How SAP Business One Solves Growth Challenges for Wholesale Distributors
Are you feeling stretched thin in your wholesale distribution warehouse? You’re not alone. The wholesale distribution industry has experienced rapid innovation and change over the past several years, and there are no signs of a slowdown anytime soon.
Many distributors feel the squeeze as they struggle to move away from manual processes and toward increased automation and process efficiency as they scale. Areas like complex planning and forecasting, process automation, operational management, and data visibility are often among the most pressing challenges for distributors seeking to expand their operations.
SAP Business One functionalities help you address these issues strategically, giving you the data insights, forecasts, and agility to respond to market demands and drive sustainable growth.
1. Simplify Complex Planning and Forecasting
Accurate planning and forecasting are critical for determining what to buy and when to buy it. According to Gartner, companies that excel in demand forecasting experience a 15% reduction in inventory carrying costs. To achieve these outcomes, wholesale distributors need to analyze historical data and trends so they can maintain optimal inventory levels and predict future demand.
With SAP Business One, you can leverage advanced tools to access deep data insights and understand trends in areas like:
Inbound Container Management/Tracking – Track shipments and delays, estimate landed costs, and improve customer communication to deliver products as expected and respond quickly when unexpected problems occur.
Inventory Analysis – Optimize inventory control, stay up to date on stock levels at multiple warehouse locations, and streamline inventory replenishment on your timetable. Address fast and slow moving inventory items to maintain optimal stock and analyze carrying costs.
Material Requirements Planning – Manage item requirements so you can meet customer demand, determine buying needs and schedules, and meet light assembly material requirements.
2. Automate Critical Processes
Manual processes leave you vulnerable to errors and inefficiency. Automating key processes such as order processing, inventory management, and invoicing improves operational efficiency, reduces manual errors, and helps you gain a competitive edge. Automation also helps you improve operations overall, boosting productivity by up to 30% according to a report by McKinsey.
SAP Business One makes warehouse management simple and straightforward by streamlining:
WMS Implementation – Implement the WMS at any stage of the customer life cycle, including product, warehouse locations, packages, and pallet labeling.
Workflow Automation – Automate workflows and close gaps in the supply chain so you can optimize warehouse management, shipping operations, order management, and more.
Inter- and Intra-Warehouse Movements – Record movements and adjustments precisely to maintain accurate inventory.
3. Operational Visibility and Coordination
Siloed information makes it difficult to leverage data insights effectively. According to Aberdeen Group, companies with high operational visibility achieve a 6% increase in on-time deliveries. Without those key data points, distributors may be slow to respond to changing market demands, resulting in missed opportunities and loss of competitive advantage.SAP Business One improves visibility by delivering the real-time insights you need to coordinate complex workflows, respond to market trends, and increase speed to market. You can also streamline sales and order processing from first contact to fulfillment with custom pricing structures, discount rules, and order workflows.
Elevate your functionality even more when you integrate additional tools and technologies such as:
Bizweaver – Bizweaver integrates systems so you can catalog data feeds from suppliers including costs, availability and product updates. It also allows you to synchronize transactions, automate processes, and connect with other digital platforms.
Versago – Versago integrates suppliers, customers, and employees to the systems you use through designated portals where they can access needed tools and information.
4. Relevant Data and Reporting
Another disadvantage of siloed data is that you won’t be able to create the functional reports you need to make informed decisions. This can impact your overall business growth as well as day-to-day productivity and efficiency.SAP Business One solves this problem with tailored dashboards and reports that track key metrics. With these insights, you can identify opportunities and make course corrections quickly. For example, one Third Wave customer used the platform to unify disparate systems and data, eliminate time lags, and scale the business. With greater data visibility and more detailed information at their fingertips, they were able to more easily access inventory and shipping data and reduce delays in order fulfillment.
You can also build operational and financial reporting dashboards to monitor:
AP/Purchasing Landed Costs – Estimate, allocate, and correct landed costs to ensure accuracy.
Batch and Serial Costing of Goods – Pinpoint the exact cost of goods sold to achieve better margins and make more informed decisions.
Inventory Analysis – Maintain efficient, “just-in-time” inventory to keep carrying costs low and optimize cash flow.
Implementation failure is not an option for growing businesses. SAP Business One gives you the agility to streamline operations, meet evolving customer demands, and drive growth. By simplifying planning and forecasting, embracing automation, enhancing operational visibility, and leveraging data-driven insights, wholesale distributors can position themselves for long-term success.
Partnering with trusted experts like Third Wave helps you maximize the capabilities of SAP Business One and stay ahead of the curve. We work closely with you to understand your business needs, implement solutions, and provide ongoing support to ensure success. As your implementation partner, Third Wave can help you leverage the power of SAP Business One to grow your business and build for the future.