Information cuts costs in wholesale distribution

Date: 19-04-2017
Author: Alina Răfoi

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In such a competitive environment where the margins are very difficult to keep, one of the surest way to increase the efficiency and profitability of wholesales distribution companies is to reduce operating costs. When companies become uncertain about their income, the business model or the effectiveness of their operations, they gaze back to the information generated by all departments that helps them analyze, find ways to improve and develop winning strategies.

Decrease warehouse costs


Armed with the right information and the ability to analyze this data, you can correct every aspect of warehousing and discover certain patterns of consumption in order to avoid investing in large volumes of stocks that might become difficult to move or calculate, for example, the probability of return of certain products.


The warehouse area has a large share in the success of a distribution business. If it’s not properly managed, the warehouses or distribution centers might cause major damages due to high operational costs and poor quality of services offered to customers.


Refining the supply chain


Using data has implications to the entire supply chain. Large companies such as Amazon uses information and predictive analytics as weapons to help them to continuously improve their operations. Amazon specialists take into account elements such as supply needs, time and type of transport (especially maritime transport where the lead time is much bigger), purchase history by product type and by customer, the economic situation, exchange rate stability and even the weather.


Focus on existing customers


Each company’s strategy is based on maintaining existing customers and winning new business. But when it comes to the balance between the two components, you have consider several aspects, such as the effort and the cost. They say it could be up to six times more expensive to acquire a new customer than to keep an existing customer.


Although it is very important to win new business, never forget your existing customers. Based on the information you have about them, you can save time and money and you can build customized offers.




Trends in the recent years show that reporting and analysis tools became indispensable. With their help, and by moving data to the cloud, companies of any size can thus create strategies based on analysis generated information in their possession.

BITSoftware provides a complete and integrated solution, managing the operational processes, from requisitions to suppliers invoices, from customers orders to invoices, payments, performant warehouse management, e-Commerce for distribution through online channels, financial management and accounting, customer service management and business analysis and reporting.


SocrateCloud ERP for wholesale distribution is an open platform which can be integrated with specialized SFA and TMS software solutions and also enables rapid development of applications that complement the existing functionalities.


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