Top Ten Problems Solved by SAP Business One in Wholesale.
Problem #1: Stockouts
If you are a small or mid-sized wholesale distribution company considering an ERP investment, SAP Business One is a proven solution. It is widely recognised as a reliable and effective solution for businesses like yours.
In this blog, we highlight one of the reasons why.
The inventory problem
Wholesalers suffer from many of the same inventory problems as manufacturers (see our previous Blog on inventory inaccuracy). There are, however, a couple of things to add in the context of wholesale distribution.
Stockouts are a major problem. “Sorry! We are expecting more stock next week” encourages customers to go elsewhere. Do it too often and the reputational damage may be far more costly than the immediate loss of revenue.
The problem is compounded when an out-of-stock item forms part of a kit list. Let’s say you are a wholesaler of bakery goods. One of the items in your “Everyday Essentials” is 10 PCS of gluten free bread. If supplies of gluten free bread faulter, you may lose sales of your kit list in addition to sales of the line that is out of stock.
How SAP Business One can help
Once again, I encourage you to take a look at our previous inventory inaccuracy Blog. But there are some things to add.
Firstly, demand forecasting.
SAP Business One includes powerful modelling to improve the accuracy of forecasts. You can tailor forecasts to your business using historical data, current pipeline and statistical methods of your choosing. And these forecasts feed directly into purchasing and inventory management to streamline operations.
With SAP Business One you can be more proactive. It alerts you to potential stockouts before they become a problem. It helps you plan for different scenarios and model how changes in demand or lead times will affect stock levels.
Secondly, alerting sales staff to alternatives for out-of-stock items.
With SAP Business One, alternative or substitute items can be defined for each product. You can also prioritise alternatives by profit margin, availability, or customer preference. So, when a salesperson enters an item that is out of stock, they are automatically presented with a list of suitable alternatives. This maximises revenue and improves customer experience.
Take the next step
In the next blog in this series, we highlight problems caused by manual order processing.
To find out how SAP Business One from LAKE could help your business, download a copy of our SAP Business One Beginners Guide – Wholesale.
By Paul Barns