising decisions, warehouse inventory management, purchasing from manufacturers and other suppliers, product transportation and distribution, and providing various types of customer services.                                                                                                                  

One can see that wholesale distribution covers a wide range of categories, and within this wide spectrum are a variety of different emerging opportunities. Recent studies done by Hoover’s/D&B Subsidiary First Research, have proven that the wholesale distribution industry is rapidly growing every year. The output of the wholesale industry is forecast to grow at an annual compounded rate of 5 percent between 2014 and 2018 with an industry growth rating score of medium.  Compared to other industries, revenue growth for distributors have been above average.  Over the past decade, distributor revenue has grown to nearly 55 percent, while retailers have grown to only 40 percent.  Not only is there a major increase in industry revenue, labor productivity has increased as well with industry wide labor productivity increasing 30 percent between 2001 and 2011.                                                               

Whether you are a wholesale distributor, or just have an interest in the industry, it is important to realize the rapid growth and potential the wholesale distribution industry has.  It is clear to see that as this growth continues, wholesale distributors need a cloud ERP software that will entirely fit their needs. Acumatica’s distribution suite can give wholesalers the security and innovation they need to move forward. To hear more about Acumatica, contact Logan Consulting a Chicago based Acumatica partner, today. 

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