According to First Research, the increasing efficiency of logistics systems allows manufacturers to sell more goods directly to end-users, bypassing distributors. Direct manufacturer sales account for nearly 30 percent of total wholesale trade in the U.S. Consolidation in many manufacturing industries has produced large manufacturers with national distribution systems. Manufacturers have a large direct distribution presence in drugs, petroleum products, and chemicals, and a small one in groceries and clothing. Big retailers like Wal-Mart, Home Depot, and Costco buy much of their merchandise directly from manufacturers, bypassing distributors. Because they buy in large quantity and operate their own warehouse systems, these retailers don’t need distributors. Superstores and warehouse clubs now account for more than 60 percent of sales of general merchandise stores, up from just 35 percent 10 years ago.
How much business has your company lost due to retailers buying directly from manufacturers? And how can you fight this growing competition as a distributor? Knowledge is power. The more you know about your business, the more efficient your company can be, the better your customer service, the more you can fight this competition.
Business intelligence provides a platform for advanced reporting and interactive analysis on data from multiple data sources. When the information you need resides in your ERP, CRM, and logistics management databases, BI enables self-service financial and operational analysis that yields actionable insights. Are you losing business in one geographical region? Are you maintaining profitability in your most used distribution services? Do particular customer segments comprise your rising stars in terms of revenue and margins? Being able to answer questions like these will allow management to focus on strategic and tactical initiatives that will position your company for growth.
BIO business intelligence helps identify anomalies and enables users to dynamically investigate causes and correlations, reducing their reliance on static, hard-coded reports. From financial reporting and accounting controls to customer, product, and project accounting, BIO pre-defined views and ad hoc capabilities give you answers at the speed of thought.
BIO dashboards and report cards provide a single source to view and analyze everything there is to know about a single customer, salesperson, or territory. From next expected order date to customer lifetime value and changes to customer profitability, BIO provides this group with actionable knowledge that drives sales and increases customer retention.
Take a look at this video that shows how BIO dashboards and ad hoc analysis capabilities can give you a leg-up on the competition. And give me a call at 203.705.4648 or email me at sandi@bio4analytics.com if you have any questions about BIO or business intelligence in general.
By Sandi Forman of BIO Analytics, Corp., a Business Intelligence (BI) Microsoft Dynamics ISV
BIO Analytics Corp. provides business intelligence software and services for Microsoft Dynamics. Visit our website to learn more and to view demos.
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