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Benefit from modern Microsoft Dynamics 365 Business Central in the Cloud to manage your supply chain end-to-end.Currently, the distribution and supply chain industry have been stretched to their limit, forcing Distributors to evaluate solutions that can help them compete in a rapidly changing environment. Distributors who want to satisfy customer demand need to deliver the enhanced digital experience that customers and vendors expect while lowering internal costs.
Manufacturers are going directly to your customers
As manufacturers expand and acquire technology to manage logistics efficiently, they often bypass distributors and sell directly to end-users. Large manufacturers benefit from national distribution systems, which makes them less dependent on their distribution partners.
Distribution & Supply Chain Challenges
Retail giants are holding distributors to a higher standard
Big Box retailers like Target or Walmart are demanding faster delivery times with substantial penalties for late shipments. Product information must be accurate, or distributors face stiff fines. Your supply chain needs 360 visibility to meet retailers demands.
Transportation costs are tied to fuel prices
Tight margins and unforgiving deadlines don’t leave enough room to absorb unexpected costs. The volatile fuel market can affect wholesale operating costs and, ultimately, your bottom line. Smaller distributors don’t have the leverage to pass on extra fuel surcharges like larger companies can achieve through negotiations with suppliers.
Fluctuating inventory values are difficult to manage
When costs change rapidly, your competitive edge suffers. If you don’t have a business system that can respond to changing costs and adjust customer pricing automatically, you may experience losses that are difficult to recover. To complicate matters, you can’t match competitors’ prices if your margin is eaten up by fluctuating costs.
Meeting compliance regulations and keeping workers safe
Transporting, storing, and handling of products may pose potential hazards to your people. Without the right technology in place, meeting industry compliance demands can be a burden for distributors, who need to Implement and enforce strong safety standards through automation.
Manufacturers are consolidating and increasing market share
Many manufacturers are consolidating with each other, which affects the wholesalers buying power. The big-box distributors take advantage of manufacturer discounts for large purchases – something that smaller distributors can’t do.
Centralized buying gives large retailers an advantage
Regional stores are facing challenges to remain competitive with the trend towards centralized buying from larger distributors. Regional distributors can’t compete with lower prices and higher volumes offered by a centralized purchasing strategy. Centralized buying enhances negotiating power with suppliers and streamlines delivery.
Overcome distribution & supply chain challenges with Microsoft Dynamics 365 Business Central ERP from CBSi
CBSi deploys Microsoft Dynamics 365 Business Central software for superior supply chain visibility, rock-solid financials, and more.
Many manufacturers are consolidating with each other, which affects the wholesalers buying power. The big-box distributors take advantage of manufacturer discounts for large purchases – something that smaller distributors can’t do.