Distribution Challenges & How Technology Solves Them

Automating Inventory Management

Efficient inventory management is the backbone of any successful distribution network, ensuring that all operations, from order processing to delivery, run smoothly. The key to achieving this is automation. 

In the heart of an automated system lies the continuous tracking of stock levels, where stock counts are updated in real-time as goods flow in and out of the warehouse. Maintaining an accurate record of stock levels is crucial for optimising your processes and avoiding costly errors. 

One critical aspect of automation is the automatic reordering of items that are running low in stock. This is especially vital when managing a vast inventory with potentially thousands of items across multiple locations. With each purchase or sale, the stock levels must be instantly updated to keep operations running smoothly. Failing to do so can result in orders being accepted and delivery dates promised when, in reality, it is not feasible due to poor inventory management.  

The Power of IoT in Enhancing Inventory Management and Product Traceability 

The Internet of Things (IoT) encompasses a network of interconnected devices embedded with various technologies, including sensors, software, and machine learning capabilities. These devices seamlessly exchange data with one another and IT systems through the internet. 

Optimising Inventory Management with IoT 

Equipping warehouse operatives with IoT devices connected to a central warehouse IT system provides real-time visibility into stock availability across multiple locations. This real-time insight improves lead times by accurately predicting stock levels, ensuring efficient order fulfilment, and preventing the sale of non-existent stock. 

Many wholesalers grapple with the challenge of locating misplaced items within their warehouses, leading to wasted resources and increased costs. GPS trackers can be affixed to stock or pallets, enabling quick location identification in cases of incorrect storage or stock loss.  

For distributors dealing with perishable goods, such as food distributors, managing storage conditions is critical. IoT sensors monitor temperature, time, usage dates, and other variables to ensure the integrity of products. Real-time data management reduces costs associated with poorly maintained and stored goods, reducing wastage. 

Enhancing Product Tracking and Traceability 

In some instances, you may need to track and trace specific product lines or batches for recalls or quality control. RFID tags, when coupled with IoT devices, offer precise tracking of shipping containers and batches, simplifying the management of product recalls. These RFID tags can store a wealth of data, including delivery history, product details, and quantities, providing invaluable insights 

The synergy of IoT technology and RFID tags not only streamlines inventory management but also ensures comprehensive product traceability, revolutionising the way you monitor and maintain your operations. 

Automated Demand Forecasting 

The introduction of AI and machine learning allows for trends and patterns to be identified which improves the accuracy of forecasts. Although automated, external factors can be added to the system to be considered which then alters the forecast based on real-life events going on at the time. 

Automatic reordering of items low in stock is essential in being able to effectively manage inventory across vast amounts of items in multiple locations. 

Delivery information can also be an automated process; by taking into consideration the stock availability, location of stock and the customers’ location a precise delivery date can be calculated for your customer. 

3. Rising Customer Expectations

Being customer-centric has always been the route for building successful and profitable relationships for any business in any industry, distribution being no different.   

With the rise of e-commerce and market competition, customer expectations continue to rise – particularly in the B2C market. With the ‘want it now’ culture in full swing customers have come to expect fast delivery times, an excellent customer experience, and access to services at the click of a button.  

To cope with consumer demand, businesses have had to adapt and improve their services, and whilst this is beneficial for the customer, distributors are often left with reduced profit margins in an increasingly competitive environment. However, with the right tech and expertise, you can meet both market competition and consumer expectations.  

You can shorten the time between order and delivery by automating processes within the distribution network. In doing so, a more efficient system is established, ultimately reducing error probability, and enabling you to shorten lead times and offer outstanding customer service. 

Automation can take place across sales, ordering, procurement, picking and much more, meaning you can better utilise your resources and employees elsewhere in the business.

4. Data Visibility

Having the ability to identify trends, patterns and even risks to a business through the power of data is becoming more essential than ever with the complexity of a modern supply chain.  

Many modern distributors have multiple resources and stock scattered across different regions or even countries and struggle to effectively manage this vast amount of data.   

Being able to provide complete visibility and transparency will enable you to make better, more informed decisions which reflect positively on your profitability and business processes. 

Deriving Actionable Insights from Data 

Making sense of vast data sets is a precision task that distributors must optimise. Machine learning unveils trends, patterns, and critical industry movements, helping to make informed decisions. AI and machine learning provide tailored insights to users based on their roles, reducing errors, resource waste, and costly decisions. Visual displays and graphs enhance data comprehension, boost daily productivity, and expedite insight extraction, empowering more efficient operations. 

Enhancing Decision-Making through Data 

Data insights are a crucial asset for informed decision-making in warehouse and distribution operations. They lead to resource optimisation, cost reduction, and time savings. A continuous influx of data provides deeper insights, enabling the development of effective strategies to tackle industry challenges.  

Recognising trends and patterns in data streamlines process optimisation, benefiting areas like picking, packing, inventory, planning, and customer service. These insights extend to machinery and system maintenance, identifying weaknesses, security concerns, and opportunities for automation and efficiency improvements. 

Interested to find out more?

With over 40 years of experience working with wholesalers and distributors, Syscom are specialists in ERP software for the distribution and logistics industry.

Get in touch with us today to discuss how we can help you achieve your goals by providing ERP software and support. 

Complete a contact form below, or give us a call on 01384 400 600.