Six Ways to Reduce Expenses in Wholesale Distribution

If your business engages in wholesale distribution, maintaining efficiency while reducing expenses is an important pursuit.

While it’s too late to make big adjustments to your enterprise resource planning (ERP) and distribution systems in time for the end-of-year-spike, the lull that can follow as the new year starts is a great time to take a big-picture look at your processes.

At Markinson, we’ve put together several ways to improve wholesale distribution management while reducing your costs:

Inventory is expense

Everything in your warehouse is incurring a cost. Keep inventory as low as possible by implementing systems that allow you to treat your warehouse as a node in the link between your supplier and customer, and not as a home for goods. Also identify slow-moving inventory and price it to reflect its higher warehousing cost.

Manual processes equal added costs

Business-wide electronic and real-time tracking not only reduce costs by improving processes within your business, but also makes your business more attractive for customers (and suppliers). Share your data with customers and suppliers so that they know what you have stocked, what you can source, where products are and how long they’ll take to arrive. Doing so will help to move your inventory – creating revenue while reducing storage costs.

A better crystal ball

Your sales team’s projections aren’t the only to predict future demand. Focus on using the information generated within an enterprise resource planning system such as MomentumPro as a more accurate predictor of future trends.

Consolidate

Eliminating duplicate systems is a quick way to reduce costs. Drive cost reduction by ensuring there’s a single point of responsibility in your business for keeping a handle on excess inventory. Don’t forget the basics, such as getting rid of aging inventory.

Prioritise cost reduction

Make reducing costs a priority by creating KPIs around expense reduction. If you don’t have one already, create a dashboard view of your expenses, report on them, and ensure that the business is aware of where its costs lie. It may not always be as glamorous as sales, but reducing costs plays just as valuable a role in improving profit.

Embrace E-Commerce

Drive down your cost of processing sales and extend the hours you can trade and regions you can target. Provide a self-service portal for customers to free up your customer service resources.

Contact us to find out how we can provide solutions for your wholesale distribution challenges.


Key Features of a Successful Stock Management System

Stock or inventory management is the process of overseeing the flow of items into and out of your inventory.  A well-functioning stock management system keeps stock costs under control and helps to achieve positive cash flow.  

Ensuring the right stock is at the right place, at the right time is critical to manage supply chain volatility.  Stock control software can streamline operations by consolidating sales information, and giving employees access to current and reliable inventory data. 

But what passes for an effective stock management system and what features should you look for?

Stock management software should ideally deliver up-to-date inventory figures, comprehensive financial management and fast, easy reporting capabilities in one easy-to-use interface.  It should address the following functions as a minimum:

Inventory management

A stock management system should give you the capability to monitor changes in customer demand, and track input costs for improved production capabilities. This will increase purchasing efficiency and reduce delays in new inventory orders.  It will also allow your employees to access up-to-date and reliable information on current inventory, thus achieving complete inventory control.

Financial management 

A good stock management system will also allow you to update, monitor and implement special pricing structures across various locations, customers and products throughout the financial year.  It will help you keep track of accounts and perform various banking and reporting functions off-site. 

Customer management 

Your stock management system should allow you to quickly track customer orders, update profile information and record sales figures. 

By increasing the speed of transactions and providing customers with up-to-date inventory information, you will increase productivity, improve customer satisfaction and capture more revenue in the long term. 

When considering inventory software, remember that the goal of implementing a solution is to keep your businesses’ cash flow on track by better managing operating capital.


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