What does a wholesale distribution business need to be a successful one, is the attitude and a strategy to compete in the market and cater for the demands of the consumer.
And one of those important strategies is good inventory management and customer handling, which has now become easier with the help of technology.
If you are a wholesale distributor or planning to enter the distributorship business, then you know that the orders are in huge volume and must be fulfilled within the stipulated time. And for this, you need to have your own strong backend system for inventory control.
So, in this short article, we will have a look at 7 such ways to run a successful wholesale distribution business.
Keep Inventory Under control & Automate
There are numerous ways to be on top of the demands of the consumer, but the most important one is to maintain enough stocks in your inventory to cater for the demand of your consumer.
In order to fulfil your customer’s demands on time, sometimes you may need to have a huge stock’s volume, but still, you should not stock more than you need, as it could lead you to financial loss as well due to high market volatility.
Inventory calculations like safety stock, lead time, reorder levels, such things also work for a wholesale distributor business.
Along with keeping the inventory under control, you must try to automate the process as much you can. As automation of the inventory system can help you to perform quick operations and be prompt to fulfil your consumer’s demands.
Use of B2B e-commerce
Most retailers say that one-third of their business comes from online sales. This is a digital age, and promoting your business on digital media can bring you more sales and grow your business exponentially.
As you know, people often buy things online from various eCommerce websites, as it is pretty easy and convenient.
The use of such eCommerce platforms can really help the distributorship business, as you can drive more customers towards your wholesale distributor channel.
Have a Trained Staff for your wholesale distribution business
Training is of utmost importance when it comes to running a wholesale Training is of utmost importance when it comes to running a wholesale distributor business. Your staff must be properly trained to efficiently manage the inventories and fulfil your customers demand. Digital transformation of your business can definitely help your business grow and attract more genuine customers to your business.
Don’t compete on Price
Every business person offers excellent discounts to their customers in order to attract and engage them with your brand.
But in wholesale business never compromise on the price to compete in the market. It would be a huge risk to lower your price to compete against your competitors, sometimes it could produce a good result and sometimes it can drag you into huge debts.
So, instead of competing on the price, strive to compete on customer service and satisfaction. If you offer great customer service and fulfil their demand on time, more customers will get attracted to your brand.
Manage Cash Flows in your Wholesale Business
Any retail business has a base of Free Cash Flows and for a wholesale business, it has more importance because the order sizes are quite high and significant.
Wholesalers often offer extended credit to their regular consumers, but you should care about the credit period, as sometimes offering an over-extension period can affect your cash flows and in turn, can trouble the overall supply chain of the business.
Order fulfilment time is very important to retain your customers. But to fulfil your customer’s demand you must have your inventory filled with stocks. Normally, retailers deliver their orders in 24 hours which makes their consumers happy which results in retention of the said customer. That is why order fulfilment is very necessary for the wholesale distributor business.
Building a strong customer relationship is the key factor in running a successful business irrespective of the type of the industry. A long-lasting relationship with the customer can help the business grow, as the mouth publicity from your happy customer can also build your customer base.
So, these are the 7 ways for running a successful wholesale distribution business. To know more about such important things about running a business and inventory management you can log on to zap inventory, where you can learn about all these things in easy and simple language.