Challenges facing global distribution organizations

An ERP system is an important tool for companies with global distribution to help reduce costs and manage inventory - image courtesy of Shutterstock
ERP is an important tool for companies with global distribution to help reduce costs and manage inventory - image courtesy of Shutterstock

Running a global distribution operation is a complex task and takes thousands of hours to optimize at profitable level.

But no matter how sharp your processes are, technology is continuing to change the face of the global distribution industry for the better.

This article is going to take a deeper look at some of the broader challenges that global distribution organizations face, and ultimately how enterprise resource planning (ERP) software can alleviate some of the pressure.

Global distribution competition

The Internet significantly accelerated globalization and made the entire world a more singular marketplace full of competitors to your business.

There are now businesses, from all over the world, who likely sell nearly or exactly the same products as you. With outsourced labor and lower overheads, even if the quality isn’t quite right, their lower cost can still be very appealing to customers. If you cannot find a way to compete with these businesses, you risk losing crucial revenue.

Doing more with less, while improving quality and reliability, is exactly the motivation behind most technological advances. Finding an automated process with precise operations will save you time, money and allow you to compete with foreign entities.

Control Over Inventory

Managing the inventory of a store of any size is a large and often complicated task. It gets exponentially more complex when you factor in the entire stock of a global organization.

The procurement process is also not an easy thing to manage – there are many moving pieces that all need to be carefully watched. With parts to be sourced from many assembly centers and manufacturing companies, along with reliable backups in case of emergency situations, it becomes an operation that is nearly impossible to manage without the assistance of an ERP distribution software service.

This kind of automation allows for you to witness the entire breadth of your pipeline, from procurement to cash in hand, from the convenience of your device.

Unbalanced business growth

Even as the economy has recovered from the global financial crisis of 2008/09, you may have found yourself taking on more business. However, this doesn’t necessarily mean that you have adequate funding to take on new staff, which means larger workloads for your existing employees.

If you don’t have the assistance of warehouse technology, you have little choice but to hire more staff to take on the extra work, even if your payroll budget isn’t quite there yet.

ERP software not only helps maintain an efficient employee roster, but also reduces the overall workload of your staff and provides an increase in workplace satisfaction.

There are many reasons for taking the time to properly implement an ERP program for your organization, and whatever yours may be, you’ll find a smooth, seamless and streamlined experience keeping the clutter out of your pipeline.

As your business grows, your procurement process will along with it, changing hands with more people and entities, thus leaving a bigger disparity for error. The cushion provided through the assistance of an ERP can help safeguard your business from the chaos that so often ensues with growth, carrying you through to a time when you can securely take on more employees in the most efficient way possible.