Managing a distribution and logistics company in the age of speed requires a thorough digitization and automation process to keep up with the advancements. According to Gartner, over 50% of companies in the field are convinced that software solutions have a strong impact on business development and profitability.
How to increase the profitability of a distribution and logistics company? With the right software solutions!
With more online shopping, manufacturers and retailers need to increase their warehousing operations, with consumers increasingly expecting same-day delivery. This could be costly and, with labor being the highest cost of operating in warehouses, increasing the level of automation in warehouses is likely to become much more common.
Given the time we are going through, many companies have been looking for ways to support their business plans and adapt to new requirements. In particular, the retail, distribution and logistics services companies have adapted to the new requirements of the market, making the transition to omnichannel. And for this they needed quality software solutions, focused on the customer and the reaction speed.
Companies in the distribution industry need to adapt quickly to maximize performance, increase efficiency and profitability, and ultimately maintain customer satisfaction, especially as they meet growing demands. The need to control and streamline business processes are essential conditions for success.
An ERP solution automates and streamlines distribution processes and provides accurate information in real time, so that any situation can be identified and resolved quickly.
In an industry as competitive as distribution, the one that adapts the fastest to customer needs, the one that has the ability to evolve, to become productive and efficient, survives.
Do you have a distribution company and work with more than 2 software? SocrateERP is the all-in-one application that supports your business in these difficult times. Moreover, if you have decided that now is the time to move to a complete solution, you can benefit from funding from European funds of up to 90%. More information on how to purchase SocrateERP with European funds can be found here.
SocrateERP is part of the new generation of business software being a modern and flexible solution, in the cloud, "open" through openAPI, which allows integration with other applications and devices that allow communication through API. You can find more information about the available integrations here.
Stocks are money, money is blocked. Therefore, some of the most important tasks in both production and distribution are to reduce stock levels and at the same time avoid out-of-stock situations. A fine line and a fairly difficult balance to maintain if there is no continuous tracking and optimization process implemented.
The auto parts distribution business exceeds the 1 billion euros in annual sales. Over 50% of sales are generated by the top 10 distributing companies, with the remainder being shared among other industry players.
The development of companies in this sector depends on how they integrate in their strategy a number of factors such as:
- Improving customer experience through the quality and diversification of parts and accessories portfolio
- Diversification and structure of customer portfolio
- The usage of modern technologies with a very significant impact on the development and growth of the competitive advantage
Whether you distribute bricks, adhesives, mortar or cement, the building materials distribution industry is full of difficult requirements throughout the supply channel. Distributors of building materials face demand fluctuations depending on various factors, such as weather conditions, seasonality, etc. Distributors of building materials need a scalable and flexible ERP solution with advanced functionality capable of meeting the requirements of each department from receiving the order, processing it, inventory supply and control and delivery until the invoice is registered and collected.
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.