Effective Tools For Wholesale Management
Many wholesale businesses look good for a year or two but end up failing. Why is this? Many times it is because the wholesale management team lacks the tools it needs to be effective. Consider the consequences of poorly designed software and its effect on critical areas like open-to-sell, order management, productivity reporting, credit alerts, and discount rules:
Open-to-Sell is an important tool in wholesale. Without real-time status on unsold inventory, sales agents are unable to identify what is available immediately. Worse, simultaneous sales of the same inventory by separate agents leaves a bad taste in everyone’s mouth.
Order Management involves intricate tasks like order status, multiple ship-to locations, payment terms, and many other client-specific conditions. If orders are handled in a sloppy manner, mistakes happen. When too many mistakes happen, those clients find some other wholesaler to do business with.
Productivity Reporting empowers management by allowing an accurate evaluation of performance resulting in proper compensation. Commissions must be integrated with accounting for maximum flexibility and accuracy. Imagine the morale of a sales force that is not adequately compensated for excellence. That sales force will lower their standards and profits will fall.
Credit Alerts keep orders by clients who haven’t paid and/or probably won’t pay from being shipped until proper steps are taken. Delinquent accounts, poor credit standing, limits, and any other information should be flagged for immediate action as necessary.
Discount rules put the wholesaler in control of things like volume rebates or special discounts for a particular client. Without clear delineation of all selling cost influences the sales agent is hampered in negotiations. Flexibility is good but not when it is detrimental to the bottom line.
Tools Designed For Wholesale
Each of these areas has been addressed in ChainDrive’s Wholesale Management solution. The software is specifically designed for professional wholesalers and can be customized to a client’s specific situation. Equipping the wholesale management team effectively results in success.