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Top 10 Steps to achieving success in modern distribution

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If you are a distribution company, get a taster of our free whitepaper and discover the key 10 steps to follow to achieve success.

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Top 10 Steps to achieving success in modern distribution

  1. 1. THE EVOLVING WORLD OF DISTRIBUTION “As a £30bn industry which supports more than 1.1m jobs, wholesale distribution makes a significant contribution to the UK economy” Source: 2015 Annual Review, FWD.
  2. 2. WHAT ARE THE MAJOR CHALLENGES FOR THE DISTRIBUTION SECTOR? • Increased logistics & fuel costs • Flexed competitive landscape – as manufacturers and retailers offer more to customers direct • Fluctuating interest rates affecting import and export • The rise of the digital economy
  3. 3. MAJOR FACTORS DRIVING CHANGE IN DISTRIBUTION • The sector has progressed from “box shifting” to a customer-centric service business model – where success comes from added value throughout the customer journey • Supply chains are no longer linear; communication and collaboration is multi-directional and often circular in nature
  4. 4. CUSTOMER IMPORTANCE IS EVOLVING – SERVICE, CUSTOMISATION & TRANSPARENCY • Clients are increasingly hunting by price and switching from one supplier to another with ease • Shorter lead times are expected • Customers want to see “track and trace” and delivery flexibility within their order process
  5. 5. THE RISE OF E-C0MMERCE “E-commerce and multi-channel or cross- channel demands impacts 87% of companies, affecting order, inventory and fulfilment processes.” Source: Aberdeen Group
  6. 6. THE OMNI-CHANNEL APPROACH Increasingly prevalent, it helps distributors achieve a direct-to-end-consumer delivery model, 61% of the sector follow this blended approach. Source: B2B and B2C Convergence: A Call to Action, Aberdeen Group
  8. 8. 1. PROFILE IS EVERYTHING – PROFITABLE PRODUCTS & CUSTOMERS Take a step back from your customer acquisition and cross/up sell strategy. Where are you prioritising your resource and promotional discretion?
  9. 9. 2. INVENTORY OPTIMISATION IS VITAL TO CASHFLOW Much of your capital is tied up in inventory, deferring and realising the revenue on stock. Pressure is added through “just in time” orders from customers. Integrated, automated 2-way systems allow information to flow between sales, warehouse, procurement & logistics.
  10. 10. 3. OPTIMISING FULFILMENT RATES Fill rates are a core KPI that measure the ability to fulfil orders from stock as and when. Accurate knowledge of core customers and core product lines is essential in order to achieve 90%+ fulfilment rates. Start with your top 20% of products (by sale and/or profit). Build up a historical picture to better anticipate seasonal swings in demand and set realistic and competitive SLAs.
  11. 11. 4. BIG DATA – RECOGNISE AND REDUCE ERRORS “Over 90% of dissatisfied customers never complain – they just go elsewhere to meet their needs.” Source: Ferrell & Hartline Capture all customer interactions, analyse them in order to improve service delivery. SLAs can be adhered to via the use of notifications and alerts in real time.
  12. 12. 5. ON-TIME DELIVERY Eradicate variability from transit times and positively impact your ability to manage fuel consumption and costs. Empower delivery drivers to be more efficient at the “last mile” with the right tools and information. Have the means to reschedule easily, make partial deliveries, create, send and store PoDs, and track deliveries.
  13. 13. 6. OPTIMISE DAY-TO-DAY OPERATIONS Maintain and motivate your workforce with the right tools and expectations. Unify what’s happening on the warehouse floor with the rest of the business. ECR models (Efficient Consumer Response) provide real time stock views and minimise storage costs and loss of revenue.
  14. 14. 7. REDUCE HUMAN ERROR IN THE WAREHOUSE – DATA CAPTURE & CYCLE COUNTING Review daily and manual processes where errors occur - such as managing stock replenishment, inventory control, ordering, shipping and returns management, order cycles and service policies. Look at an automated data capture system that integrates with your business management; reducing human input error, increase compliance and avoid double entry.
  15. 15. 8. INCREASE AVERAGE ORDER SIZE & LOWER COSTS The basics cannot be ignored – achieve service excellence first in order to guarantee repeatable business and then grow share. Address offline processes before expanding online, otherwise internal weaknesses will be exposed to customers, prospects and partners.
  16. 16. 9. INTERNAL & EXTERNAL COLLABORATION ACROSS THE SUPPLY CHAIN In the modern distribution environment, with mobile workers and disparate pieces in the supply chain, firms need to work harder to support a natural and productive collaborative workspace. Collaborative technology that echoes intrinsic human behaviours helps teams feel more connected, informed and empowered.
  17. 17. 10. BRINGING IT ALL TOGETHER – THE RIGHT BUSINESS MANAGEMENT SYSTEM Address the steps so far and get a 360 degree view to show where you have been, where you are going and how to get where you want to be. Business systems such as Microsoft Dynamics NAV and Dynamics 365 help manage change, identify profitability, measure effectiveness, optimise inventory and develop relationships.
  18. 18. FIND OUT MORE… Download the full whitepaper for free Visit the website
  19. 19. ABOUT US… Prodware UK specialises in the implementation, integration and maintenance of sector specific ERP and CRM business management solutions based on Microsoft Dynamics NAV and Dynamics 365 (AX & CRM). As a Microsoft Gold Partner, we have developed industry solutions for manufacturing, distribution, professional services and holiday park organisations in addition to innovative software for mobility and e-commerce that integrates with business management solutions. A Tier One Cloud Solution Provider (CSP), Prodware Group create, integrate and host IT solutions for businesses. Prodware Group serves more than 20,000 active clients and is the largest Microsoft Dynamics partner in the EMEA region. Prodware Group is present in 15 countries and has a wealth of experience in providing global IT solutions to international customers.