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TOP Challenges in Distribution Industry

Increasing globalization is driving change in the logistics & distribution through greater competition, cost pressure, and consolidation. The increasing complexity of managing global supply chains, complying with changing regulations and controlling inventory means that distributors must rely on technology as a differentiator.

The biggest challenge the distribution companies face today is – how to provide efficient and cost-effective service through increased use of innovative operational and technological solutions.

We asked our distribution clients which business issues they have to solve every day. They answered that the most attention-drawing and smart solution-requiring things are:

  • Growing product complexity.
  • Managing supply and demand effectively.
  • Significant pressure on prices and growing need to differentiate on service. A constant need to identify new, faster, lower-cost logistics solutions to maintain efficiency and customer service.
  • Current ERP systems do not meet the growing demand for data analytics, agility, and effective process management.
  • These challenges force companies to handle processes and data in a centralized, online, smart and automated manner.

Does your ERP really support your business and meet today and future requirements?​

While working with distribution companies, we recognized that some of the systems do not meet modern needs, duplicate the processes, and lag due to the overload of (sometimes irrelevant) data. Such a situation arose historically whilst striving to cover all processes and to meet changing market needs. Particularly, the main ERP system was complemented with extensions and third-party vertical solutions which made sense some 7 or 10 years ago. Today, these systems might be outdated or unsupported. Instead of helping to grow your business, they maybe reducing your business agility.

Don’t waste your time and money improving your old systems

Microsoft Dynamics 365 and its multiple apps for distribution and logistics will effectively cover and optimize all processes, improve performance and win satisfied customers. Find out why Dynamics 365 is the right solution for your distribution company >>

Author Daiva Jakštienė, CMO at GO-ERP

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