Logistics processes and channels supporting business to business distribution used to be quite different than what it takes to support business to consumer distribution. That’s all changing rapidly!
Logistics flows are changing. Shipping to or thru a traditional distribution center is decreasing while shipping direct to customer is increasing across all lines of business and sales channel.
What can you do to plan for and get ahead of this trend for your distribution business strategy? Get started with an assessment and re-engineering now. This report from the Aberdeen Group describes the convergence of B2B and B2C supply chains as a call to action for distribution business executive.
Three primary areas to look at are:
Process – Can your warehouse picking processes be adjusted to support Eaches instead of the typical B2B unit of issue – Cases? And … Can your inbound order processing handle the increased volume of orders?
System – Is your current system scalable and fast enough for the increased inventory calls and order processing?
How will you need to adjust your stocking policies and forecasts? And … Are your current inventory counts accurate enough to fulfill the promised shipments?
But most important!
Margins – Can your margins afford it? What will supporting convergence cost you?
Many warehouses operate with a very lean staff planned specifically to handle a forecasted volume of orders and picks. Your distribution business will need to assess and take new approaches to people, processes and technology to support convergence.
Assess each area and based on your market – prioritize where you need to start your re-engineering. If you’d like to get expert assistance with your assessment or re-engineering initiatives contact Socius at 800.589.6614. Your Enterprise Resource Planning system has the data needed to support this process!