A wholesale inventory management system is an integral component of your success strategy as a wholesale business, and here’s your chance to learn everything there is to learn about it!
A wholesale inventory management system is an integral component of your success strategy as a wholesale business, and here’s your chance to learn everything there is to learn about it!
Wholesalers are often the bridge between manufacturers and retailers and as such, they have to buy stock in bulk. This puts them at a considerable economic risk, and if you don’t organise your warehouse and inventory in accordance with the best interests of your wholesale activity, that economic risk can very well turn into economic loss!
In between keeping customers happy and driving profits, businesses tend to neglect inventory management. After all, it requires a lot of attention and effort, and those two elements are exactly what many wholesale businesses just can’t afford to spare.
So, what’s the solution?
Of course, it’s a wholesale inventory management system.
Contents:
Wholesale inventory management is the process that enables wholesale businesses to manage their stock and control their inventory a lot more efficiently. Generally, this framework is focused on acquiring, storing, and tracking goods meant for B2B sales. However, there are many other processes that are also included in the wholesale inventory management procedure.
For example, the wholesale inventory management process involves submitting purchase orders, calculating reorder points and economic order quantities, optimising storage for inventory control, tracking wholesale inventory levels, and executing wholesale inventory audits.
Although none of these processes has to be particularly hard, it can be quite challenging for wholesale businesses to have command over all these issues and make sure that they are not lagging in any of these areas. For this reason, as well as many other reasons, wholesale inventory management is quite a demanding process and requires full focus from your end.
We mentioned that wholesale inventory management can become quite challenging. That’s true! Just a glance at the challenges we discuss below will show you that wholesale inventory management is actually very challenging.
This is perhaps the most concerning challenge for business. As more and more wholesale setups are added to the market, the competition that existing wholesalers have to deal with increases. This means that the pressure to perform and provide wholesale products and services that are unique but also in line with industry standards is quite hard.
Not only that, but there are many retailers out there that are now dealing directly with manufacturers, which means that there is a chance that in the future, the business of wholesalers may diminish. Given all of this, it can often be very hard for a wholesale business to fight its competition and stay afloat.
Any operating business in today’s time and age is attuned to fluctuations in fuel prices. As such, all businesses, including wholesalers, understand that the sudden surges in fuel prices can really impact their profitability as a business. Essentially, this means that your wholesale setup should be agile enough to deal with these fluctuations without being extensively impacted by them.
Although easy to say, this is certainly not easy to do and will require quick thinking and some very smart decisions on your end. Nevertheless, this is a challenge that wholesalers must promptly deal with if they want fuel price fluctuations to not really affect them as much.
Warehouse space is expensive, and this is a challenge that every business must overcome in order to secure a sustainable position in the market for itself. Wholesalers, however, are particularly vulnerable to this challenge. Because wholesalers purchase items in bulk and have to send them in bulk, they need more warehouse space for optimal inventory management, order processing, and everything else that makes up a part of the wholesale fulfilment experience.
For this reason they have to be extremely mindful when it comes to utilisation of their warehouse space: everything from manpower, maintenance tools, and floor space should be managed in accordance with the ultimate aim of decreasing storage costs wherever it is possible, and this proves to be quite a challenge for wholesalers.
Obsolete inventory management is a problem for manufacturers, retailers, and wholesalers alike; but again, it has the potential to be a lot harder for wholesalers. Because wholesalers buy in bulk, they often have surplus inventory, which can lead to obsolete inventory.
Not only that, but other factors that are beyond their control such as unreliable manufacturers, economic shifts, and returns by retailers, they are a lot more prone to having obsolete inventory at hand. Now, the problem with that is that obsolete inventory is hard to take control of and manage properly – because of which, it can cause a range of different problems and is hence, one of the biggest challenges for wholesale businesses.
Your wholesale activity should be organised in such a way that it strikes just the right balance between supply and demand. Lagging on any of these two ends will lead to problems.
Unless your supply resonates perfectly with the market demand you are trying to cater to, you are signing up for disrupted order fulfilment, which can ultimately lead to a decline in customer satisfaction as well as monetary loss. So, there needs to be an effort to find out the exact figures of supply and demand and then satisfy those figures, which is definitely no walk in the park.
If your wholesale activity is not informed by real-time data that helps you make smart decisions and informed choices, you are prone to making panicked bulk orders. So, for example, a supplier has a tempting deal going on for one of their products, and you end up buying dozens of units of said product after giving in to their offers.
However, as it turns out, the demand for this product in the market is very low, and you don’t have a lot of customers who want to buy said product! Not only have you overspent, but you have also created a problem for yourself in the inventory area as these unwanted units will sit in your warehouse and take up space! For this reason, it is absolutely essential for warehouse businesses to make the right purchase decisions that they can actually stand by in the future.
The challenges listed above may seem impossible to deal with, but the good news is that an inventory management software for wholesale can help you tackle all of them, and that too without requiring any extra effort from your end.
Here’s a look into some of the most prominent benefits provided by a wholesale inventory management software:
One of the most helpful benefits of an inventory management software for wholesalers is that it executes accurate inventory counts. If you leave this particular process for manual completion, there are bound to be errors and problems, which will lead to inaccurate inventory counts. When you have an inaccurate record of your stock, it can be hard to accurately align it with customer demand.
However, this problem can be easily combated with the help of a wholesale inventory management software. A wholesale inventory management system automates inventory counts, which means that there is no manual working involved. This solidifies accuracy and makes sure that your inventory is organised in a way that corresponds with your customer demands.
Long story short: for wholesale success, you definitely have to achieve inventory accuracy and with the help of a wholesale inventory management system, you can actually achieve said accuracy without any hassle.
As we have already discussed, most of the challenges set out for wholesalers have to do with budgetary consequences. Warehouse space, fuel costs, and many other elements make wholesale inventory management an expensive process, and you could honestly do with saving every last penny if you can. However, if you don’t have a specialised inventory management software for wholesalers, you will have to depend on paper-based systems. Paper-based systems, although cheap to implement and use, lack efficiency and can simply not allow your business to operate at the level it should be automating on.
On the other hand, an automated wholesale inventory management software will improve your processes in ways that are not only efficient and productive, but will help you cut back on costs and save money for a more improved cash flow.
So, the fact that many wholesalers out there worry about their budget should not bother you anymore, because you simply don’t have to be such a wholesaler! With the help of the right solutions, you can manage your budget for an evolved inventory management experience, without concerning yourself with any of the additional benefits.
A seamless connection between order management and inventory management is an absolute must for a successful wholesale fulfilment experience. For this reason, it is important to try and integrate these processes and make sure that one supports the other in all aspects.
Luckily, this is exactly what a wholesale inventory management software will help you do. It will make sure that your order taking, processing, and shipping methods are well-connected with the state of your inventory, so that there is simply no room for things to go in the wrong direction for you.
With the help of the right wholesale inventory management tool, you can achieve quicker order processing, better delivery times, and can even implement better quality checks. Needless to say, all of this adds up to many an awe-worthy customer experience, which will characterise your brand in a positive light in front of your competitors.
Because wholesalers have to deal with a lot of stock, it is quite easy for things to go askew and their warehouse to become chaotic. The chances of this greatly increase if you are relying on manual processes and not an automated inventory management software for wholesalers.
A chaotic warehouse, again, will increase your spending. Not only that, but if it is really disorganised, it is technically a safety hazard and you should do everything in your control to rectify the situation before it seriously harms or injures you or any other member of your team.
This makes having a warehouse inventory management software even more important, considering that it helps you skilfully organise your warehouse better and make it not only more functional, but also a lot more profitable in terms of solidifying your success as a wholesaler. So, for an organised warehouse, you really do have to look for an inventory management solution that can help you tackle wholesale activity!
Your success as a wholesaler comes down to your sales and revenue. The better the figures for these two things are, the more confidently you can navigate the wholesale industry and expand your customer base.
However, to get more sales you also need to be prepared to deal with more sales. And for that, your inventory activity needs to be as advanced as you can possibly make it. You can do that easily by skilfully integrating the right technology in your processes and using them to make your operations wholly more efficient.
Essentially, a wholesale inventory management software system will help you cater to a larger customer base, which would obviously mean more sales and a better revenue. That is something that most businesses consider to be their ultimate goal, and it’s extremely convenient how a wholesale inventory management software helps you achieve it.
Like every business, wholesale businesses should also focus on making their customers as happy as possible. After all, the more satisfied your customers are, the more chances you have of sustaining your success as a wholesale business, and hence it is something you really need to start striving towards.
Bringing a wholesale inventory management solution to the centre of your warehouse and inventory activity will help you improve the fulfilment experience you provide your customers. An enhanced experience will give them the message that you really do care about them, and that is what all customers want at the end of the day.
It is also important to note that on the contrary, if you rely on a manual way of doing things, you can’t really achieve an enhanced fulfilment experience. This will leave a negative mark on the client’s perception of you and can harm you in the long run.
We have already stressed the importance of real-time data. It helps you make the right decisions for your business. However, getting your hands on this kind of data is no easy task! If you are relying on paper-based systems, you can’t get the insights you need or data that will inform you of your progress properly.
You can only get these kinds of insights with the help of advanced automation technology. Advanced automation technology gives you insights into the performance of your business, which allows you to easily judge where you stand currently. Based on that, you can make decisions on how to strengthen your weaknesses and how to sustain your strengths for a longer period of time.
Eventually, these insights will help you keep in line with any relevant industry standards. Not only that, they will also help you cater to your clients better, and hence solidify your success as a wholesaler.
Enter your details to book a demo of the Canary7 WMS.
So, now we know that inventory management software for wholesale is important. If you want to succeed as a wholesaler, you really have to get your hands on the best inventory management system for wholesale.
However, how do you do that? How do you make sure that the wholesale inventory management software you pick is not only the best one in the market, but is also the absolutely perfect fit for your needs?
As a general rule of thumb, check whether your choice of wholesale inventory management system offers the following features:
As a wholesaler, you really need to achieve a well-integrated warehouse and inventory. You need to be connected to multiple ERP, shipping programs, and in some cases, even eCommerce platforms. For these reasons, the best inventory management software for wholesale will offer you multiple integration options. With the help of these, you can centralise all your data and make sure that it is easily accessible. This will allow you to manage different elements of your business more effectively and will also bring more efficiency to your processes as a whole – which is a great thing!
In order to make sure that there are no major problems going on in your wholesale inventory, you need real-time inventory visibility and control. This will also help you make sure you have the right inventory levels at all times and in general, maintain them over longer periods of time. So, the best inventory management software for wholesale will allow you to have access to your inventory activity throughout, which means that it will grant you complete visibility and control over your stock; which is essentially the only way you can make sure that your pace matches consumer needs.
We’ve already told you this, but your supply and demand figures should align seamlessly in order for you to make the right decisions for your wholesale activity. This can only be done if you have accurate insights into your supply as well as accurate forecasting that can help you predict exact consumer demand. The best inventory management solution for wholesalers will provide you with both of these things, and you can finally make sure you are not lagging behind in this area! Once you do that, you will see an unbelievable positive change in your activity, so these capabilities are something that your wholesale inventory management system must have.
Your wholesale inventory management system should help you streamline other elements of your logistics as well. This is why the best one will help you organise your warehouse, speed up your pick and pack processes, make your shipping processes completely error-free, and boost customer satisfaction with your logistics in general. What you should look for, therefore, is a software solution that provides you with holistic support and multi-dimensional efficiency, through which you can ensure that all areas of your business are properly covered and that you are not lagging in that regard.
Harnessing and leveraging accurate data is not only important for your inventory, but also for other departments of your business such as marketing, sales, and so on and so forth. However, in order for these departments to be rightly informed with data, you need to get that data from a foundational level i.e. your inventory. The best inventory management software for wholesale will allow you to employ it at this level, and then equip you with data analytics that will give you a better look into your insights as well as allowing you to use it in other areas of your business as well.
Wholesalers don’t have it easy; the stakes are quite high and they consistently have to put in 100% effort and dedication in order to make sure that their efforts aren’t going to waste. This is especially true when it comes to wholesale inventory management.
However, with the help of a wholesale inventory management software, this area of their business can be significantly simplified!
If you are a wholesaler looking to improve your fulfilment process, all you need to do is introduce a specialised inventory management system for wholesale to the picture and you will surely be good to go. You do need to make sure that you choose the best solution for this job – but let us make that easier for you.
Meet Canary7; the ultimate wholesale inventory management solution that will make it easy for you to enhance your wholesale fulfilment experience like never before.
