There are several different types of wholesale businesses. Some wholesale businesses need to have a physical warehouse with inventory, while other wholesale businesses can purely be run through the internet without investing in stock in advance. A wholesaler can normally buy stock at discounted prices because they are making bulk purchases with large quantities. Wholesalers will then resell their purchased stock onwards at wholesale prices. These customers often include resellers, retailers, and distributors.
Why is it essential?
With the amount of stock the wholesalers buy, sell, and distribute, it’s imperative to keep on top of everything that is going in and out of a warehouse. Technology is constantly evolving and the way wholesalers are managing their businesses is changing too. With e-commerce playing a large role in ordering product, it’s necessary to have integrated systems to capitalise on this market with the right technology. Using an online order management system can facilitate many of the requirements wholesale businesses need to manage product, fulfil orders quickly, and reduce costs.
In the past, it was common to see sales representatives communicating with customers by phone and email to discuss orders and quantities for wholesale businesses. However, this process is somewhat antiquated, as it favoured big businesses that were ordering large quantities. Unfortunately, in a wholesale environment the relationships and processes for placing smaller orders were not as streamlined with sales reps. After orders were placed, the sales representatives were in charge of getting the orders underway to be fulfilled at the warehouse. The process involved a series of communication lines to get information to the right person, to execute the order fulfilment process. There were too many avenues for indirect communication and the orders had to pass through too many hands. Hence, this slowed the process down drastically. When something is slow, it can damage a business’ reputation. Customers value efficiency and products being on time. Read more about how inventory management can improve your customer satisfaction here.
Efficiency For Your Wholesale Business
In order to improve on this process, online order management software can streamline the ordering experience, decreasing the amount of different hands and communication lines used to fulfil an order. Online order management software can be integrated once you download inventory software. It will help streamline processes throughout a wholesale business. For instance, data used to get entered into systems multiple times, which is very inefficient. With online order management software, the data is entered one time and synced wherever access to this information is needed. In turn, time is saved!
If your wholesale business can download inventory software to use an online order management tool, you will see a ripple effect of benefits throughout the business. Human error will be reduced, as mistakes are not as common when information is logged through one channel and is stored in one location. This can increase accuracy and speed of order processing as well. If the orders are processed quicker, wholesale product can be sent out for delivery sooner.
Essentially, once you download inventory software, you will see benefits for managing wholesale product, customers and orders. By implementing an online order management tool, big and small orders will be processed equally and efficiency. It streamlines communication and procedures, thus making your wholesale business run smoother.