Distributors know that to earn business and close on opportunities means having a comparative or competitive advantage that handily beats the competition. To accomplish this requires the ability to maximize volumes and purchasing power across the their entire product offering. Large-scale distributors also understand the importance of having timely information. As such, they often use software solutions that allow them to manage inventory more accurately. However, does this necessarily mean that the cost to run enterprise mobility software is out of reach for smaller distributors? Absolutely not! Today, enterprise mobility solutions are incredibly affordable. Most importantly, they offer smaller distributors an opportunity to better manage their inventory, reduce their overall cost structure and empower warehouse personnel with rugged handheld computers. A lower cost structure means a more competitive product offering and that increases the ability of a distributor to close sales. So, what does upgrading to enterprise mobility software mean for your position as a distributor?
- Lower inventory financing costs
- More accurate inventory counting
- Better inventory cost management
- Lower costs through economies of scale
Your enterprise can dramatically reduce its inventory financing costs with enterprise mobility software. How? Simply put, you’ll purchase exactly what you need when you need it. You’ll no longer have to worry about high financing costs on inventory simply because you’ve purchase too much, as is often the result of running inventory via manual processes. More accurate counting means less capital tied up in inventory over longer periods.
Reducing your financing costs involves having more accurate inventory counts and that simply isn’t possible when running inventory on an excel sheet. It is one thing to reduce your financing costs, but it’s something else entirely to retain more cash on hand. Enterprise mobility software will provide more accurate inventory counts, which in turn will help with cash flow management. More capital in your business makes dealing with cyclical business cycles a much simpler process.
There are many factors that impact your inventory costs. Some pertain to purchasing too much, and having high financing as a result, but other costs pertain to purchasing too little and missing out on sales and gross profit. The right software can ensure that both of these cost drivers are better managed. You’ll have what you need to close orders, and not so much that you’ll be left holding product you can’t immediately sell.
Using your economies of scale is an essential aspect of lowering your overall cost structure. Volumes speak volumes about your company’s ability to maximize pricing. Timesheets and manual processes will never be able to provide your enterprise with time critical information. However, with the right enterprise mobility solution, your entire purchasing department will be able to maximize its purchasing power and lower your costs on incoming shipments of finished goods.
A fully integrated enterprise mobility solution isn’t merely about having a software package to track inventory in real-time. It’s ultimately about providing your warehouse personnel with rugged handheld computers and upgrading your entire operations. You’ll be able to lower your costs, improve your margins and provide more accurate information to your market.
Enterprise Mobility Series: