Challenges in wholesale distribution: Operational challenges faced by distribution channels

Wholesale distributors can experience multiple difficulties in today's dynamic and quickly shifting marketplace, whether navigating supply chain disruptions or trying to stay competitive as manufacturers and retailers shift to a direct-to-consumer (D2C) strategy. Maintaining agility is key to overcoming these roadblocks and ensuring steady growth even as the future remains uncertain. With this in mind, here are three key challenges in wholesale distribution along with tips for addressing them.

Large retailers like Amazon have reshaped expectations for a high-quality customer experience, particularly in the business-to-business (B2B) space. For example Amazon Sellers expect expanded self-service options and real-time inventory visibility.

B2B purchasers have many of the same expectations as consumers:

• A variety of contact methods (website, mobile, in-store)
• Easy access to product information
• Online ordering
• Order tracking
• Inventory management

One way to address these challenges in wholesale distribution is through an omnichannel customer experience complete with access to detailed product information and the ability to both place and track orders online. Dedicated support offerings like managed services can ease the transition for distributors who are new to omnichannel engagement, while scalable network services can ensure reliable performance across multiple locations and connection types.

Satisfying digital experiences are crucial to retaining customers. If wholesale and distribution companies can't meet the demand, they may struggle to compete with suppliers who are selling directly to retailers.

Without a real-time view of their inventory, wholesale distributors can't be sure they'll be able to meet demand. To be fair, this has been one of the top challenges in wholesale distribution for some time, as the industry has been slow to adopt inventory management solutions that provide accurate real-time inventory.

That said, it's critical for wholesale and distribution companies to address this issue now if they aim to stay competitive. If distributors don't know how much stock remains in their warehouses, they won't be able to restock in time to meet customer demand—and this could result in a poor customer experience.

Fortunately, solutions are available to address this challenge. Inventory management software makes it easier to keep tabs on inventory from any location, even potentially predicting which items will go out of stock and when so it's possible to prepare in advance. Implementing Internet of Things sensors combined with artificial intelligence (AI) can help with demand forecasting and even automate the process of placing replenishment orders.

Of course, all of this depends on proper connectivity while items are in transit or stored in a remote location. Scalable and reliable network service makes it easier to keep inventory up to date so that distributors can be confident they're properly managing it and, ultimately, meeting their customers' expectations.

Wholesale distributors have also suffered from poor coordination for many reasons, including ineffective system integration, manual human error and spotty customer service. When one or more of these factors is at play, the customer experience inevitably suffers. If coordination consistently falls below expectations, it affects the manufacturers' and retailers' ability to honor their own obligations. In time, those crucial business relationships become frayed.

Coordination can be particularly important in relation to employees working in the field or in transit. These employees may deal directly with customers, meaning it's crucial they have access to the information they need to provide a high-quality customer experience. For example, if a customer calls to check on the status of their upcoming delivery, ideally your employee would be able to quickly call up information like scheduled events and email notifications to make sure everything is on track and give the customer an update in short order. With prompt service, that customer is more likely to be satisfied and reward the distributor with repeat business.

One way to do this is through a mobile-first business phone system that allows employees to call, collaborate and connect while on the go. Assigning one number that rings multiple compatible mobile devices, desk phones and PCs means fewer missed calls and more opportunities to connect. One Talk Side View integration can provide a quick snapshot of important details about contacts while on a call, saving employees time and improving productivity. The mobile and desktop apps display recent emails, past and upcoming meeting events, and customer relationship management (CRM) account information for a contact to help make your customer interactions more productive.

By selecting business communications technology that enables high-quality customer service instead of getting in the way of it, distributors can address these operational challenges distribution channels face. For example, an all-in-one business communications solution with internet, voice connectivity and 24X7 dedicated tech support can help mobile employees involved with wholesale and distribution collaborate more efficiently while in transit and out in the field.