Industry Challenges for Distributors and How Microsoft Dynamics ERP can Help
Every industry has their unique challenges; therefor having a unique solution to help overcome these challenges is a necessity. Here are three critical challenges the distribution industry faces and how Microsoft Dynamics ERP can help:
Dependent on local economic conditions- Because most distributors serve a limited geographical market, you may be sensitive to local economic conditions.
Make your local customers trust and depend on you by ensuring accurate and on-time delivery with powerful customer/supplier integration, planning tools, and company-wide inventory visibility with Microsoft Dynamics ERP. You can respond rapidly to unique customer demands, such as specific packaging and shipping requirements as well as manage customer interactions across multiple communication channels.
Greater competition with manufacturers- The increasing efficiency of logistics systems allows manufacturers to sell more goods directly to end-users, bypassing distributors. Direct manufacturer sales account for nearly 30 percent of total wholesale trade in the US.
Streamline your business operations through automated business processes, from order capture to inventory replenishment, and help reduce wasteful activities. With Microsoft Dynamics ERP, you can deliver real-time business intelligence and alerts on the status of the business to management and customers. You can also enable customer self-service through Web portals, streamlining the order process, and saving you time and money.
Inventory carrying costs- Because many distributors finance their inventories, you may be sensitive to interest rates. On average, distributors hold inventory equal to 35 days sales, but machinery distributors may hold products for more than 50 days.
Improve supply chain and inventory management by providing easy, real-time visibility into inventory, sales, purchasing, and financial information across multiple locations. With Microsoft Dynamics ERP, you can accurately track shipping and delivery of parts by integrating Automatic Data Collection (ADC) functionality with enterprise resource planning (ERP). You can also maintain accurate real-time inventory data and optimize layout, picking methods, and movement. Through this increased insight, it’s easy to create accurate demand forecasts, preparing your business for the future.
PANGEA is a Microsoft Gold Certified Partner with a ten-year track record of helping medium-size companies gain maximum results from their business and technology infrastructure investments, such as Microsoft Dynamics® ERP software.
By Alexandra Gonzalez, PANGEA Business Solutions