Meeting the challenges of modern supply chain management

How technology is helping transform the wholesale and distribution industry

Are your systems fit for purpose?

The wholesale distribution sector is constantly shifting, changing. To keep up, you need the right tech on board. Businesses with powerful, flexible and future-proofed systems will be more likely to survive – and thrive – even as new challenges emerge. Get all the details in our new eBook, Tech transformation for wholesale distribution.

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The supply chain is one of the most crucial, integral cogs in the wholesale distribution machine. If it's not functioning effectively, that's to the detriment of the entire operation, especially when large amounts of goods are involved. Just like any other supply chain, wholesale distribution businesses face a number of challenges when it comes to supply chain management, including:

Frequent challenges:

• Globalisation - as supply chains become more complex and globalised, managing and coordinating activities across different countries and cultures can be difficult enough without the additional challenge of New Zealand's remote geographical location.
• Volatility - the global economy and political climate are becoming increasingly unstable, making it difficult to predict and plan for disruptions and changes in demand
• Transparency - there's an increasing demand for transparency and visibility over supply chains, meaning wholesale distribution companies are facing the challenge of providing accurate, real-time information about their suppliers, products, and operations

Infrequent challenges:

• Skills shortage - there is a shortage of talent in the field of supply chain management, making it difficult for wholesale distribution companies to recruit and retain the people they need
• Covid-19 - this is one of the more recent obstacles. Since the pandemic began, wholesale distribution supply chains have been massively disrupted on an unprecedented level
• Ongoing delays in the Suez Canal - the blockage of one of the busiest trade routes in the world has had ongoing impacts on global trade, shipping rates and delivery lead times.

It's also worth noting that with the rise of digital transformation, wholesale distribution organisations that haven't innovated and invested in purpose-built tech will struggle to manage their supply chains effectively. New technologies such as AI, IoT, Blockchain and 3D printing are changing the way supply chains operate.

When companies are dealing with broken links in their supply chain, there will be inevitable delays. Customers won't receive their orders on time, and payments can be held up as well.

If supply chain issues aren't resolved, resulting in on-going delays and inventory shortages, customers will take their business elsewhere. This means loss of orders and the income that comes with them. While some importers try to mitigate this issue by buying large amounts of product and keeping it in stock, this also has risks. They’ll need to pay for warehousing, and if demand goes down, they could end up with unsellable stock.

The overarching solution to the challenges of today's wholesale distribution supply chains is technology. With the right tech on board, wholesale distribution businesses will maximise resilience and flexibility. A wholesale distribution business with an efficient supply chain is better positioned to identify upcoming issues and respond proactively, rather than scrambling to deal with problems when they arise.

How fit-for-purpose tech can improve supply chain management

Investing in an Enterprise Resource Planning (ERP) system enables a wholesale distribution company to integrate various business functions, such as manufacturing, inventory management, accounting, and customer relationship management, into a single source of truth. When it comes to supply chains, the right ERP will provide a number of tangible benefits, including:

• Automation - automating certain processes such as inventory management and order tracking can help to increase efficiency and reduce errors
• Improved visibility - real-time visibility into inventory levels, production schedules, and delivery times, enabling better forecasting and decision-making
• Enhanced collaboration - facilitate communication and information sharing among different departments and stakeholders, enabling better coordination and swifter problem resolution
• Reduced costs - specifically those associated with labour, transportation, and inventory management
• Improved security - increase the security and transparency of supply chain processes with records of transactions that can be tracked and audited
• Flexibility - an ERP system can be customised to fit the specific needs of a wholesale distribution company, making it more flexible and adaptable to changes in demand
• Data analysis - ERP systems provide valuable, actionable insights from the data captured from all the different business functions and departments, helping a business to make better decisions

The right ERP solution will provide a comprehensive, integrated view of all aspects of a wholesale distribution supply chain, enabling companies to optimise operations and improve performance.

Wholesale distribution is evolving. Discover all the ways that tech is proving invaluable for the industry, especially in the face of on-going disruption. Download the eBook today.