5 Ways Distributors Can Automate Workflows And Create Leaner Processes

Distributors should establish automated workflows to reduce lag time between processes and increase the accuracy of data.

Manual processes such as data entry are more time-consuming and less accurate than an automated transfer of information. Integrating systems internally and externally can help to create a leaner supply chain, yet distributors don’t always take advantage of the opportunities available to them through wholesale and distribution software.

Here are five areas where distributors could use technology solutions to increase efficiency and accuracy.

1. Disparate systems: Businesses often don’t have systems that are capable of working with other systems. For example, they may have a service system that’s not integrated with the accounting or CRM system, causing a lot of inefficiencies. Make sure everything can work in concert, even systems that aren’t in use all the time.
2. Supply chain integration: Electronic data interchange (EDI) is a great tool for integrating distributors with their vendors and customers. It can pass information electronically back and forth, so it’s very efficient and accurate. It’s a great way to create some efficiencies and a leaner process, even outside of the organization.

   Of course, not everybody is in a position to take advantage of EDI, depending on the volume of information they transmit between vendors and customers. Businesses with low transaction volume often choose not to invest in EDI because it’s not worthwhile.

   Distributors with higher volume, though, should use it to achieve efficiencies. A post on the Cloud NetSuite blog highlights some of the benefits of cloud EDI solutions. One advantage is that they are modular, meaning companies can add capabilities “progressively and … don’t need to commit to a full rollout of the entire EDI toolkit at once.”

   Another advantage of cloud EDI is that there is no version lock, allowing distributors to easily and cost-effectively grow and adapt in the future. “On-premises EDI solutions are fixed in time and can be inflexible and costly to update as new marketplaces and opportunities open,” the post explains.

3. Logistics systems integration: If the logistics system is not integrated with the ERP system, inefficiencies often result. According to a post on the Supply Chain Management blog, cloud solutions can help integrate all components of the supply chain.

   “To achieve the integration of the whole supply chain and cooperation, cloud services allow the companies to organize information more efficiently. … One change in the cloud, [and] every related party will be updated immediately for the change,” the post notes.

4. Mobile solutions: Mobile devices can greatly increase efficiency by cutting out the lag time between processes. For example, a salesperson could enter a quote or an order with a mobile device while at a customer’s office. That would then automatically transmit back to the home office and start the process rolling much quicker.
5. Reporting and analytics: Distributors are missing out if they don’t tap into reporting and analytical functions built into many distribution ERP systems. They lose the ability to analyze customer purchase history, which they can use to identify, upsell and add onto sales opportunities.

According to a post on the Learn Lean Logistics website, ERP systems help businesses keep track of large amounts of data across departments. They support lean operations because they allow businesses to manage resources more effectively.

“ERP systems make sure that the correct product gets to the correct customer in the correct quantity in the correct timeframe,” the post explains. “This helps ensure customer satisfaction, and after all, satisfaction and retention is the ultimate goal for any business.”

Distributors looking to make their organizations more lean should explore these five areas to see if they could benefit from technology solutions. Integration and automated workflows are vital to ensuring that your business is operating as efficiently as possible.