While the pick, pack, and ship method of wholesale distribution may seem straightforward, the sector faces a number of particular difficulties that put additional pressure on wholesale distributors to continuously improve their procedures.
The following are the three main challenges in wholesale distribution:
- Manpower – In order to stay competitive, distributors must always look for efficient ways to distribute merchandise to final retailers while using the least amount of manpower possible. Poor delivery performance might be a result of unsatisfactory pay, which can then impair efficiency and reduce margins.
- Margin shrinkage- A key factor in determining a company’s overall revenue and profitability is the profit margin. To boost operational efficiency that enables them to attract clients at competitive, wholesale pricing, wholesale distributors and their retailers must work extremely closely together in order to keep up with today’s emerging markets.
- Money management – A distributor’s supply chain is greatly influenced by retailers making on-time payments. Sadly, every distributor has occasionally experienced the annoyance and unpredictability associated with collections from kirana store merchants. Distributors may now automatically earn their collections thanks to digitization, keeping the supply chain running smoothly despite any retailer delays. Visit SwitchPe if you are a distributor and want to learn more.
These are long-standing problems that affect the entire supply chain. A different perspective that can bring about change is what is needed. With the help of computerized billing and ledger systems, an estimated 1.4 million large and medium-sized stores, out of India’s entire 13 million traditional grocery stores can experience a positive transformation, thereby also increasing the formal economy by around 250%*.
It’s time to incorporate data and technology into every facet of distribution to support and grow small businesses across India!