How NetSuite Resolves the 3 Main Growth Barriers for Wholesale Distributors
Is your Wholesale/Distribution business struggling to grow? Research from the Department for Business states that an enormous 99.9% of companies in the UK are SME's. Have you ever wondered why it is so hard for businesses to be in that 0.1% and stand out amongst the majority? In this article, I have outlined three barriers to growth for the Wholesale Distribution industry and how NetSuite can be a solution.
1) Inventory Issue
Many Wholesale Distribution companies adopt RFID tags, which can prove to be extremely costly, especially for a growing business. In other instances, some companies struggle to find the right system to help them operate effectively. The result? Inefficiencies, time wastage, and order delays.
How can you save costs while simultaneously utilising technology which supports a complex and growing operation? The answer is NetSuite - it offers a W/D system, allowing you to manage your inventory in a 'best in a class' way. And it doesn't require draining your companies' budget.
Below are a few features that NetSuite's Wholesale Distribution software offers:
Inventory tracking in multiple locations
Distribution Requirements Planning
2) Keeping up with Growth
Data from the British Business Bank has quantified that 1 in 3 businesses want to grow but are unsure how. Additionally, 50% of companies fail within the first five years - why is this?
As businesses grow, their operations become increasingly more complex, resulting in inefficiencies and inevitable mistakes. What are the barriers that prevent companies from growing seamlessly?
Cash flow management: This is the second biggest reason why businesses take a tumble. Increased inventory costs and IT resource costs while still trying to get more cash in are some of the many struggles.
Responding to the competition: Market leaders are quick to respond to dynamic market changes and possess the resources required to stay ahead of the game. For new businesses seeking growth, they face pressure from saturated markets and fail to have growth-supporting systems in place. Hence, this allows them to be not only reactive, but proactive.
Operational Inefficiencies: As your business grows, your operational framework must adapt to keep up. Does your system require the re-entering of data? Or do you have multiple systems providing snippets of each business area? These are examples of time and cost wastage. They also become increasingly more unsustainable as the business grows. A pressing issue - operational inefficiencies will result in tensions with meeting production schedules and shipping dates. The result? Missed sales opportunities, unhappy clients, therefore, growth decline.
NetSuite grows with you - as you grow your business, it adds the modules required to make it as seamless as possible. Financial management is a tool offered by NetSuite, which allows you to take all of your business into consideration and gives you real-time visibility on your financial performance. Hence, you can assess where your business is spending too much and streamline processes to save time and money.
NetSuite is one system that stores all data. Are you fed up with relying on one system to store all your data? What if your building burns down? The cloud is the answer. NetSuite provides real-time actionable data, which can be viewed by all employees, no matter where they are in the world! The result? Better decision making, goal synchronicity, and not worrying about losing critical data if your building burns down!
4) Customer Support
You ring a supplier regarding an order, and you get connected to a call centre and have to listen to elevator music for 2 minutes before talking to a representative - sound familiar?
As Wholesale/Distribution businesses grow, it is not uncommon for customer service to take a backseat due to overwhelming queries - this accumulates time and monetary costs. However, it has been gathered that 54% of all consumers say that they have higher customer service expectations than they did just one year ago. Customers have high sovereignty, and hence, excellent customer service is required for the growing business to win in the market.
Do you wish you had support teams that can access customer information at any time? How about accelerating case resolution
time by providing support reps with complete customer visibility, and with appropriate case assignments?
NetSuite is the answer - it has built-in Customer Relationship Management (CRM). This gives you a 360-degree view of your customer, streamlines lead-to-cash processes and presents visual forecasting.
Bringing it All Together
All in all, operating a Wholesale Distribution business without the benefits of cloud technology is proving to be troublesome for companies seeking scalability and cost reduction. NetSuite provides a sophisticated platform which streamlines processes, gives you easily accessible, real-time data and enables you to future-proof your business.