For the average small or mid-size distributor competition takes place at the local level and efficient supply chain process are critical to success. In order to grow, distribution management software can be leveraged to streamline operations and expand seamlessly into new markets.
“For most distributors, demand is closely linked to local economic activity. The profitability of individual companies depends on efficient inventory management and order fulfillment operations,” said Hoovers in a recent report. “Large companies can supply customers with a wider range of goods and in more markets, but smaller distributors can compete successfully by carrying specialty products or providing add-on services.”
Non-durables including food goods, petroleum products and pharmaceuticals account for about 55 percent of the distribution market according to Hoovers. Each of these sectors sees heavy regulations for FDA and other agencies. Small distributors now have access to management software in the cloud, and there is a variety of cloud based distribution management software solutions on the market. But few providers offer support for regulatory compliance.
Unlike many organizations, myGPcloud is able to provide software in the cloud with audit trails, user access restrictions and other compliance management tools, as well as a dedicated compliance officer and support staff to assure any security and compliance needs are met.
As baby boomers are headed toward retirement, the distribution industry will soon face a recruiting challenge, according to Distribution Center Magazine online.
Millenials who are now accustomed to intuitive software and working from mobile device will lack the experience needed to operate outdated or sluggish systems. But more importantly, because the new technologies like cloud based distribution management software are more efficient and open doors to new lines of business, and because they often deliver a user interface that similar to what young people are already using in their personal lives, millenials will be proficient right out of the gate.
What’s more, with Microsoft Dynamics GP’s distribution management software, there are tools imbedded for human resource management that will help gain a competitive advantage in recruiting and maintaining new talent.
As industry analysts predict that the distribution industry will see growth during 2015 to 2017, according to National Association of Wholesale-Distributors, small organization that hope to grow through the remainder of the decade will need some form of cloud based distribution management software to keep the competitive edge and take advantage of the overall industry growth that is expected in coming years.