Challenges for Wholesale Distributors
Most Of Our Distributor Customers Report Having The Same Issues In Inventory Control:
- Warehouse workers looking for products in aisles.
- They experience stock-outs of other products, resulting in backorders, lost sales, and dissatisfied customers.
- They have too much of some products, which leads to excess inventory that ties up working capital and profitability.
- They have lost track of what is in inventory because their legacy applications cannot effectively keep up with the growing demand and the speed of business.
- They cannot find material that their system says is on hand.
To take on these challenges, you can create and implement categorizing projects to reduce and eliminate excess and obsolete inventory. Include higher system accuracy, create inventory models, that show the relationships among inventory investment, lead time, and demand variation. More accuracy in inventory assessments, in bin locations, and in higher cycle counting, as well as, and most importantly, permanent reductions in excess and obsolete inventory will lead to more money in your pocket.
Solutions For Wholesale Distributors:
- Categorize your inventory – You can break your categories into many different parts, anywhere from bin location, aisle, drawer, shelf, and even which warehouse the products are stored in. Having locations for everything is going to boost your warehouses’ efficiency, thus maximizing its full potential.
- Forecasting – Your company’s demand is going to fluctuate. Forecasting can help you plan inventory and maintain appropriate levels, thereby avoiding excess inventory or shortages.
- Centralization – You may track inventory through multiple spreadsheets, but a centralized inventory management system, provides a way to keep accurate inventory counts, deal with unexpected events, avoid overstocking, and boost inventory efficiency.