The distribution industry is a vast and dynamic sector. As this covers such a broad spectrum of delivery products and procedures, it should come as no surprise that this industry is no stranger to its fair share of challenges. With that said, let us dive deeper into the common hurdles they face. More importantly, however, is securing your operation with a quality and comprehensive MI Distributor Insurance Package.
#1: Fully understanding demand.
First and foremost, resources and operations need to be in line with demand. Working to demand projections or sales forecasts is a very poor substitute for a single, complete and up-to-date picture of demand. The single most important initiative for distributors is to provide organizations-wide access to information that lets managers and supply chain partners make fast, strategic decisions, says BCG Systems.
#2: Controlling inventory and costs.
Real time inventory data management is critical for making purchasing decisions, being responsive in sales operations, and controlling costs. With good product and inventory visibility, cash cycle and inventory turn can be properly tracked.
#3: Improving execution and coordination among suppliers and customers.
Streamlining and digitizing processes helps to save time and money. Outdated manual processes that might still be in place only slow the execution of distribution. Further, maintaining positive relationships with suppliers and being dependable is a critical hurdle for distributors to be successful. Another tip- integrate a system that can be shared by your business and the supplier for easy communication and coordination.
#4: Competing in a competitive space.
Speed, accuracy and quality service are all keys to being successful in a competitive space. Never underestimate the power of customer service and how it relates to sustained business and growth.
At Capital Insurance Group, we understand the unique risks that produce distributors and wholesalers face. We have expertly crafted a policy to safeguard all of the potential risks your industry may encounter. For more information about our products and effective risk management strategies, contact us today at (888) 296-0418.