If you have dreams of expanding your wholesale distribution business, you need to ensure you have profits to channel into your future growth plans. As you start to grow, you take on new customers, new product lines and probably hire new team members to handle the influx in demand. But as you grow, your processes often become more complex. It’s also easy to lose sight of performance in certain areas of the business. So, the big question you have to ask yourself is – are you as profitable as you could be?
Seize Opportunities to Optimize
You’re ready to evaluate your business practices and identify areas of improvement, but maybe aren’t sure where to start exactly. Here are five steps to help you optimize profitability across your entire distribution business.
1. Automate your chargeback process
Save time and effort by automating your system for chargebacks and rebates. By logging all sales, payments and transactions in one integrated platform, you can see what is owed and chase it up more easily. That means you get money back faster and have more disposable cash for purchasing or growth initiatives.
2. React to changing market conditions
Buy goods when prices are cheaper. Improve inventory management to get a real-time view of your stock, so you buy only what you need at a price that optimizes your profits.
3. Analyze your cost-to-serve
By analyzing your customers based on the cost-to-serve them, you can determine how best to do business with customers that will provide you with the greatest return.
4. Improve supplier relationships
Take advantage of improved terms and discounts by building good relationships with your suppliers. Streamline your business for improved service performance and offer multi-channel purchasing options for better customer experience.
5. Integrate planning and execution
Make smarter, time-sensitive decisions by integrating planning and execution. By joining these two business functions, you can streamline your operations and get a complete, real-time view of your whole business – so you can make faster, more informed choices.
Take Advantage of Integrated Systems
With SAP Business One—a solution designed specifically for small to mid-size distribution businesses—you can automate and integrate your key business functions, saving you time and money. You can easily analyze your spending, and see which customers offer you the best terms and profits. And by automating chargebacks, you can save time and effort chasing payments. All of which can help you optimize the profitability of your business.
See if your current inventory management system is working as well it could be. Take the 2-minute system health check.