What Technology Platforms Do Wholesale Distributors Need in Order to Stay Competitive?
Wholesale distributors are now part of an increasingly complex supply chain which requires technology platforms for such companies to remain competitive.
Wholesale distributors fulfill important functions in the economy. For more than a century, the wholesale distribution industry has played a big role in the timely movement of goods to facilitate the retail sector. However, certain technological advancements have created a number of challenges which may disrupt the wholesale industry.
However, with a little resourcefulness, these issues can be addressed by adopting the latest technology. Wholesale distributors who adapt to the changing conditions and continue to evolve can even progress far beyond where they started.
Wholesale distributors form a bridge between manufacturers and retailers and therefore perform the middle man role. Although wholesalers appeared to be stable for several decades, inroads by technology have created several key issues. Retailers can now leverage online marketplaces to directly contact manufacturers without having to rely on wholesalers.
Digitalized Wholesale Service
Although technology has created the problem, it can also provide the solution. Wholesalers can now use technology to offer services that retailers cannot leverage from online market places such as inventory management. In this paradigm, specialized software is used for inventory management to automate several facets of the distribution function. This can save an enormous amount of time and effort for the retailers and thus offer value by allowing them to focus on core business activities rather than worrying about distribution.
The retailer can determine reorder levels for inventory which will inform the wholesaler immediately when inventory dips below the given level. As the wholesaler, you will then deliver and replenish inventory in a timely manner. This is a winning scenario for both. The retailer never has to worry about reordering stock and running low on inventory while the wholesaler continues to remain relevant and is able to do great business.
Inventory Management Complexity
Keeping track of all the inventory is a massive undertaking and yet extremely necessary for wholesalers. It is hard to follow inventory particularly when it is moving as is most often the case in the modern business environment. Certain companies used RFID tags for this purpose but it has proved to be far too expensive.
ERP solutions provide a cost-effective and efficient solution for inventory control. One superlative benefit of ERP systems is that you don’t need multiple disparate databases that need to be updated separately.
Adjuncts to ERP
However, in order to harness the power of ERP systems, software solutions are needed to synchronize and update data in real time.
Route Management Software
Wireless integration with the ERP platform to manage inventory is necessary. Delivery drivers of wholesale distribution companies now need wireless access through their mobile devices in order to make the necessary updates to inventory levels. With Indigo Olive software like the route management suite, drivers can now record deliveries, returns, changes in orders, collect payments and generate invoices at the delivery point. The best part is that as they capture this data on the route management software, the ERP system is automatically updated. Indigo Olive’s route management integrates seamlessly with a wide variety of ERP platforms so such management software can be easily included in any IT ecosystem controlled by ERP.
Get in touch with Indigo Olive today.
Indigo Olive Software
1001 – Indian Creek Road,
Wynnewood, PA 19096
Phone: +1 (888) 788-4634 / 888-898-INDI