Posted on 10th Feb 2023
Challenges & Opportunities In the Trading & Distribution Industry
Globalization has been facing headwinds for several years. It is a challenging period for the Trading & Distribution Industry in a world of solid rivalry and poor profits. Supply chain uncertainty, inventory concerns, and increased competition from e-commerce giants like Amazon have made competing difficult.
Distribution may also be an internal operation of a manufacturing organization, but the role of keeping supplies and providing for the consumer remains the same. The issues that Trading & Distribution Industry organizations confront are significant, and they require a unique solution to assist them in managing their operations and delivering scalability for long-term growth.
Lack Of Visibility Into The Supply Chain
Properly managed supply networks and complete insight into supply chain activities are crucial for a healthy organization in the Trading & Distribution Industry due to the complexity of the industry and various risks. Supply chain visibility is essential, as it involves knowing the location of inventory, following its movement and delivery, and understanding customer behavior.
However, companies often prioritize the human aspect of their operations, making it challenging to manually manage financial, commercial, and reputational risks while competing with other business goals. Prioritizing supply chain visibility can create a transparent universe of transactions, benefiting businesses in the long run.
High competition from manufacturers
Manufacturers and retailers are eliminating wholesalers from their supply chains, creating competition. The rise of marketplace platforms like Amazon has intensified competition, leading to "supplier disintermediation." Distributors must differentiate themselves and meet B2B customer demands for customized offerings. However, companies often prioritize the human aspect of their operations, making it challenging to manually manage financial, commercial, and reputational risks while competing with other business goals. Prioritizing supply chain visibility can create a transparent universe of transactions, benefiting businesses in the long run.
Data has become one of the distribution industry's most important assets. However, if you use manual procedures and antiquated systems to handle the massive amounts of data created daily, there is only one way to take it from an organizational aspect. Modern supply networks are overburdened and under pressure to make rapid judgments. Accurate statistics based on the most recent accessible data might spell the difference between a struggling and thriving distribution firm.
1. ERP software can integrate all data sources to provide real-time tracking of inventory levels, production schedules, and delivery times for the lack of visibility into the supply chain. This can lead to better decision-making, avoiding stockouts, and improving customer satisfaction. 2. Globe3 Distribution Software can help distributors compete with manufacturers directly by providing customized offerings and faster delivery times. 3. Globe3 ERP software can integrate various systems for a siloed approach, breaking down silos, promoting collaboration across departments, and automating processes to increase productivity and profitability.
This is an excellent time for T&D industry as there are Productivity Solutions Grants (PSG) for the company to claim up to 50% of qualifying costs from the Singapore government. An excellent management platform, such as Globe3 MRP software, is critical for any distribution firm. Distributors may reallocate money to optimize rebates and incentives among manufacturers and decrease operational spending to bargain more effectively with suppliers. You can now wave goodbye to all manual business processes and grant yourself to focus on the bigger goals with the help of Globe3 ERP. Contact us now for a free demo, or contact us at sales@globe3.com!
Siloed System
With the above challenges, ERP software serves as an opportunity to counter them.
Conclusion