Distribution

Constant change - There is no time for rest in distribution. As globalization trends continue, new channels are constantly developing. Existing channels are expanding with new approaches-such as global sourcing, cross-sell capabilities, third-party logistics, and radio frequency identification (RFID) solutions.

Companies are shifting to more advanced distribution management processes as increasing competition and disintermediation concerns grow. These trends are driving changes in distributors' business relationships and processes. Traditional buy-hold-sell inventory replenishment processes are being complemented with innovative sell-source-ship methods. Distributors can maintain minimal stock, quickly source materials, and then drop ship delivery.

Customer service expectations are also expanding. Major customers and vendors are requiring specific service-level agreements and compliant technology business processes. This technology enables new revenue streams through value-added services such as Vendor Managed Inventory and
Just in Time Delivery programs. Distributors are also expected to keep up with industry standards, such as ASN (Advance Ship Notification)-with container and item level information sent electronically-incorporated with UCC128 compliance labeling. Thin margins combined with increasing business complexity result in increasing challenges for traditional distributors-especially for small- and medium-market distribution companies.

Rich integration across the distribution processes enables companies to flexibly manage information and materials while controlling costs and performance. The result is a laser-sharp focus on making good decisions throughout the entire operation and on improved customer service.

To get an overview of how Microsoft Business Solutions can help you promote efficient processes in your industry, follow the links below.

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