How has your distribution business evolved over the years? Have you moved from a brick-and-mortar business to offering your products online? Has your inventory availability doubled, or tripled, in the past few years? Have you moved from one distribution location to multiple locations around the U.S. or even the world? If you answered yes to any of the above questions, congratulations! You’re company is growing!
Business growth is always a thing to be celebrated; however, if you do not have the tools and processes in place to handle that growth, your business could become a nightmare very quickly. If your distribution company has experienced sudden sales growth over the past twelve months, you may be experiencing a number of inefficiencies or challenges, such as:
- Inventory shortages
- Displeased customers
- Data inaccuracies
- Disorganization in the distribution center
- Delayed shipments
- Higher overhead costs
A Real Look at Inventory Management
With the rise of the Internet and online shopping, the demand distribution centers face is much higher than in years prior. As online sales and in-store orders continue to rise, distributors are scrambling to fulfill orders as quickly as possible without losing the accuracy or quality their customers have come to expect. Therefore, the need for accurate inventory numbers and instant availability is critical to your company’s success.
Inventory management is often the most challenging aspect of managing a distribution center well. With so many fluctuations in product demand, it can be difficult – if not impossible – to predict how much inventory to keep on hand. In fact, for many companies, overstocks and shortages are the reality rather than the exception. As soon as you stock enough of the product to meet customer demand, the demand for that product dwindles and rises for another item (which is, of course, understocked to meet the new demand). It is a constant game leaving many distributors feeling distressed and disorganized.
The Answer to Growth and Distribution Distress
With the right solution, however, inventory management does not have to add additional stress to your distribution operation. In fact, with Sage Inventory Advisor, you have all the tools you need to forecast for the appropriate inventory levels. Proven to reduce excess inventory and stock outs, improve fill rates by 2% – 10%, reduce working capital, and free up 15%-20% of your cash tied up in inventory, Sage Inventory Advisor is the answer to all of your inventory troubles.
Contact us to learn how you can begin using Sage Inventory Advisor to manage your distribution growth.