Wholesale Distribution Today
Wholesale Distribution is an established, complex and dynamic business where distributors must balance a number of competitive challenges, including:
- Meeting the ever-fluctuating customer requirements and demand
- Continually adjusting margins to account for higher supplier costs and reduced selling prices.
- Growing and managing diverse and complex product inventories,
- Accounting for fluctuation and variation within the global supply chain.
- Addressing channel disintermediation.
These challenges also represent opportunities to gain market share and increase revenue. Global wholesale distribution competitors are aware of this, and they are responding.
To stay ahead of the competition, it will be critical to implement tools that integrate business systems and provide visibility across the full scope of distribution business. Tools are not the only element, but the right tools can empower collaboration through information-sharing, as well as enabling smart, fast decision-making to gain the edge in this competitive environment.
If a wholesale distribution business has been established for some time, it likely has established processes in place for inventory control, sales order fulfillment and purchasing.
There is always the option to continue with current processes and systems, but true business leaders will know it’s important to question the status quo in order to meet the competitive challenges from other distributors. Are the existing systems the best way to meet these challenges, including offshore distribution models, and disintermediation of the current channel?