One dramatic change most wholesale distributors have experienced in the past decade is the increasingly global nature of their supply chain. As the distribution segment continues to simultaneously expand geographically and consolidate competitively, you may have made acquisitions, formed partnerships or opened offices and facilities all across the globe. Your business may have used the recent economic downturn as an opportunity to embark on strategies to acquire competitors, identify new low cost suppliers and enter new geographies with more favorable competitive dynamics. And chances are that your WMS simply isn’t up to the task of juggling multiple currencies, exchange rate fluctuations and multiple languages across 24 time zones.

Wholesale Distribution software

Are you ready for the boom in Wholesale Distribution? (Part 3)

Most supply chains today consist of complex global relationships. Perhaps this is the time to look outside the four walls to address weak links within a larger supply chain, which will, when acted upon, increase the overall efficiency of your supply chain.

Better enabling suppliers, improving erp vendor performance programs or updating advanced transportation and last-mile delivery strategies are but a few examples of creating an improved, extended supply chain interfaced to WMS. Some common erp solutions that provide additional supply chain visibility include     supplier eablement, advanced transportation management – inbound/outbound and advanced “last mile” delivery management.

No single component of your supply chain operates in isolation. This is especially true for the WMS, as it is both a contributor to, and beneficiary of, improvements made to the extended supply chain affecting global collaboration, transportation and last-mile delivery. While enacting one-off point solutions for business goals may provide some improvements, you will achieve the greatest value by adopting a comprehensive, integrated strategy that optimizes the entire supply chain.

Another big change your WMS must be able to respond to is the ever more onerous regulatory climate. We are in an era of ever-increasing regulation, with requirements being set by government, industry, larger suppliers and individual customers. Compliance is not an option. For example, if detailed backward and forward lot traceability requires you to record every detail about every item that enters or leaves your warehouse, you need a system with the functionality to automate much of that process and to manage a recall with speed and precision.

Finally, you need a WMS with the technology that enables you to build powerful linkages to other systems. That means Service Oriented Architecture (SOA). When you do start looking for a replacement WMS you’ll want to be sure it’s built on SOA. SOA vastly simplifies the task of plugging and unplugging other modules without time consuming and costly armies of consultants. In a sense, it future proofs your WMS, ensuring many of the problems we’ve discussed re: outmoded, inflexible and under-performing systems are postponed many years with your new erp system. SOA also makes it easier to integrate best of breed solutions from other software vendors without having to depend on you main WMS vendor to innovate the next big idea.

Your business persevered through the toughest of the economic downturn. Now is an ideal time to scrutinize operational efficiency and best practices so that you can confidently welcome the increased orders and new business just around the corner.