Modern Merchandise Distribution Management Tips

Find out the four main things that you should learn before you engage into any kind of pre-settlement lawsuits.

Distribution is a critical function in any economy because it links retailers and wholesalers with manufacturers. However, the challenges involved in this business are numerous. The world is changing fast and keeping up with these changes is not easy.

For example, projecting demand was easy just a few years ago, but doing so today is nearly impossible. It means that abrupt adjustments in distribution channels and methods are sometimes necessary to cope with sudden shifts in demand.

The internet and other new technologies are also changing the way distributors communicate with suppliers and customers. To survive, a distribution business has to develop means of coping with these new changes.

so isn't easy, especially when the type of merchandise distributed is also changing, but it's not impossible.

Here are a few management tips in this area of business:

Move to Automated Systems of Management

Most distribution systems are highly bureaucratic with suppliers and managers having to sign off on every single piece of cargo or activity involving that cargo. Doing so takes time and leads to a backlog of work. Automated systems of record keeping allow you to increase the pace at which you are delivering goods to clients.

Remember, modern merchandise is time sensitive, as people would like to have it immediately. Sometimes, people even book months in advance or wait in line for hours just for a chance to buy the commodity you are distributing to them.

If you disappoint them because of your manual systems, then they will surely go to another distributor who has automated his systems.

Managing Your Inventory Levels Is Critical

Improving your communication and coordination systems with suppliers isn't enough. You also have to improve your inventory management skills, which is an internal process at your company. You have to create models that will alert you when you reach critical stocks levels such as minimum or maximum.

One thing to keep in mind: none of this is going to be relevant to you if you don't have the proper warehouse equipment. Don't be cheap when buying one: it really makes a huge difference.

You should also have measures in place to react immediately to these alerts. These questions should be answered:

  • Do you have a contract with the manufacturer to supply you with additional stock before the next supply period?
  • Can you also give him stock to send to another outlet if the one in your store is not moving as quickly as you thought it would?
  • Do you have stores where you can send more stock than usual in case you find your stock is beyond your holding capacity?

Fulfill Your Orders in Time

Humans will always undertake certain processes in the distribution network.

For example, someone has to transport the goods from your store to their intended destination. If this person is slow in doing so, then even an automated distribution system will be of little use to you.

Therefore, it's critical for you to improve the rate of efficiency in your organization when it comes to fulfilling orders. Hire the best people for the job so that you don't suffer from inefficiencies in your delivery system.