Slow response to demand change in the wholesale distribution industry

By Diane Harvey | March 29, 2021 | SAP Business One , Wholesale Distribution , WMS

Slow response to demand change in any business can be a major tipping point. To fight this, you need a reliable business intelligence platform.

In today’s marketplace, companies need to be able to respond quickly and efficiently to demand changes. Companies that are effective at managing their inventory have a competitive edge in this marketplace. It is easy to manage demand at the beginning of a sales cycle. This becomes much more challenging at the end when the customer wants an immediate finish product or service. Wholesalers and Distributors find themselves faced with many challenges during these situations.

They are simultaneously planning future inventory levels based on;

Forecasts of future demand, placing orders for immediate fulfilment, and managing shipments as the products are delivered.

The distributor fills the warehouse based upon the forecasted demand. They then place purchase orders for replenishment based on the trend analysis. If inventory turns faster than expected, they may need to place additional purchase orders before they see actual demand. If this scenario continues for too long, it can lead to high inventory levels at the distribution centre, which has its own cost implications in terms of space and labour.

Business is all about having the right products in the right place at the right time. Wholesalers and distributors have a full plate keeping up on changing things: prices, operational costs, populations, regulations and so much more. Add to this uncertainty in customer demand and you have a recipe for wait-times that can cost your company not only profit margins but sales as well.

The topic of supply chain management is a huge one. Most people think about managing suppliers across multiple locations or companies who want to move product quickly. However, there’s a need from customers to make quick changes based on current demand. Customer demand is changing all the time, products are being updated or even discontinued.

To avoid slow response to demand change, businesses need a modern approach. They need something that helps them update their;

Stock and pricing, re-route sales orders and manage deliveries in real-time and maintain high levels of availability of inventory.

Businesses in all industries have to deal with changes in demand situations on a daily basis. The impact of such a change in demand on the overall business can be devastating. Most often businesses do not respond to such changes fast enough which results in low revenue growth, high operational expenses, and poor customer satisfaction.

The market is changing, and supply chain organizations need to be more agile.

With the increasing complexity of today’s business environment, it has become very tough for business managers to focus and plan for every demand situation. Managers end up wasting time and resources on redundant planning exercises instead of focusing time and energy on developing the business strategy.

Luckily, SAP Business One helps you anticipate and react faster to customer demands.

SAP Business One enables a direct connection between your business and your customers in real time, enabling you to respond faster to customer demand changes and creating a lean and efficient supply chain. It is able to connect users in real time, which means that information can be accessed instantly

Key benefits of SAP Business one includes the ability to generate sales forecasts, providing real-time visibility into critical trends and comprehensive analysis to help identify, understand, and resolve potential issues. This not only helps you respond faster to customer demand changes but also helps you stay competitive at a lower cost.

SAP Business One helps you respond quickly to the changing demands of your customers. So, you can stay close to your customers and deliver what they want exactly when they want it.

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