1 min read
9 Mistakes Electrical Supply Distributors Should Avoid Managing Inventory
Electrical supply distribution is a competitive business. Many distributors rely on their manual internal business processes or software to help them...
2 min read
Implementing the proper electrical supply inventory optimization system can be as strategic and important to your bottom line as expanding your warehouse or bringing on new product lines. However, implementing the wrong solution or choosing an inexperienced solution provider can have a serious negative effect on your business — from lost opportunities and late orders to bankruptcy in some extreme cases. Consequently, it is imperative that electrical supply distributors take time to clearly define their business processes and objectives before they start their search for new business software. Here is a list of 10 ways profitable electrical supply distributors automate business processes and optimize profit:
Seamless data flow due to integration of systems – when software systems are consolidated into a single solution, business processes are interconnected with data that is reliable and consistent. Data is timely and easily accessible so businesses are able to take on more transactions than with previous systems.- Reduction of staff or re-utilization of existing resources – businesses find that increased productivity and elimination of the need for manual or duplicate data entry enables them to reduce staff, reshuffle employees to other needed positions, or to hire fewer additional staff to support growth.
- Improved sales and repeat sales – with dependable, streamlined business processes, businesses can process more transactions. Additionally, repeat business increases as customers realize the distributor is dependable. Finally, there are some customers who require unique reporting, notification, and reconciling procedures from their distributors.
- Improved sales due to better stocking – some companies are able to remove products that do not sell well and replace them with goods that sell faster. With new visibility into their electrical supply inventory, businesses can track and reduce slow-moving products, enabling them to increase sales.
- Reductions in inventory costs due to more accurate purchasing – when electrical supply distributors have an accurate view of current stock and forecasted demand, they can purchase only what they need when they need it. The resulting increase in inventory turns means less cash is tied up in inventory at a given time. The benefit to the company is equivalent to the cost of capital of that cash.
- Reduction in payments to accounting firms – because the inventory optimization system integrates distribution operations with accounting functions, there is less need to outsource bookkeeping. That allows companies to leverage their accounting partner for strategic financial advice rather than daily transaction processing.
- Reduction in outsourced IT – without scalable business process software, companies have often lost critical data or experienced crashes as systems attempt to keep pace with business transactions. These companies usually end up hiring expensive IT experts to help them recover data. The electrical supply inventory optimization system helps businesses avoid these costs.
- Reduced receivables – another benefit of an integrated, automated business information solution is that invoices can be processed faster. With accounting personnel freed from wrestling with the system, they can stay up on outstanding receivables and make timely collection calls, all of which act to reduce the number of days outstanding for receivables. The benefit to the company is the increased interest on the cash as it comes in sooner.
- Decreases in returns and waste – for some companies, returned goods equal waste or scrap. Increased accuracy of customer orders due to the integration of business processes from the inventory optimization system, can reduce the number of returns (i.e. waste) from incorrect order fulfillment.
- Decreases in redundant IT infrastructure – many companies have been running automated information systems on multiple software platforms and multiple hardware servers. With inventory optimization and Microsoft Virtual Servers, they can consolidate their systems and eliminate annual software and hardware maintenance fees from redundant systems.
2 min read
8 Signs Electrical Supply Distributors Spend Too Much Time Reconciling the General Ledger
Review these common general ledger mistakes electrical supply distributors make. Excessive time is spent in reconciling inter-company due to/from...
1 min read
6 Customer Satisfaction Mistakes Electrical Supply Distributors Make
Review these common customer satisfaction mistakes electrical supply distributors make. Customer satisfaction insures repeat business and can give...