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Solving Inventory Control Problems in Wholesale Distribution

Naama Aharoni  |  November 24, 2022

Main key factors contributing to the challenges of inventory control

After years of evolutionary change, the wholesale distribution industry now faces significant disruption and a true inflection point. The global pandemic has resulted in widespread disruptions to supply chains, making it difficult to obtain inventory and predict customer demand.

Supply chain disruptions

The pandemic has caused widespread disruptions to supply chains, making it difficult to control inventory and predict customer demand. This is particularly challenging for businesses that rely on just-in-time inventory management.

Changing customer demand

The pandemic has also resulted in a change in customer demand. Many businesses have had to pivot their operations to meet the new demands of their customers. This can be difficult to manage from an inventory perspective, as it can be hard to predict what customers want and when they want it.

Economic uncertainty

The pandemic has also led to economic uncertainty, impacting inventory levels. Inflationary pressures and the potential for a recession could lead businesses to cut back on inventory, leading to stockouts and lost sales. Businesses may be hesitant to order too much inventory if they are unsure about future sales, but at the same time, they may not want to run out of stock if demand increases.

The war in Ukraine

The Ukraine war has brought a further wave of supply chain shocks for businesses across different industries, from those involved in producing food products to manufacturers of metals, chemicals, plastics, and glass.

In the next 3-5 years, there will be a clear divide between those companies that stay ahead of the curve (distributors of the future) and those who get left behind by stagnation. A limited number of distribution company executives understand the need for immediate action in response to these changes. Still, many lack the knowledge of critical disruptive forces and how best to take advantage of this opportunity.

Experts to guide you

Ready to get started? Contact us today and see how we can help you find the perfect inventory control system for your needs.

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