How to run your wholesale and distribution business better with SAP Business One
Supply chain networks of today are becoming increasingly complex whilst customers are demanding more choices, faster order fulfilment and lower prices. It’s not easy for businesses to remain competitive in a global industry experiencing lower profit margins and higher costs.
As a business in wholesale and distribution, you’ll be all too familiar with the challenges your business faces, such as shrinking profit margins, growing external pressures and increased competition from third-party logistics providers. To add to these issues, many wholesalers and distributors continue to run their businesses on legacy systems that simply won’t deliver what is required to enable operational efficiency and business growth.
This is where SAP Business One comes into play. A powerful, all-in-one enterprise resource planning (ERP) solution that helps wholesale and distribution companies run their businesses better.
Those businesses that choose SAP Business One can overcome the challenges the industry faces by gaining a holistic view of their warehouse and distribution operations. It’s a system that ingrates all the key functions in the business including finance, operations, CRM and inventory, to help them deliver goods on time, boost customer satisfaction, and optimise inventory.
Simply put, an effectively implemented SAP Business One system will transform your business operations and drive profit straight to the bottom line. Let’s explore how.
Common problems in the wholesale and distribution industry
There are multi challenges that the industry faces, including:
Lack of real-time business monitoring
The absence of real-time data and the use of legacy systems makes real-time visibility of business operations practically non-existent. Maintaining real-time data is integral to all logistics companies to provide transparency with clients and ensure smooth business operations. It also enables more effective decision making and the ability to respond fast to changing market conditions.
Allocating bulk orders
Processing large quantities of orders manually according to their type, weight and delivery location etc. is difficult. It can lead to mistakes and no matter how large or small, they have the potential to cause trouble and give your company a bad reputation.
Rising transportation costs
Route planning, vehicle management and fuel allocation are all part of managing transportation. All these tasks take a considerable amount of time and can lead to unnecessary expenses if not managed properly.
Inefficient data management
There are often multiple databases in a business and trying to manage these manually can be a challenge. The lack of a central set of data can lead to data inconsistencies, which can lead to financial penalties. Inefficient data handling will also have an impact on customer satisfaction when things go wrong. The business operations can be hampered considerably, and a lot of time wasted.
Poor inventory management and visibility
Insufficient inventories can lead to customer losses and satisfaction. Improper inventory management can also give rise to compliance issues.
Navigating complex taxes
Global supply chains can mean complex tax systems. Managing these taxes manually can lead to wasted time and money. An ERP system will streamline processes and ensure that tax risk is being effectively managed.
Poor account management
Efficient account management is a large contributor to the success of any business. Cash management, budgeting and monitoring cash flow can all be handled a lot easier using an ERP system.
Inefficient consignment tracking
It is not uncommon for customers to check the status of shipments on a daily, even hourly, basis. Keeping track of the consignment can be exhaustive and challenging. In the warehouse and logistics industry there are some strict compliance regulations to adhere to as stated by various authorities and it can be tough to constantly comply with the prevailing rules. ERP systems assist organisations in adhering to regulatory requirements by integrating compliance controls into standard processes. By automating compliance checks and documentation, organizations can reduce errors, avoid penalties, and maintain regulatory compliance consistently.
How SAP Business One can help
SAP Business One can help warehouse and distribution companies overcome these challenges optimising operations and improving efficiency. Here are some ways it can help your business:
Efficient order management
With SAP Business One, you can ,manage orders and track the status of deliveries in real-time to ensure goods are delivered on time and customer satisfaction is maintained. Customised alerts can be done to help users issue deliveries on time.
Effective inventory management
The system tracks inventory levels in real-time and allows the management of stock across multiple warehouses to reduce stockouts, optimise inventory levels and improve order fulfilment. Businesses can match current demand to on-hand inventory and make better buying decisions to keep stock under strict control. Distributors can also use the dropship warehouse, where ordered goods can be directly delivered to customers without the need of having the stock going through the current warehouses.
Accurate tracking and reporting
Robust tracking and reporting capabilities allow you to monitor shipments, track deliveries and generate reports on key metrics such as delivery times, route efficiency and driver performance. You can quickly share information with suppliers and customers using portals. Accuracy in tracking and reporting enables you to better manage regulatory and governmental compliance. Moreover, SAP B1 provides the ability of linking suppliers and customers orders through project. So, users can track all transactions that are related to a specific shipment.
Streamlined financial management
Comprehensive accounts payable, accounts receivable, general ledger and financial reporting features help you manage your finances more effectively and minimise costs. SAP Business One enables better operational control efficiency and cost savings via KPI reporting.
Enhanced customer service
Powerful customer relationship management features help you to track customer interactions, nurture leads, manage customer accounts and improve customer satisfaction. The system enables you to identify emerging behaviour and anticipating capacities. It provides better insight and understanding of the business and relationships, allowing to negotiate better terms from suppliers and customers. Quality control checks and templates can be added to the sales cycle to assure goods are delivered within the standards of the organisation.
How QBEX can help
In summary, SAP Business One can bring transformational change to companies in the wholesale and distribution industry. Our team of experts can explain how your business can embrace the functions offered by SAP Business One to improve operational efficiency and gain competitive edge. the digital technologies that drive transformation and competitive edge. Get in touch today.