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Wholesale Distributers are faced with growing costs, shrinking margins, new competitors and demanding customers. Effective supply chain management is what often separates successful wholesale distributors from those that constantly struggle. Demand-driven supply chain planning techniques can avoid costly overstocks, stock-outs and expediting charges. Industry leaders have taken certain key supply chain management actions that every wholesale distributor should consider:
- Embracing a demand-driven business model
- Focusing on inventory optimization
- Buying inventory when it’s needed
- Enhancing inbound transportation capabilities
- Moving to a fact-based operating culture
- Improving long-range planning capabilities
These actions help distributors move beyond their traditional focus on low price, today’s orders, and rule-of-thumb inventory management. Mastering these supply chain optimizations can result in significant competitive advantages, rewarding operating efficiencies, extra working capital, and higher customer service levels.
It’s time for every wholesaler distributor to “go beyond spreadsheets” and embrace integrated software tools that offer powerful organizing and planning features, as well as the ability to model complex supplier constraints, uncertain demand patterns, and multi-location inventory networks.