As it becomes increasingly challenging to keep up with ecommerce giants like Amazon, it is important that distributors leverage financial management technology solutions in order to stay competitive in an ever-evolving global market. Whether you are a distributor facing issues with scaling, managing inventory, completing manual processes, or looking to integrate ecommerce; it’s clear that using technology to access real-time information provides you with the visibility you need to accelerate your business.
So, how can financial management technology transform your business?
1. Inventory Management Automation
Many businesses struggle to define their inventory levels even after hundreds of hours performing manual counts. Today’s leading distributors are using an integrated solution that ensures there are no stock outs, shrinkage, data duplication, or redundant workflows. Incorporating automation for inventory management helps increase operational efficiency and order accuracy by improving picking, packing and shipping tasks. Not only will you save time, but you can also reduce human error which allows for accurate projections, confident decision making, and ultimately increased profitability. Furthermore, you can report on daily logistics and inventory velocity to gain deeper insight into your organization.
2. Real-time Traceability
For distributors, it’s crucial to have complete visibility in order to comply with Good Manufacturing Practices and get your products into larger retail organizations. Proper barcoding enables higher accuracy levels that are needed to reach traceability requirements for inventory management. Not only does barcoding allow you to ship with confidence, it also ensures that if any issues arise with a certain product, you will be able to quickly identify any current inventory that might be effected. Lastly, real-time traceability allows distributors to easily locate products and pull reports detailing the product lifecycle for any order.
3. Seamless Work Order Management
Whether your organization is building or kitting items, you will need to map out the direction of the work for your team. For each work order, by leveraging technology integrations, you are able to provide your team with clarity on the work that needs to be performed by creating a plan for them to follow. For example, as you begin build out work orders, these technology integrations will help you monitor your capacity and make recommendations based off of your sales history. This process allows your organization to have the necessary information to make the best decisions moving forward. Additionally, this ensures proper inventory rotation through discreet assembly as well as maximized production for batch assembly.
4. Leveraging the Power of Ecommerce
The Internet is reshaping how customers and businesses interact, making it vital for your organization to develop new services to keep the end customer satisfied. Since e-commerce distribution is always evolving and growing in scope, your organization needs to focus on proactively getting your business in front of customers. Warehouse management software is a necessary tool that acts to optimize the logistics chain while meeting demand for deliveries. Also, this software can be leveraged to automate return management to handle the flow of goods back to your warehouse. Catering to market trends and including an ecommerce offering has the potential to significantly impact the bottom line of your distribution business.
5. Multi-Entity and Multi-Currency Global Consolidations
Distributors that own and operate multiple warehouses in different locations typically face complexities with decentralized payables, multiple currencies and global consolidations. For instance, by utilizing a cloud financial management system, your organization can benefit from automated financial consolidation activities. Not only will the financial management software convert currencies and adhere to local tax reporting requirements, it will also allow your organization to close the books faster by eliminating the need for manual efforts. Furthermore, you can easily set up new entities as your organization expands and configure these entities with unique definitions.
It’s Time to Optimize Your Distribution Operations with Technology
Being able to align your business strategy with technology tools will set you apart from your competitors. Whether it’s optimizing your inventory management, streamlining work order fulfillment, or providing in-depth reporting detailing your operations, financial management technology gives you complete visibility and control over your organization. In conclusion, you need a solution that not only fits your accounting needs but also your business processes and incorporates best practices to ensure success and growth.
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