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According to the most recently available statistics from the National Association of Wholesale Distribution, wholesale distribution companies make up 5.6% of GDP in the United States. In other words, wholesale distributors are a vital component to the fuel that powers this economy. However, even as an essential cog in the economic powerhouse that is the United States, you are not immune to normal business challenges and the potential for failure. You can however identify and take measures to protect yourself and eliminate supply chain issues.
What Are the Main Challenges Faced by Wholesale Distributors?
Like most companies, wholesale distribution businesses have to weather the forces of supply and demand, consumer opinions, and market volatility. That being said, supply chain management is often seen as the biggest hurdle wholesale distributors have to face on their way to success. As Supply Chain Digest points out, the problems with retail supply chain management are multifaceted:
- 75% of distributors polled say that supply volatility is a huge concern. Customer and supplier loyalty is on the decline.
- Localized supply chains are ineffective and risky. If a company can’t expand to a global supply chain, it will find success difficult to reach.
- Unnecessary, quickly compounded costs.
How Enterprise Business Software Can Improve Supply Chain Management
Difficulties with supply chain management systems are too often seen as foregone conclusions. Using the latest enterprise business software, particularly options tailored for supply chain services, can address the most common challenges to your distribution company, as The Houston Chronicle exhaustively details:
- Eliminate Needless Steps in the Chain
- Improved Relationships Equal Increased Output
Supply chain management systems are built to help companies see every step in their supply chain. As you may know, supply chains are rife with unnecessary, costly steps. A system built for supply chain management will help you remove these steps, increasing supply flow and reducing costs.
Using wholesale and distribution software gives you the tools you need to better nurture relationships with your customers and your suppliers, helping you to speed up the fulfillment of your orders. Once you gain a reputation for quality, reputation, and loyalty among your partners, you will be able to expand your reach, earning greater access to the international chain you so badly need.
No one should doubt that running a wholesale distribution company will always come with supply chain obstacles that need to be scaled. With the aid of top-of-the-line enterprise business software and a strong services partner, you can mitigate the most common issues, helping to ensure your business continues to thrive.
NSA Computer Exchange has been helping distribution companies implement plans and processes to improve business since 1984. If your looking for a better way to manage data, streamline efficiencies, boost productivity and grow your profits contact Patrick VanPutte, NSA President. Let our 30 years of experience and expertise in the business accelerate your success.
As a leading business software service organization for distributors, NSA Computer Exchange Corp is ready and available to help you work smarter and grow your distribution company faster, why not find out how we can help? Give us a call at 516.240.6020 or email us at email@example.com today.