According to the Aberdeen Group’s report, Business Transformation in Wholesale Distribution: Why it is a critical time to invest, “in the face of today’s customer-connected digital era, top performing wholesale distributors are investing in technology at twice the rate of their peers.” What are the top technology investments leading distributors are making?
Distributors need to have full insight across all areas of their business to make the right business decisions. E-commerce, evolving prices and even competition from Amazon is forcing distributors to rethink their strategies. Omni-channel wholesale distribution is changing the landscape. Wholesalers must respond more quickly, have better insight into inventory and reduce costs to improve their margins. Technology solutions are helping wholesalers transform their businesses.
Leading companies are using workflow automation and collaboration and mobility enabling technology to create end to end solutions. Wholesalers that have not invested in integrated technology solutions face a variety of challenges such as lower productivity, shrinking margins and poor customer experiences. Workflow automation is no longer a buzzword; it is the future.
How well are leading distributors outperforming their peers?
Automated order processing and accounts payable automation are powerful and necessary tools for wholesalers who want to keep up with the competition.Automated order processing and automated AP/AR departments increase operational efficiency. Wholesale distributors using order processing automation and AP automation are outperforming their peers in ways that exponentially increase their bottom lines. Aberdeen’s study showed the following performance of the top 30% of companies
95.4% of orders delivered to customers complete and on time
94.6% of orders received from suppliers complete and on time.
Other Aberdeen studies show that leading companies using automation process invoices in under 4 days compared to the average companies which take over 20. And leading companies process invoices for a fraction of the cost. The ability to free up resources for higher level tasks creates income producing opportunities. Decreasing the processing cycle increases cash flow, allowing companies to generate a higher return on investment. How do you identify the right technology investment?
Top 10 features you need to automate order processing and your AP/AR department?
1. Intelligent Data Capture (OCR)
2. Workflow Automation
3. Exception Handling
4. Document Management
5. Business Intelligence Reporting
6. Mobile access
7. Deployment choice
8. Integration with your main business applications
9. Validation and 2/3-way matching