NetSuite ERP for Wholesale Distribution: Optimizing Your Operations

Wholesale is an industry in and of itself. Every major brand buys and sells via wholesale. Outside of who’s who and who buys what and who sells what, wholesale is an industry where efficiency, accuracy, and responsiveness directly impact profitability, having the right technologies in order to manage your operations should be top of mind. NetSuite ERP for wholesale distribution gives wholesale managers the tools and insights needed to succeed in their line of operations, reduce costs, and improve customer satisfaction. Today, we’ll talk through how NetSuite’s ERP solution is helping wholesalers optimize every step in their distribution process and why it can be a game-changer for your company too. 

Why NetSuite? 

Ah, an age old question here at Devma. 

Wholesale distributors face unique challenges, some of which no other business professional faces such as managing larger than normal inventories, meeting fluctuating customer demands (especially around holidays), and making sure each order is fulfilled seamlessly. Most people opt for traditional methods or random standalone softwares, but they usually lack integrated functionalities that are crucial for addressing these challenges. Wholesale distribution software like NetSuite ERP offers an all-in-one solution, bringing inventory, financials, order management, and demand forecasting under a single platform.

While we’re experts in the field, what if you heard it straight from the horse’s mouth? Maybe you’d be more inclined to take the next step in managing your wholesale operations. Oracle published research which shows companies using ERP for wholesale distribution experienced a 20% reduction in operational costs. There’s a good chance this can be tied to improved inventory management, streamlined fulfillment, and automations with your order management processes. 

Inventory Management is Better with Accuracy

Imagine you’re trying to get all of your inventory under control and you don’t even know what or what you don’t have. That’s the reality for some wholesale distributors, but it doesn’t have to be for you. We all know that inventory is the backbone of any distributor, and maintaining optimal stock level is the name of the game. NetSuite ERP wholesale distribution software gives real-time inventory management tracking and it helps distributors avoid overstocks or stockouts – both of which are costly. 

According to Wasp Barcode Technologies, 43% of small- and medium-sized businesses admitted that they didn’t track inventory or used manual methods, leading to discrepancies and inaccuracies. That means that they had one or a few individuals going around scanning SKEW codes to find out what they had or didn’t have. One person can only work so many hours, so imagine the time it took and what mistakes may have happened along the way. 

With NetSuite, you can manage inventory effectively and cut out all the human errors and guesswork. 

Order Management and Fulfillment are Streamlined

Who doesn’t love a quick order fulfillment system? We know consumers do. When it comes to wholesale distribution, an order management system that’s efficient is key. NetSuite ERP automates a lot of the repetitive tasks within an order process such as order creation, fulfillment, and even invoicing, ensuring a smooth, timely delivery. There’s also an opportunity to go futuristic and implement workflows for drop shipments, bulk shipments, and even direct-to-consumer deliveries. This reduces the need for manual data entry which allows your team to focus on more critical tasks at hand. 

Aberdeen Group reported that companies using ERP software in distribution saw a 96% improvement in order fulfillment accuracy, resulting in greater customer satisfaction and lower return rates. Happy wife, happy life. Happy customer, the longer your business stays in business – doesn’t rhyme, but you get the gist. 

Plan for Increased or Decreased Demand

We mention this because the holidays are right around the corner. When else do people buy whole turkeys? Never, but come Thanksgiving, there’s a slew of buyers lining up for them. This is a good example of increased demand. It doesn’t have to be an increase, but demand fluctuations come and go – they’re unpredictable to say the least, and inadequate demand planning can lead to costly excess or lack thereof. NetSuite provides demand planning tools which take advantage of previous sales history and data to customize forecasts. This is someone’s best friend if they’re aiming to optimize distribution operations. 

According to research from Deloitte, distributors with demand planning and forecasting tools saw a 15% reduction in carrying costs due to more accurate predictions and better alignment of inventory with demand patterns. 

NetSuite enables distributors to forecast accurately, ensuring they’re well-prepared for peak seasons or shifts in customer preferences.

Your Financial Management will Thank You

What’s a NetSuite blog without the mention of “finance” or “revenue”? That’s right, a boring one! Alongside inventory and order management, NetSuite ERP also offers financial tools specifically meant to help wholesale distributors. Many financial processes can become automated such as invoicing, accounts payable, accounts receivable, and tax compliance. When you centralize financial data, NetSuite reduces errors, shortens reporting time, and makes sure all of your financial records or models are up to date. 

Given the fact you’ll have a new set of eyes on the financial side of the business, you can make better decisions, optimize your cash flow, and reduce operating expenses. 

Takeaways

In an industry where efficiency and customer satisfaction make the revenue wheel go around, NetSuite ERP wholesale distribution gives wholesalers the tools they need to stay atop the competitive market. From real-time inventory management and automated order processing to demand forecasting and financial management, it’s all there at the tip of your fingers. 

Keep in mind that the data favors you and your adoption to these tools: ERP solutions like NetSuite can lead to significant improvements in order accuracy, inventory control, and cost reduction – making it a strategic choice for distributors seeking long-term success.