5 wholesale distribution hacks for increased delivery responsiveness
Responsiveness is a critical factor for winning businesses in the wholesale distribution industry. Being able to process orders on time and efficiently can make or break a wholesale distribution company no matter what the vertical market focus is – from basic commodities to advanced technology components.
According to research from the Australian Bureau of Statistics, the wholesale trade industry’s EBITDA has grown by eight percent from 2015 to 2016.
Due to such strong growth and also given the increasing level of competition in the market, wholesalers must focus on differentiating their offerings to create further value.
One of the key differentiators for such businesses is responsiveness.
Better delivery responsiveness and tracking: The Holy Grail of wholesale distribution
Here are five ways wholesale distribution organisations can enhance inventory management capabilities and increase delivery responsiveness in order to outperform their competition:
- Inventory and distribution management in real time. Wholesale businesses need an integrated set of tools to manage single or multiple warehouses and tack items in real-time. This is key to enabling the efficient fulfilment of orders without causing a surplus of inventory.
- Tracking and costing of inventory. Does your inventory management process enable tracking of both serial and batch numbers? If not, you are missing out on a great opportunity to enhance efficiency and reduce processing time.
- Streamlined picking and packing. Create pick lists to identify and pull items from the inventory faster and more accurately. With the right inventory management process in place, you should also be able to set up automatic alerts to notify the Purchasing Manager of a low level of stock.
- Smart planning of materials and inventory levels. Material Requirements Planning or MRP is a brilliant functionality available to manufacturing and distribution businesses. An MRP enables you to maintain the optimal production plan and to create an accurate picture of your production and supply chain.
- Warehouse reporting and Business Intelligence. Most successful distribution businesses are able to generate a comprehensive set of reports for their warehouse, inventory and production. This enables your organisation to take a comprehensive look at key indicators and make informed decisions, proactively.
Real-time inventory management and tracking, streamlined picking and packing, smart planning and Business Intelligence are only some of the key aspects of a ‘smart’ distribution business.
Embracing new and innovative applications to run a more efficient business is the key to creating value for your customers and differentiate yourself from the competition.
Leveraging existing technologies to run a more efficient warehouse means your business can increase delivery responsiveness and maintain a better finger on the pulse of its operations.
Want to uncover hidden cost savings in your inventory? Take a look at our guide here.