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5 Wholesale Distribution Challenges and Solutions in the Face of Growth

5 Wholesale Distribution Challenges and Solutions in the Face of Growth

wholesale_distribution_challengesGreet challenges with a smile when business is good.

As a wholesale distributor you expect to see positive growth in today’s healthy mergers-and-acquisition market, but what are some of the potential barriers to success that lead you to believe that this is still not the perfect business climate for you?

Let's review 5 solutions to common challenges in growing businesses face in 2015.

Challenge #1: Personnel

Good employees are a rare thing in 2015. Not only is the older workforce retiring, but no one has been primed to take their place. Changes in the economic landscape have resulted in a more competitive hiring market due to the Recession. In addition, the way employees perceive their workplace has changed their expectations, making it hard to retain the talented employees .

Solution: Simplify your computer system.  Make it accessible from anywhere, and easier to learn. The benefits of this are two-fold: it is rewarding to your existing talent to have an always-accessible system that makes it easier for them  to better balance their work-life commitments, and you’ll be able to cut costs and minimize efforts to train the influx of new employees.

Challenge #2: E-commerce

Timing is everything, and by now you may have noticed that when your website is behind even a second, you are losing considerable business. The cost of  keeping that website up to date can be a serious pain with the wasted time of duplicate data entry and the potential for data-entry errors. But it is more than worth it to ensure business.

Solution: Make sure that you are using an ERP which offers integrated E-commerce tracking and listing. This features true integration to website, automating the process of drawing the correct inventory and pricing data directly from your ERP system, so you will no longer have to worry about duplicate data entry.

Challenge #3: Rising Costs

In today’s economy, everything is simply more expensive. Materials, labor, transportation, you name it. Whether it’s that Affordable Care Act, or just the rate increases for shipping, 2015 means that across the board, your costs are higher for everything compared to what you spent last year. How can you profit if you’re doing the same amount of work?

Solution: Find out where you are making rate increases. It’s easier to keep up with cost increases if you have a good reason to increase your rates. By implementing an integrated CRM (customer relationship management system), you will be able to closely track your customers’ interests, requests and purchases so that you can hone in on where to offer targeted, value-added service – which can justify premium rates.

Challenge #4: Technology

Today, wholesale distributors are aware of the importance of using add-on software options. But different companies use different platforms. It is no question that integrated technology is a must, but with the range of solutions out there, it can be hard to tell which one to choose.

Solution: Definitely choose an ERP that is flexible, dynamic and primed for growth. That way, your integration with many different systems that your business partners use will be simple and consistent. ERP integration with your supply chain, your locations and your customers will work faster than ever and you will no longer be daunted with the transition of new business partners and greet growth with confidence that the transition will be seamless.

Challenge #5: Unexpected Shipping Disruptions

Wholesale distributors are all grateful to see an end to the labor disruptions at West Coast ports which drastically slowed down cargo containers arriving from Asia earlier this year… but there is still a national truck driver shortage. What’s next?

Solution: Expect everything and the unexpected never happens. Get all the info you need to be prepared – and find out how your competitors are thinking as well. The more you know the better, and staying up to the moment with industry concerns is crucial. Instantly download the white paper, “The Outlook for Wholesale Distribution in 2015” for all the updated facts you need.

Wholesale Distribution Special Report Now Available

wholesale distribution challenges

Who we are

Over the past 27 years, SWK Technologies has been consistently rated as a top leader in software sales and consulting. To our customers, we’re more than a reseller: We’re their trusted advisor. Learn about the SWK Tech difference at

If you have questions about how an ERP system can help your business, SWK Technologies will help you evaluate your options. CONTACT US ONLINE or by phone at (877) 979-5462. Since 1989, we’ve specialized in helping customers like you find the right business tech solutions to increase your company’s growth and productivity.

SWK is a business application and consulting company providing strategies and solutions to meet our clients’ information and business management needs. As a Sage Software Authorized Business Partner, Sage Certified Gold Development Partner, Sage Certified Sage ERP X3 Partner, and Sage Authorized Training Center, we offer best-of-breed solutions for accounting and business management, financial reporting, ERP, CRM, job costing, EDI, and warehouse management.

Another version of this article was posted on SWK's Blog on 5/7/2015 - 5 Wholesale Distribution Troubleshooting Tips for 2015

Keywords: Wholesale Distribution Challenges E-Commerce integration, Rising costs in 2015, ERP integration technology, Shipping Outlooks for 2015

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