How does an SMB achieve effective distribution management capability?
Achieving effective distribution management capability is critical for any business’s success.
Today’s technology allows any business to market its products globally at any time.
Often, using collaborators is more cost-effective than having direct employees. An established distributor will already have the network of relationships and competence required to introduce a new product to market.
Mainly however the benefit is one of scale. A smaller business with few product lines may find it too expensive to set up in a new market. A distributor who represents several companies and multiple products can immediately benefit from economies of scale.
The benefit of Technology
Deployment of technology is key to making the distributor network reliable and successful. Today, a good cloud-ERP system can route any order received directly from a customer automatically to the appropriate party for fulfillment. A local distributor can be given round-the-clock access to the solution. He/She can enter, update or check the status of any order.
The Cloud ERP can enable a distributor in a different time-zone, allowing transactions to be undertaken 24X7. Today’s logistics systems can give instantaneous real time access to shipping and delivery information to all concerned.
A Cloud ERP could demystify the distribution management puzzle for an SMB. It could be a capable, easy to use and affordable alternative that mitigates all costs in a substantial manner without compromising on performance. It could also provide for e-commerce related distribution management capability. This will result in hassle free inventory management and better ordering and sales.
This is the third article in the series of articles by the VersAccounts Team on “Can small businesses thrive using strategic collaborations with supply partners and customers?”