52% Wholesale Distributors Moving to Cloud ERP. Are You?

52% Wholesale Distributors Moving to Cloud ERP. Are You?

Legacy, detached and out-dated solutions used by Australian wholesale distributors create a barrier to innovation and growth. These types of software increase IT costs and reduce business efficiency. A fully integrated Enterprise Resource Planning (ERP) software offers a complete solution to support wholesalers and distributors to lead, pioneer and differentiate in a newly disrupted industry.

The Wholesale and Distribution market is shrinking.

Inside FMCG magazine in the article: “What is driving wholesale bypass?” talks about the new challenge for wholesalers: e-commerce is reshaping the entire economy rapidly. We are seeing an end to wholesale as it is now. Wholesalers and distributors, who act as “middleman” between manufacturers and retailers, have suffered a weighty decline in revenue. Every day more businesses abandon distributors to use direct e-commerce solutions.

In 2017-18, Australia grocery wholesale revenue is likely to contract 0.6 per cent. Footwear wholesaling profitability has dropped over the past five years and is expected to reduce by a further 3.2 per cent. Online clothing stores weakened the demand in traditional channels, reducing retailer’s need for wholesalers. Their revenue is expected to fall by 1.0 per cent. Toy and sporting goods wholesalers shared the same difficult conditions and expect a 1.4 per cent decline in revenue.

What are leaders in the wholesale and distribution industry doing?

Kara Kennedy, in a blog for G2Crowd titled: “The State of B2B Australia Tech in 2017” wrote that Australia ranks No. 5 on the GEDI’s “Global Entrepreneurship Index.” She explains this high ranking shows that Australian display entrepreneurial attitudes towards technology adoption. This culture is supported by the Australian government’s digital agenda which encourages non-tech companies to pioneer and embrace evolving technologies. There is a big focus on digital innovation. The government aggressively pushes initiatives to include pathways for doing business with modernising technology.

Traditional wholesale distributors, who might be struggling in the Australian market, are called to invest in business management technologies. Pioneers are experiencing much more success in this tight market. In MDM’s survey: “The Outlook for Wholesale Distribution in 2017”, 52.4% of Australian wholesale distribution companies surveyed stated that they were already in the process of upgrading their systems. A further 20.3% was updating by the end of the year 2018.

%

Currently Upgrading Their Systems

%

Will be upgrading by the end of 2018

52% of wholesale distribution businesses are migrating to fully integrated and centralised ERP software solutions. Wholesale distributors in Australia search for specialised software vendors to develop cloud-based software, rather than several disjointed systems.

ERP systems broadly let them manage everything from financials and accounting to warehouse management, supply chain, inventory and demand planning to sales and marketing. Having all their business processes in one place, accessible everywhere in real time allows them to focus on their differentiation strategies and planning.

“There is a real need for wholesale distributors to invest in pioneering management systems. Businesses must address this as a priority. The future is becoming ever more digital. If you aren’t on board, you’ll be left behind. Having a digital platform is not a differentiator anymore, it is the standard. Efficiency and centralisation in a good ERP system, are now the keys to get that customer service differentiator.” says Michael Dean, Business Consultant at Klugo.

Richard Kloé, Managing Director at Headland Machinery, explains: “using NetSuite cloud technology gave us a competitive edge to lead in an incredibly tough market. Wholesale distributors must adapt to the fast and disrupting changes in the industry. Only state-of-the-art wholesale distribution software will give them freedom and ease across multiple channels. Technology like this can make a difference to drive success in a global economy.”

NETSUITE FOR WHOLESALE DISTRIBUTORS

Learn more about NetSuite leading technologies for Wholesale Distributors with our complete guide: “Transform Your Distribution Business with Software Built for the Cloud.”

Benefits of Cloud-Based ERP Software Solutions

Carrying out manual sales processes, financial management and administrative tasks can take hours. With a cloud-based system, time-consuming tasks such as submitting sales orders from the field to the back office can be automated and finished in under an hour. Making these processes faster allows employees and managers to have more time to focus on the real business differentiator: customer relationships and building a strong customer experience. According to Accenture’s “Digital Disconnect in Customer Engagement” survey: 81% Australian consumers admit that it is ‘frustrating’ or ‘extremely frustrating’ dealing with a company that does not make it easy to do business with them. 55% have switched providers due to poor customer service.

Cloud-based business platforms are changing the future of Australian businesses. We operate in a global economy – we can sell to anyone anywhere. We need to make the most of our smart inventory management software to help us lead the way in our region.” says Annaliese Kloé, CEO of Klugo and Managing Director of Headland Machinery.

Oracle NetSuite, in 2018, introduced to Australia their latest edition called: “SuiteSuccess” for wholesale distributors. This, out of the box software, puts together the leading practices of thousands of wholesale distributors around the globe. This knowledge base allows a fast implementation, saving time and money for distributors. The billable time spent explaining how to run their business, their accounting and inventory strategies disappears. It is quickly becoming the most affordable wholesale IT solution.

B2B customers act like consumers today: they prefer self-service tools with instant access to product information through their mobile devices. Business Procurement Managers are focussing on developing easy to use e-commerce websites. These managers search for fast or free shipping and immediate product availability. NetSuite is the Wholesale ERP that helps the leading Australian wholesalers to plan a perfect B2B omni-channel commerce customer journey. The platform helps to automate and deliver a consistent shopping experience with purchase orders that ship within a day or two. Businesses can provide sales that are accurate, complete, damage-free, easily returned, and competitively priced.

Running a successful small and medium-sized wholesale distribution business in Australia requires keeping pace with changes in technology, economy, workforce demographics, customer needs, pricing models, and more. These challenges often put distributors at a disadvantage to national or international operations. NetSuite’s SuiteSuccess fast implementation allows Australian business to maximise their investment. With NetSuite, they can see a quick return. With this technology wholesalers are leading within their industry quicker than ever before.

Need a specialist’s free advice?

Feel free to call an expert in Wholesale Enterprise Resource Planning System today. Find out how cloud-based technology can grow your wholesale and distribution business.

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Solar Boom Drives The Need For New Technology

Solar Boom Drives The Need For New Technology

Aussie Solar Energy Boom Predicted for 2018

We’re in the midst of a solar energy boom. Analysts say that a record number of solar panels were installed in Australia in 2017 – a total of 9,500 panels installed across the country daily. The sunshine state is fast becoming the “solar state”, with Queensland home to the largest number of residents with solar panels installed in their homes. This trend is expected to continue rising, with residential rooftop solar installations on the up this year. More than 100MW of registrations were recorded in January 2018, delivering the best start to a year ever, according to Renew Economy.

Three Benefits of Solar:

  • Save money on power bills.
  • Increase property value.
  • Reduce carbon footprint.

Why Does The Boom Drive Need For Solar ERP?

IBISWorld reports that the demand for solar is increasing inline with Australia’s growing population. Demand for industry services tends to be greater in areas with larger populations, so it’s not surprising that between Australia’s three largest states – New South Wales, Victoria and Queensland, they account for just above 70%  of total installed solar capacity in 2017-18. The solar industry is expanding rapidly, but it faces both business and technology challenges. The nature of the industry is complex; solar installation companies require a broad range of features to be able to manage their entire business processes in one system, in addition to the mobile nature of their workforce. This brings the need for seamless access to systems, whether it’s in the office or out in the field. NetSuite provides solar installation companies with an outstanding solution as it covers every aspect of the business, from sales and marketing, financials and accounting, to job costing, manufacturing and field service.

Equipment Services and Repairs

NextService ensures that equipment service and repairs businesses can run their core business operations with increased efficiency. This field service management system helps you automate and streamline previous manual or labour intensive processes within service administration.

Get in Touch

If you’d like a bit more information, get in touch to speak with one of our experts.

Challenges Faced by Medical Device Distributors and How to Overcome Them

Challenges Faced by Medical Device Distributors and How to Overcome Them

With the medical device distribution industry expected to grow 20.1% by 2020, we reveal some of the biggest medical device industry challenges and how a cloud-based, one system solution can overcome these problems.

Challenge One: Tracking Medical Devices 

The growing number of medical devices with millions of product variations presents a challenge for the healthcare supply chain. With 6+ million medical devices on the market, information about these devices is often difficult to manage. Maintaining a medical device item master list often requires manual entry, leading to high risk of error, inconsistency, and incomplete data.   Solution: The goal is to use an automated platform to identify, source, manage, document, track, and bill for device options.

Challenge Two: Excessive Waste 

It’s been recorded that around $5 billion annually is wasted due to expired or lost medical devices – 45% of healthcare spending is assigned to supply chain. Solution: Reduce waste management and enable intelligent, informed purchasing decisions by gaining visibility of stock across all channels in real-time, including showrooms and warehouses, and track transfers between locations. 

Challenge Three: Incomplete Records of Medical Devices

Many businesses rely on manual data entry to record information, which is a high risk strategy that can not only lead to incomplete records, but more challenges further down the line with reporting and billing. Product expirations and recalls need to be tracked in an efficient and timely manner, from inventory to clinical use and follow up. Solution: You need the correct information at your fingertips to notify clinicians and supply chain personnel for the next steps in the process. 

Challenge Four: Lack of Information and Data to Make Smart Purchases

Disparate data creates inefficient business processes and makes it difficult to make informed decisions. Many medical device distributors find that their information lacks structure, is incomplete, and often unavailable when needed. Solution: Real-time reporting from one single source to drive business processes, support smart decision making, and harness the power of data like never before.

The Cost of Doing Nothing in Wholesale Distribution

The Cost of Doing Nothing in Wholesale Distribution

“Making Do” – ERP for Wholesale Distribution

A white paper recently released by Mint Jutras states that less than 60% of wholesale distributors are using systems to fully support critical business processes. Distributors today appear to be “making do” with disparate systems, rather than using software such as Enterprise Resource Planning to comprehensively manage the entire business. As few as 35% of distributors use fundamental systems like warehouse management, while 43% do not use a procurement system – and only 23% say they have a solid accounting system in place. To support business growth, ERP for wholesale distribution is important. Distributors today face increasing global competition along with growing complexity of supply chains and trade regulations – with several operating using incomplete systems to support business growth and development. ERP is defined by Mint Jutras as ‘an integrated suite of modules that forms the operational and transactional system of your business.’

The Cost of Doing Nothing

It’s common among businesses to put off an analysis of systems and processes, in favour of “making do” with current systems. This can be detrimental to a company, with this costing businesses more in the long run. If you are using old, outdated technology that lacks the specialised functionality required for global distribution, or you can’t easily respond to changing business requirements, it could be time to analyse your current systems and processes. One of the main ways that a business can overcome these issues is by reviewing existing technology systems.

Review of Existing Systems

The best way to find out is to begin with analysing your current systems to find out how to maximise your employee productivity and streamline business logistics. We are offering a free review of your systems and processes, which involves:

  • A two hour consultation on premise or remotely.
  • Review of your existing systems, processes and documentation.
  • Using our 10-point audit checklist to identify areas of risk and opportunity.
  • A detailed report with recommendations to navigate cloud technology.

Fill out this form to book your free technology review. [activecampaign form=40]   Download the full white paper below.

Employee Productivity is Critical for Distributors – Download Your Free White Paper

Employee Productivity is Critical for Distributors – Download Your Free White Paper

Employee Productivity is Critical to Success’ is a new white paper released by Oracle + NetSuite. Delving in to the technologies that increase efficiency in distribution operations, this white paper also explores how and why distributors are implementing new technology in order to adapt to their changing buyer habits, employ a more tech-savvy workforce and ensure that processes are seamless throughout the company. What are the benefits of employee productivity solutions?

  1. Sales Force Automation.  SFA uses software to automate the business end of sales which includes order processing, contact management, information sharing, inventory monitoring and control, order tracking and sales forecasting.
  2. Customer Relationship Management. Manage customer experience with effective marketing campaigns and after-sales support. Ensure you build strong customer relationships with a powerful CRM tool.
  3. Enterprise Resource Planning. ERP is a business software that uses a system of integrated applications to manage a business and its many back-office functions, including CRM, inventory management, accounting, human resources and more, as one complete system.
  4. Warehouse Management System. A WMS is a software application that supports the day-to-day operations within your distribution business, providing centralised management of tasks such as tracking inventory levels and stock locations.
  5. Analytics. Business analytics track customer information and their investment level in your company, so distributors can not only follow customer buying behaviours but also predict their future purchases.

Read more about NetSuite. Download your free white paper today.

Warehouse Software Helps Distributors Solve Top 5 Industry Challenges

Warehouse Software Helps Distributors Solve Top 5 Industry Challenges

Warehouse software and technology helps solve key challenges within the warehouse distribution industry.

Challenge 1:  Warehouse Stock Inventory 

Distributors know the key challenges around stock inventory are mainly, location of stock, storage of stock, security issues and lost stock. These are continual challenges warehouses face when optimised warehouse systems or have software is in place.

Solution 1: Educate yourself on Warehouse Software

So you might have heard about Industry 4.0 but if you’re not all over it? Attend seminars (Klugo is running one next week, email the marketing team to find out more) and download information such as our Industry 4.0 Cheat Sheet. Once you’re educated about the options, the benefits of the cloud and distribution software, automation and investment required, you’ll know the best way forward for your company.

Challenge 2: Warehouse Layout Optimisation 

Ensuring the layout is the most efficient for accessing and getting goods out the door. Of course, ensuring best sellers  are  most accessible, however, companies really need to think about investing in vertical storage solutions that automatically and safely retrieve goods with pick to light functions and if they are vertical you’ll also save on valuable floor space. The cost of these machines can pay for themselves within the first year. Even if you only consider the savings from lost stock and time spent stocktaking, from then on, it’s all profit for the business!

Solution 2: Research Automated Storage Solutions

Such as Hanel, that integrate with your warehouse software platform. Do your sums (request a ROI estimate) and you’d be surprised at how quickly you’ll see a return on your investment.

Challenge 3: Global Competition 

If you’re selling into the Australian market, competitive pricing is key. Every aspect of the business needs to be streamlined, especially within the warehouse and logistics department, you need to be able to compete with imports or else you are out of business before you even start.

“Many of our customers are managing  supply chains over multiple currencies, locations and timezones. This has been iIn the past, this has been a real challenge and can take many resources and time to co-ordinate. Moving to one warehouse system that can manage it all, is a real game changer”, says Annaliese Kloe, CEO, Klugo.

Solution 3: Research Cloud-Based Warehouse System

Search for a cloud-based warehouse system that can manage multiple currencies, locations and timezones and find an implementation partner that has the experience in your industry so they know what your key challenges are and how to fix them.

Challenge 4:  Peaks and Troughs in Warehouse Sales 

All industries have cyclical growth, if your warehouse is not optimised to deal with this, you may find you have to put on more people rather than using technology to scale up and down.

Solution 4: Research Best Ways to Optimise with Warehouse Software and Technology

what technology you need to optimise your warehouse, talk to colleagues and join LinkedIn forums to see what would benefit your business. Always think about the best time to implement new systems, allowing time to test and refine processes in your more quiet periods.

Challenge 5: Warehouse Supplier Relationships

Managing these efficiently to ensure goods are received on time, to know when goods are out of stock and when stock will be available is all essential to running a successful warehouse business.

“We all know this, but few of us know how to deal with this well, quite often we see what  people are constantly chasing their tails to ensure they receive goods on time to meet customer demand, or else they lose the sale. There is too much competition out there to fail to deliver goods in the time that customers expect” Annaliese Kloe, CEO, Klugo.

Solution 5: Define your Ideal Scenario

Speak with your suppliers and work with them, what systems do they have in place to deal with these sort of challenges and how can your systems work together? Research cloud-based platforms that are growing in world-wide adoption to ensure there are no issues with integration and there are experienced companies out there that can implement and help drive your business forward. Download the NetSuite Advanced Warehouse Brochure or visit our Equipment Distribution page. To speak to an Warehouse Software expert, call Klugo on 1300 766 011 or email [email protected]