What’s The Real Cost Of Outdated Wholesale Distribution Software?

Putting off investing in wholesale distribution software is like delaying a trip to the dentist — the longer you wait, the worse it’s going to be.

A blog post on the Industrial Distribution website says companies need a “phased strategic plan” to allow the business to grow successfully.

“Without a thoughtfully developed plan and its timely execution, we see many organizations whose growth is constrained by the distribution operations or whose reputations are tarnished through inconsistent or insufficient levels of customer service,” the post says.

Delaying investments in technology systems only causes more problems in the long run. Companies fall behind when they do that, especially when their competitors are making those investments to reduce their costs and offer more competitive pricing.

To become efficient and eliminate duplications or inefficiencies, businesses need updated wholesale distribution software. The best plan is to make incremental investments in technology. Review your IT systems on a regular basis. That’s much less painful than making large investments all at once.

The Industrial Distribution post says companies with distribution systems that are no longer meeting their needs are often “forced to implement short-term solutions” that are expensive and make it difficult to implement a comprehensive distribution management solution. They’ll use outside storage or increase payroll hours as Band-Aids. This takes up valuable time and space, making change difficult.

In many cases, senior managers stand in the way of operations managers seeking upgrades. So, it’s important for operations managers to create a comprehensive plan, including milestones, and sell it to senior executives to get their buy-in.

Senior management must be aware of what will happen if the plan isn’t executed properly, with the consequences of failure clearly expressed in dollars and cents. For example, how much more will the cost per unit be? Understanding the cost of procrastination can help motivate senior managers to get behind an implementation plan.

Source: Industrial Distribution, May 2013