Distribution centers have been under pressure for some years, and the forecast for 2022 remains poor. And, as companies attempt to recover from the obstacles posed by the global epidemic, several distribution hubs are looking for new ways to increase efficiency.
So, what is the future holding for distribution management in 2022?
How to Get Ahead with Supply Chain?
Consumer demand continues to outstrip manufacturers‘ and distributors’ ability to produce and transport goods. Manufacturers are unable to increase capacity because they are experiencing product and shipment delays. Ports and warehouses are overflowing with finished goods. Furthermore, there are just not enough drivers to move goods, resulting in greater freight expenses.
These concerns will persist in 2022, with none of them being fixed fast or fully. The supply chain sector will have to adapt to this new reality.
- Forget about the just-in-time orders.
- Invest in creative strategies to recruit and retain employees while managing the labor cost.
- To protect against any service gaps, distribution centers need to expand their networks by forming more alliances.
- Invest in technology to make informed decisions.
While we are talking about technology, it can ease the entire process, and nothing here is better than an ERP in supply chain management SCM.
However, these are just the main areas where every supply chain industry has to improve. There are other areas too, and Dynamics 365 can help. Let’s talk about them:
7 key areas for modernizing distribution innovation
It’s still basic sense to keep enough inventory on hand to meet the demand you can expect based on your company’s history, and to avoid locking up funds in overstock—but it’s no longer adequate.
You always have full visibility and useful insights in Microsoft Dynamics 365 to tell you what inventory levels are currently at and how they are trending. The master planning module in Dynamics 365 is the heart of the inventory management system. You won’t have to navigate data silos because all inventory information is stored in a single source.
What if dealing with your firm was the part of their day that suppliers and trading partners looked forward to the most?
On the strength of your items, you can go a long way. However, if doing business with your firm is simple, you may expand your market reach and brand value even more. When you connect with organizations that are much larger than your own or that buy from or distribute to a huge number of enterprises that are comparable to yours, you can attract the kind of attention that makes you stand out.
Microsoft Dynamics 365’s customer relationship management (CRM) capabilities enable you to track and manage commitments, interactions, and experiences with vendors and trading partners.
It can take much more effort and money to regain client goodwill after a terrible experience than it does to obtain it in the first place. When adverse internet evaluations remain discoverable by search engines and on merchant websites, recovery becomes considerably more difficult.
When dealing with large volumes, you may want to test sample shipments; at random. You’re already testing vendor products or components if they’re critical to your manufacturing and distribution of high-ticket, partially customized items.
Pricing, on-time delivery, and professional communications all play a role in a vendor’s total performance, in addition to product quality. Distribution management software like Microsoft Dynamics 365’s scoring capabilities allows you to capture and track such information over time. You can examine individual vendors’ performance or group them into categories.
You outsource customer experience to a degree when you partner with retail leaders. Customers transact business, are billed, and address initial questions to them, not you, in the event of a problem. When you deal with a retailer that portrays itself as “fanatical” or “obsessed” about its customers’ experiences, you must meet their high expectations, or the partnership will fail.
You must keep your end of the bargain by keeping your promises to customers and providing high-quality goods on time, with accuracy and speed in all of your procedures. You may utilize Microsoft D365’s CRM tools to manage your customers and obligations, as well as get a complete, real-time picture of your performance against customer experience and service levels KPIs.
Some distributors sell their items through online retailers, while others choose to sell them through their channels. You’ll have your criteria for doing so, such as profit margins, market share, brand building, and customer segmentation, and Microsoft Dynamics 365 reporting can help you target the right product for the right market and channel.
For many distributors, reminiscing about their company’s past may conjure up images of isolated data sources and disorganized operations. Similarly, sustainable practices were formerly isolated in specific fields. Although the company may have had a strong sustainability message for its consumers and was ecologically conscious in its office, expanding this effort to manufacturing and logistics may have been more challenging and costly.
Microsoft Dynamics 365 can assist you in advancing supply chain sustainability. You can, for example, include ecologically friendly manufacturing, packaging, and shipping in your vendor ratings.
Complying with the terms of your retail trading partners’ contracts may be difficult enough. Compliance can become a dangerous and costly effort when you have to meet regulatory demands for financial management, sustainable sourcing and distribution, end-to-end tracing of components and materials, or product safety. Compliance restrictions can get even more complicated if you expand your distribution to multiple nations.
Distribution management ERP such as Dynamics 365’s compliance and quality management dashboards and analytics tools can help you here. It can assure that your company’s operations and processes satisfy the appropriate requirements.
Get in touch
It’s difficult for distributors to develop and succeed in an ever-changing market. DFSM, on the other hand, can assist by using Dynamics 365 to provide better and more successful digital supply chain strategies. So, if you’re seeking a partner to help you deploy the best ERP system for wholesale distribution, now is the time to reach out to DFSM. Our experts will take your details and suggest the best ERP for wholesale distribution for your business.