How to Justify Wholesale Distribution Software Investment

The wholesale distribution business works under intense margin pressures. Every means of reducing costs and increasing revenue should be evaluated. One key investment that you can make to improve margins is software to manage your inventory. Wholesale distribution software can help you take control of your inventory costs and increase revenue.

Justify Your Investment in Wholesale Distribution Software

There are many reasons why your company can benefit from an inventory control solution. These three offer some of the most common areas companies evaluate to justify investment in software for wholesale distribution.

#1: Better Inventory and Shipping Data for Reduced Costs

Wholesale distribution software arms you with data so that you know more about scheduling, packaging, and more to help you run this aspect of your business more efficiently.

It’s hard to improve on systems when you can’t pinpoint the gaps. Inventory control systems can improve your access to inventory and shipping data so that you can spot problem areas and develop solutions. If there’s a bottleneck, you can find it. If there’s a delay, you can investigate it. With good wholesale distribution software in place, this information becomes much easier to obtain and you can act more quickly on it.

Using accurate, real-time data from an inventory control system can help you reduce errors. Mistakes and incorrect shipments can take their toll on your business’ profitability. We discussed the cost of just one mistake in our blog, The Real Cost of Picking Errors in the Warehouse. In this article, we shared that a single fulfillment error can decrease profitability of that sale by 11-13%.

#2: Improved Customer Service and Sales for Greater Revenue

Customers don’t want to hear “I don’t know” when they ask where their shipments are. When you have an inventory control system in place, you can answer confidently when they ask where their shipments are in the process. You can track shipments and packages, provide more accurate arrival dates, and help your customers manage their inventory, too. It’s improved communications that leads to better customer service. As you know, better customer service leads to repeat sales and higher revenue.

#3:  Greater Competitive Advantage for Long Term Profitability

Companies with better warehouse management offer customers something extra in their service package. That competitive advantage should not be underestimated. Sometimes it’s one of only a handful of things that set you apart from your competitors. Whatever you can offer to win business, you should. With wholesale distribution software, you can remain highly competitive and offer your customer better shipping and delivery information. It may seem like a small thing compared to other factors, but it could be the deciding factor with an important customer.

Wholesale distribution software offers businesses an unparalleled package of solutions. These include inventory control, automated data collection, business intelligence, scheduling, package delivery information, and more.

When each of these components feeds into your enterprise resource planning system, you can glean deeper insights into the performance of your entire warehouse and shipping operation. Boost productivity, shorten order times, and reduce costs. When your inventory system is tightly integrated with your ERP, you can implement business processes and make decisions that increase revenue.

Emerald TC Has Experience Helping Wholesale Distributors Succeed

If you are considering implementing wholesale distribution software, we can help. We have experience in implementing Sage 100 and Acumatica Cloud ERP to create greater success for wholesale distributors. Acumatica’s distribution software recently was recognized by COdiE as the “Best Supply Chain Management Solution.” Contact us for a free consultation.

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