According to Tracey Heinz or RDXsports, there are 4 key challenges facing modern distributors. Globalization and technological trends allow manufacturers and retailers to rely on their own distribution networks. How are distribution companies expected to sustain profitability? We will address the challenges mentioned in this article in a condensed format. There’s no denying that companies are required to keep up with changes in the digital transformation space. Getting your company tech-savvy may seem like a huge undertaking, but the whole process of digitalization is actually much simpler than you may think. And it can help distribution companies tackle the challenges outlined below.
Inventory Management and Disintermediation
Inventory Management as a “complex problem” is a thing of the past. SAP Business One Cloud will help you manage your inventory by bin location, warehouse, etc. so you can keep the most accurate records on hand. With the mobile app, you can very conveniently access this information in real-time and on-the-go. These statements are an oversimplification of the solution. For more information, click here and contact us.
SAP Business One is so much more than a simple inventory management software though. Since it’s one solution that covers inventory, purchasing, sales, HR, finance and more business functions, it aims to reduce a company’s total cost of ownership; thereby allowing companies to invest in more innovative and strategic growth. Distribution companies can benefit from this significantly as they’d be able to offer retailers competitive prices with more value (services, etc. that they offer).
E-commerce Takeover and Demanding Customers
Times are changing. More businesses are moving online. Millenials, who grew up on technology, are changing the standards for how business is conducted. Amazon, for example, has taken out many brick and mortar establishments. Distribution companies would need a solid e-commerce solution to effectively compete in today’s marketplace. If companies are unable to adapt to the shift in the way business is done, they will struggle to differentiate themselves with their competitors. Having a customer friendly storefront is just the first step to competing with other distributors. Our solution “iStratCommerce“ will ensure you are presenting your best-self online and provide the integration with your back-end ERP to streamline the sales and inventory management processes.
This is an oversimplification of the value that can be derived from integrated software solutions like SAP Business One and iStrat Commerce. For more information, contact us or book a demo today!