The 1, 2, 3’s of Distribution: Cut costs, Streamline Delivery Processes and Beef Up Departments

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I’m not going to go as far as to say that Distribution is as easy as 1, 2, 3.  But I will say most distributors have three similar goals: 1. Cut costs, 2. Streamline delivery processes, and 3. Beef-up departments.  One way to manage these goals is with the use of the right enterprise resource planning (ERP) software solution.

Solutions such as Microsoft Dynamics® NAV can manage finances, manufacturing, supply chain, sales and marketing, project and services management, human resources, as well as provide business intelligence and reporting functionality.  Using an integrated software solution can provide the data needed to take your distribution business to the next level.

  1.  Cut Costs:  You might have an idea on where you can save money by reducing spending or cutting unnecessary expenses.  However, monitoring your finances in an ERP software solution will provide more reliable data that you can use to cut costs.  Added insight into your financials will indicate whether you can reduce inventory without impacting customer satisfaction.  You might be able to get your products at lower prices if you order them earlier than normal or at different bulk rates.  You might also be able to save money by paying suppliers early (or at least not late).  With every financial transaction noted in your ERP, it will be easier for you to investigate spending in every aspect of your business and find ways to reduce spending without guessing.
  2. Streamline Delivery Processes:  Having both customer and supplier data in the same software solution can make it easier to organize how and when you get your products, and how and when you deliver them to customers.  You might find savings in both time and money if you use local distribution facilities closer to the customers or use suppliers located in closer proximity to customers.  Having suppliers ship directly to the customer can save time and money too.  You can also streamline the pick, pack, and ship process by organizing warehouse facilities.
  3. Beef-up Departments:  All of your labor and expenses are tracked together in your ERP software solution.  You can find ways to streamline operations to improve productivity which can lead to working leaner or moving workers to busier departments.  Seasonal, economic, and even customer fluctuations can cause lows and highs, so reassessing employees responsibilities and work-hours can improve productivity across the business.

Many distributors use ERP to organize their operations to improve productivity, set and track corporate goals, and use the data collected to drive business growth.  Seeing reliable, accurate data in your software will give you the confidence to make changes that are based on real-time data, and not guess-work.  Contact Aztec Systems for more information about an ERP software solution that can help your distribution business cut costs, streamline delivery processes, and beef-up departments.

By Aztec Systems, Texas and Oklahoma Microsoft Dynamics NAV and GP Partner

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