Life isn’t a game show. What lies behind the locked door isn’t a mystery. It’s the equipment to improve efficiency for your business so you can take your company to the next level. All you need is the key.
A 2017 study from Mint Jutras found that fewer than 60% of companies in the wholesale distribution space used full-scale, integrated solutions like enterprise resource planning (ERP) software to manage mission-critical operations.
The same study found that the top 20% of ERP implementations led to a 24% reduction in inventory costs. The rest of these implementations also performed very well, achieving a 13% decrease in those expenses.
The message is simple: A successful ERP implementation can mean lowering your spend on inventory, and a successful implementation starts with clear objectives.
The better your goals are defined across your supply chain when you begin shopping for an ERP and a solution partner, the more likely you are to achieve a highly successful outcome.
At Fusion5, we want to help you identify your pain points and determine the solution that will address those specific needs in the most effective way. We know that every organisation is unique and that your objectives are tailored to your business model.
Today, we’re taking a broad look at inventory management needs in the wholesale distribution sector, and we’ll explore how NetSuite, one of the most popular options, can help you improve efficiency and streamline operations.
Let’s get started.
First of all, we should define our terms. What does good inventory management entail?
Inventory management is one of several crucial supply chain processes. When everything is running smoothly, inventory management means having enough trading stock on hand to meet the demand for order fulfilment. At the same time, you want to avoid overspending on unnecessary goods or excess warehouse space and handling expenses.
Effective inventory management is important for:
- Suppliers of raw material.
- Manufacturers.
- Wholesale distributors and fulfilment companies.
- Retail outlets.
It’s important to note that inventory management refers specifically to materials that are being bought and sold as part of your core business operations. Human capital and supporting equipment - for example, warehouse workers and forklifts - are not considered part of the inventory management process, since they’re not trading stock.
For wholesale distributors in particular, carefully tracking your inventory in real time and making sound decisions based on up-to-the-minute data is an area where some good old-fashioned Aussie ingenuity could give your business a critical edge over the competition.