Inventory: The Wholesale Distribution Pain Point

By Diane Harvey | March 4, 2021 | SAP Business One , Wholesale Distribution , WMS

Inventory. You’ve heard the word before and you might even dread it, especially if you’re in an industry like wholesale distribution. But don’t worry, we’re going to take a look at the wholesale distribution industry’s top inventory problems and a few suggestions on how to address them.

Inventory management is the process of keeping track of items that are stored, purchased, and sold by a company. The main purpose of this practice is to ensure that an organization always has enough raw materials and finished products to support its operations, as well as meet expected customer demand.

Although manually managing inventory is easy, it is quite challenging and time-consuming for companies to effectively track and manage their inventories especially small businesses. It just takes up too much time from our daily routine.

The Wholesale distribution industry is known to have a major inventory pain point.

It is the inability to make timely decisions for managing their inventory. This is a concern especially in a fast-paced environment such as grocery distribution. As business grows and competition heats up, the ability to manage inventory like a pro is extremely necessary. With shipping delay being a common characteristic of this industry, it is becoming even more difficult to manage inventory without using technology.

The wholesale distribution business model involves a large amount of inventory being stored within a central location and then distributed out to retail stores. Inventory management in this industry is key, and everything from product damage, theft, spoilage, and obsolete product has to be managed on a daily basis. Having the right tools in place to make these decisions can save companies significant amounts of money, protecting the bottom line.

The ability to track and report the movement of your inventory is crucial to your accounting system. It’s also a huge challenge for those in wholesale, because when it comes to getting paid you need to know exactly what has been sold so that you can send out accurate invoices and receive payment on time.

Managing inventory across multiple locations and warehouses can be a huge pain. From the garage to the warehouse, from coast to coast, businesses are finding it hard to manage freight, deliveries, and pick-ups.

Maintaining an effective inventory management system is critical for the success of any wholesale distributor. Manual processes and bad, outdated systems hamper growth, increases errors, and leads to customer dissatisfaction

You have two choices for controlling inventory, first is through a traditional pen and paper system which is slow, inaccurate, and inefficient. Second is through an ERP system like SAP Business One.

When comparing the leading enterprise hosted software options, it is quite easy to see that SAP Business One stands out from the crowd.

SAP Business One offers an easy-to-use solution to take total control over your inventory and gives you peace of mind knowing that all movements of products are verified against actual stock levels. This allows you to increase productivity and reduce costs

SAP Business One brings powerful insights into your entire business in one place. Whether you have 3 or 3000 warehouses, whether it is the main warehouse or a small satellite location, SAP Business One makes it easy for you to get a 360-degree view of your operations.


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