Distributors face a unique set of challenges in their business processes, including the movement of products through each stage of the distribution process as economically and efficiently as possible. This involves keeping up with a large number of transactions and stocks. Enterprise Resource Planning and Accounting Software specifically tailored for the distribution industry can help distributors a great deal at every step, from production to delivery. Here is a guide to the difficulties that organisations in the industry face, and the benefits that a distribution software solution can provide.
There are many stages in the distribution process, including purchasing, inventory, sales, delivery and retail. A major challenge is keeping all of these in-congruent disciplines functioning efficiently, tracking if anything goes wrong, and reducing as much unnecessary expenditure as possible.
Distribution companies have to take risks when they hold inventory, as their products have to be available as soon as their clients need them. This leaves distributors vulnerable to trends, price fluctuations and economic turmoil, and need to be able to respond quickly to market changes and internal problems. Managing the inventory is problematic within itself, as there are so many components that need to be supervised. Parts have to be sourced from different assembly centres and manufacturing companies, as well as reliable backups in case of emergency.
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