Maintaining ideal inventory levels while satisfying customer requests can feel like balancing a tightrope for wholesale distributors, especially those in a growing business. Insufficient inventory results in stockouts, disgruntled consumers, and lost sales, while excessive inventory ties up funds and warehouse space. At this point, contemporary wholesale distribution software revolutionizes the industry by providing advanced inventory management features previously exclusive to larger businesses.
The Inventory Management Challenge
Growing distributors face particular difficulties in today's competitive market. Compared to well-resourced, more prominent corporations with sophisticated systems, smaller companies often have to spend more capital on inventory. Although sufficient inventory keeps customers happy, businesses must prevent overstocking, which depletes their operating capital.
Spreadsheets and manual tracking are examples of traditional inventory management techniques that are not only labour-intensive but also prone to mistakes. These outdated approaches often result in the following:
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Inaccurate stock counts lead to unexpected stockouts
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Excess inventory is tying up valuable capital
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Inefficient warehouse space utilization
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Missed sales opportunities due to poor inventory visibility
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Increased labour costs from manual processes
The Digital Solution
Contemporary software for wholesale distribution turns these challenges into opportunities for growth, enhancing profits, efficiency, and effectiveness. Distributors can attain previously unheard-of levels of profitability, precision, and operational control by digitizing and automating inventory management procedures.
Real-Time Visibility
The ability to track inventory levels in real-time is one of the biggest benefits of distribution software. Every picked order, sold or returned item, and received shipment is quickly and accurately reflected in the system, giving a precise image of the stock that is always available. This visibility extends beyond simple quantity tracking to include:
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Accurate price changes
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Multiple warehouse management
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Lot numbers and expiration dates
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Serial number tracking for high-value items
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Stock movement history
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Location tracking within the warehouse
Multiple Warehouse Inventory Management
Keeping track of inventory in a growing retail business can be tricky. These tips, combined with the use of a dedicated inventory management system like Solid Route Accounting™, can make it easier. From handling purchases and receipts to using barcodes and stock counts, they'll put you in charge of your inventory—and your business success.
Multi-location inventory control is a key component of Solid Route Accounting™. This feature enables inventory tracking across multiple fixed or mobile sites.
Automated Purchasing
Solid Route Accounting™ provides accurate inventory levels throughout the system, enabling the ERP system to recommend order quantities or automatically generate purchase orders as inventory levels approach predetermined reorder points. This automation helps maintain optimal stock levels without the need for constant manual monitoring, ensuring that replenishment orders are placed at the right times.
Mobile Integration
Modern distribution software extends beyond the warehouse walls through mobile integration. Solid Route Accounting™ allows field sales representatives to check real-time inventory levels, place orders, and update customer information directly from their mobile devices. This ability ensures that sales teams can provide accurate delivery estimates to customers.
Streamlined Operations
The implementation of wholesale distribution software creates a ripple effect of efficiency throughout the organization. Here's how different aspects of operations benefit:
Customer Order Processing
Distribution software eliminates double-entry and reduces errors by automating customer order entry and validation. When customers can clearly specify their requirements, it minimizes potential errors, streamlines the ordering process, and fosters a more transparent business relationship.
Take control of your customer orders with Solid Order Entry™, a mobile point-of-order system that streamlines customer order entry in the B2B distribution business.
By deploying Solid Order Entry™, your business will save time. The automated customer order entry eliminates manual input, reducing human error while streamlining the ordering process for greater efficiency and customer trust.
Specialized Reporting
The Stop Analysis Report provides supervisors with a comprehensive overview of their route salespeople's work. This includes the times they make their stops, the customers they visit, when those customers were last visited, the amount for which the invoice was created, and calculates the gross profit margin. The report also provides daily subtotals and total report values for the specified period.
This report can be printed for any route, cost center, or time period, making it a valuable tool for a company's efficiency arsenal.
Financial Integration
Modern distribution software integrates seamlessly with accounting systems, automatically updating financial records as inventory moves through the warehouse. This integration provides real-time visibility into:
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Cost of goods sold
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Gross margins by product
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Purchase order commitments
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Accounts payable and receivable
Measurable Benefits
Distributors who implement modern distribution software typically see significant improvements across key performance indicators:
Inventory Accuracy
Physical inventory counts align more closely with system records, often achieving accuracy rates above 98%. This improvement reduces the frequency and duration of physical inventory counts.
Operating Costs
Labour costs decrease as manual processes are automated, and better inventory management reduces carrying costs. Many distributors report operational cost reductions of 15-25% after implementing distribution software.
Customer Service
Distributors can enhance their clients' service by utilizing precise inventory data and implementing effective fulfillment procedures. Order processing times can be shortened by up to 50%, and order fill rates usually increase by 10% to 15%.
Making the Transition
While implementing new software requires initial investment and change management, the long-term benefits far outweigh the costs. Distributors should look for solutions that:
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Scale with their business growth
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Offer cloud-based accessibility
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Provide mobile capabilities
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Include comprehensive training and support
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Integrate with existing systems
The key to successful implementation is selecting a solution that aligns with your current needs while allowing for future growth. Start with core functionality and gradually expand usage as your team becomes comfortable with the new system.
Effective inventory management is crucial for survival and expansion in today's competitive market. Modern software for wholesale distribution provides distributors with the necessary resources to streamline their business processes, reduce expenses, and improve client satisfaction. By embracing these digital solutions, distributors can compete more effectively while building a foundation for sustainable growth.
Solid Innovation® features industry-leading route accounting and DSD systems to help distributors benefit from digital transformation. Businesses seeking to enhance their distribution operations while achieving improved profitability can utilize Solid Innovation's comprehensive range of inventory and sales mobile tools, as well as its ERP compatibility, as they upgrade their distribution models.