The ultimate purpose of an ERP system that works as if it were made for your business is to give you peace of mind. Yes, it also provides time and money-saving efficiencies. Yes, it also provides a competitive advantage. Yes, your ERP software also streamlines your operations with workflows and eliminates manual tasks with built-in automation. Ultimately, with the right ERP in place, you can get a good night’s sleep every night.

For all of that to happen, you need an ERP solution that specifically caters to your industry.

That is why here at Strategic Systems Group (SSG), we have chosen to specialize in just a few industries versus being a Jack of all trades and a master of none. Indeed, we have spent the last 30 years developing unparalleled expertise in specific industries so that we may serve you well if you are a manufacturer and/or a wholesale distributor.

We recently blogged about two very distinct subsets that we serve in the manufacturing space, namely Healthcare Manufacturing and Aerospace and Defense Manufacturing. Today, we will tell you exactly how we serve companies’ unique needs in the Wholesale Distribution space. But first, let us take a look at the Wholesale Distribution sector in the United States.

The Wholesale Distribution Sector

The Wholesale Distribution industry represents 27.5% of U.S. Gross Domestic Product (GDP). What is Wholesale Distribution?  Wholesale Distribution refers to enterprises that buy products in bulk, store them, and then sell those products in smaller quantities to other businesses or organizations. As such, wholesale distributors play a vital role in the global supply chain.

The Wholesale Distribution industry is comprised of four significant sub-segments: healthcare, industrial, high-tech, and foodservice. Not surprisingly, COVID-19 has affected all four, some more than others, and each one is in slightly different ways. You can read a detailed analysis of how COVID-19 has impacted the Wholesale Distribution sector here.

Given the added stress on the supply chain, it is even more critical than ever for Wholesale Distributors to find ways to shore up the supply chain and streamline their operations in order to sustain profitability and a competitive edge.

Enterprise Resource Planning (ERP) for Wholesale Distribution

Why do Wholesale Distributors choose Strategic Systems Group (SSG) to support their Enterprise Resource Planning (ERP) systems?

#1-We understand that Wholesale Distribution organizations are inherently complex. We understand all of the moving parts that an ERP system must be capable of addressing, including:

  • Finance
    • A/P, A/R, G/L
    • Product costing
    • Landed cost
  • Logistics
    • Sales
    • Purchasing
  • Inventory control
    • Items purchased in bulk
    • Kitting
    • Material planning
  • Product engineering
    • Light assembly bills of material
  • Electronic Data Interchange (EDI)
  • Distribution Requirements Planning (DRP)

We make sure that all of the above moving parts are optimized.

#2-The Strategic Systems Group (SSG) team are experts in ERP for Wholesale Distribution.

We guide our clients to skillfully use timely and accurate information together with Intelligent Systems to drive improvements in five (5) critical cost and performance areas:

  1. Material shortages / substitutions
  2. Material defects and related scrap
  3. Obsolete and excess inventories
  4. On-time delivery
  5. Minimum-cost transportation and warehousing

Ultimately, our wholesale distribution clients choose us to implement and support their ERP systems because they know the job will get done on time and within budget.

#3-Our team is passionate about delivering business applications to solve business problems and find effective and efficient ways to do things.

Whether it is as simple as developing a report to identify obsolete and excess inventory, or routing shipments at minimum cost, or implementing an advanced planning and scheduling system, we enjoy working with Wholesale Distribution companies to achieve their business objectives:

  • Higher revenue
  • Lower costs
  • Efficient operations
  • Growth

#4-Strategic Systems Group’s clients benefit from our experience and skills in:

  • Understanding business models
  • Technology strategic planning
  • Business process re-engineering
  • Software development and customization
  • Implementation
  • Post-Go Live support

Let us now take a deeper dive into three (3) of the top (6) areas that are key to your success.

#1-Supply Chain Management

Complexity in Wholesale Distribution extends beyond the four walls of your company. As we have seen during the pandemic, a disruption in the supply chain of a Wholesale Distribution company can have significant far-reaching and long-term effects.

To mitigate the effects of supply chain disruptions, we help clients:

  • Leverage one fully integrated ERP system that provides timely and accurate visibility into all aspects of the supply chain
  • Accurately track product availability, landed cost, and defect rates by the supplier
  • Plan appropriate inventory levels to meet actual and forecast demand
  • Reduce inventory carrying costs

#2-Planning & Scheduling

Material planning is a key activity in a Wholesome Distribution organization. Advanced planning and scheduling is required in situations where delivery dates must be met.

In order to optimize planning and scheduling, Strategic Systems Group’s clients benefit from:

  • Effective and efficient utilization of material, equipment, and transportation routes
  • Advanced scheduling systems to plan and execute to stringent customer delivery dates
  • Balancing available inventory and delivery performance based on forecast demand
  • Clearly seeing when alternate distribution is needed to meet customer delivery deadlines

#3-Distribution Resource Planning (DRP)

Distribution Resource Planning (DRP) is vital for Wholesale Distribution companies to plan orders within their supply chain. DRP allows our clients to set inventory control parameters and calculate time-phased inventory requirements. This process is also referred to as Distribution Requirements Planning.

Toward these ends, at Strategic Systems Group, we help our clients:

  • Implement distributed resource planning to purchase, warehouse, and deliver products to customers in the most cost-effective manner
  • Develop and execute streamlined business processes to leverage the system’s distributed resource planning functionality
  • Re-engineer business processes to streamline operations
  • Reduce transportation and inventory carrying costs and working capital requirements

The next three (3) areas are Quality Assurance, Financial Management, and Operations Metrics. Click here to learn more.

 And then… take the next step

You will not find many (if any) partners who hold the depth, breadth, and longevity that Strategic Systems Group (SSG) has in the Wholesale Distribution space. Please call us at (310) 539-4645 or reach out via our contact form today!

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