You can increase your business’ wholesale and distribution profits this year. To do so, you need better insights into your business. With the data you can derive from Sage 100, Sage 500, and Acumatica, you can improve wholesale and distribution systems, profits, and more.
Wholesale and Distribution ROI
Improving wholesale and distribution ROI begins by knowing your entire inventory system inside and out. Only after reviewing inventory management systems alongside ERP data can you create new business models, understand current problems, and set new objectives.
The following three examples may help you determine areas where your ERP system can be used to improve wholesale and distribution ROI.
#1: Use ERP data to develop new business models
Shake up the status quo by diving into the data from your business in new ways. If you use the same reports each week, you tend to glaze over them, becoming habituated to the information and not fully engaging with it. Freshly generated data may paint a surprising picture, leading to new ideas and a new business model. These new business models can then boost profits and ROI.
#2: Examine data to find revenue drivers.
If asked, you could probably state the three top revenue drivers for your business. But are your assumptions accurate? Many business owners fall into the trap of repeating what they consider well-known facts about their businesses without checking it against current data. If you recognize yourself in that statement, it’s time to examine your long-held beliefs against current data.
Instead of the assumptions driving decisions, data can now drive decisions. When you see the facts, you may find new revenue drivers or areas to exploit for add-on sales or additional revenue. The facts don’t lie. When you find something that’s selling well, you’ve found your revenue drivers.
#3: Learn about your best customers
Your best customers have a lot to teach you about your future marketing success. Find out how you obtained them as customers in the first place and what keeps them coming back as customers. Analyze the features of your best customers, such as the industry they’re in, their annual revenue, decision-making process, problems your company solves and more; you’ll be able to derive a model for future marketing programs.
Data Helps You Build a Better Business
This list is only the beginning. With better wholesale and distribution data from your system, you can:
- Review your current wholesale and distribution models to see which is profitable, and which is not.
- Understand bottlenecks and roadblocks that keep distribution from being as efficient as possible.
- Examine wholesale opportunities and vendors, and ensure that prices you spend for raw materials, for example, justify wholesale costs.
- Build better systems and processes based on data.
Products such as Scanco for Sage 100 and Acumatica and Sage 500 Mobile Warehouse by Escape Velocity offer you the ability to improve your tracking and monitoring of data across all your wholesale and distribution facilities. Cloud-based systems provide real-time updates, mobile access, and other features that make them a great choice for manufacturing companies with multiple locations.
There’s an art to wholesale and distribution facilities. Balancing efficiency against profitability, inventory demands versus customer satisfaction all take skill, talent—and data. With the right data, you can significantly improve your business model and your ability to manage your distribution facilities.
Emerald TC offers cloud ERP software, warehouse and distribution software, and more. We specialize in helping mid-market, multi-location companies increase efficiency, productivity, and profits. Contact us or call 678-456-6919 today.