Are outdated systems limiting your business potential? Due to the rise of eCommerce, margins in the retail industry are razor-thin, and competition is fierce.  

Today, there are more options for consumers. The changing technology and increased demand also lead to unique challenges in running a smooth supply chain. So, businesses can adapt and become efficient, without running out of monetary resources over the next few years. 

Learning about common challenges and how a warehouse management system (WMS) addresses them can help you stay ahead of competitors. Let’s look at the 4 top challenges in distribution.  

Top Distribution Challenges Lowering Your Profit Margin and How to Avoid Them 

Addressing or preventing common distribution challenges will help you remain relevant in the coming years. Here’s a look at these obstacles: 

Inventory Management  

Failure in inventory tracking affects the finances of 62% of the business. Competing in the age of eCommerce, distributors need real-time, end-to-end visibility on the supply chain and logistics. Warehouse staff must also know precisely where the stock is, its quantity, and when to reorder. 

For this, they need a backend system that accurately tracks all inventory. This almost always means a WMS.  

Using WMS with scanning, radio-frequency identification (RFID), or other tracking tools ensures visibility. It reduces situations where inventory gets lost or misplaced within the warehouse. 

Shipping Mistakes and Increasing Returns 

Everyone knows customer service is essential. However, with eCommerce, where many stores are just a click away, customer service has become a key differentiator. It makes businesses stand out from the competition. 

Getting customers’ orders right is what makes your customer happy. So, businesses must take steps to make fewer mistakes with shipping and reduce returns. 

Again, this boils down to efficient inventory and logistics. For this reason, businesses are undergoing digital transformation. Many are investing in a strong enterprise resource planning (ERP) system and warehouse management solutions to ensure that. 

Slow and Outdated Reporting 

Having the correct number of products in stock is always a challenge. If you have too much, it ties up their money. Sometimes, you might end up with products you can’t sell. But if you have too little, it could lead to missed sales.  

It’s even getting tougher now because people want their orders delivered quickly. There are more products to sell, and sales cycles often vary. This is why it’s crucial to have real-time reports and stock visibility.  

The solution is to use reporting that highlights business processes in real-time. Instead of waiting for the updated reports, distributors can see the exact number of an item with a powerful warehouse management system.  

It helps accurately predict what products are out of stock at the moment. 

Inefficient Use of Warehouse Space 

Proper use of available space is essential for warehouse workers to manage stock. They must easily track a product or pick several products to complete the order for smooth package delivery.  

If not done right, it adds to the workload and impacts the shipping process. Sometimes, warehouse owners think the issue is limited space, so they desire bigger space to keep their stock. But that’s not always true.  

A warehouse management system can help eliminate this problem. It increases visibility and transparency in warehouse processes, helping the company use its warehouse space efficiently so your staff can quickly reach these products. 

Ending Thoughts   

The success of any business selling products lies in how well it keeps the stock. While there are many challenges to properly managing stock, the solution is simple – warehouse management system. It can help you maintain a smooth supply chain and management of your products.  

Investing in a reliable warehouse management system like Quinta can also improve staff efficiency, helping deliver a better customer experience.