Wholesale businesses are full of hidden costs. By integrating a wholesale solution, unwanted costs are identifiable and you can see where savings can be made.

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How much is
poor financial
management
really costing
your wholesale
business?
If you don’t have effective financial
management, your wholesale
business could be facing negative
consequences on its bottom line.

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With margins under pressure from
rising costs, wholesalers can not
afford inefficiencies and delays
that have a detrimental impact on
the bottom line. This is likely to be
the effect for wholesalers still using
outdated IT systems and time-
consuming manual processes.

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The importance
of using an
integrated system

4. Nevertheless, getting to the
bottom of where inefficiencies
lie in the business is not always
straightforward. The lack of an
integrated IT system for financial
management throughout the
business is usually the cause —
also gets in the way of identifying
the scale of the issue.
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5. Many wholesalers are making
decisions based on multiple sets
of inaccurate data siloed in one
area of the business or another.
Since they do not have an
overview of the whole business,
pinpointing the most damaging
issues can be difficult.
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In fact, these inefficiencies may
occur in every part of the wholesale
business, requiring managers
to think broadly about what the
potential costs might be. Examples
of poor financial management
costing a wholesale business
money include:

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1. A lack of
necessary
controls to
protect cash
flow and credit

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Once the sales team completes
an order, is an alert automatically
generated for the credit control
team so they can make a decision
about whether to release the order
for picking if a customer is in arrears
or on stop?

9. For wholesalers still using legacy
systems, manual processes and
spreadsheets, the likely answer
is no. An integrated system can
automate a workflow from sales
to credit control to give staff the
information they need, allowing
them to respond proactively
rather than reactively.
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2. A lack of
visibility across
multiple sites

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Many wholesalers operate
from multiple depots but don’t
necessarily have visibility of
what stock they hold and where.
Securing a central view of stock,
as well as a means to manage its
movement between depots, will
save time and money, as well as
enabling better customer service.

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This visibility will become more
important as the business grows. A
lack of a warehouse management
system could mean that one of
the warehouses does not have
processes in place to manage
discrepancies in the supply chain.

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3. A lack of
automation for
imported goods

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Where wholesalers are having to
manually issue documentation to
shipping offices so that imported
goods can be accepted, there
is huge scope for delay. Human
error can very quickly cause the
fulfilment process to grind to a
halt, with significant expense and
customer dissatisfaction as a result.

15. With an automated system, your
business can issue documents,
on time, to the shipping offices so
imported goods aren’t held and no
further costs are incurred. If there
was no automated system, a member
of staff would need to diarise the
information and timings. This wastes
time and resource that could be better
invested elsewhere in the business.
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Effective financial
management
puts you ahead of
your competitors

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Leading wholesalers are eliminating inefficiency and poor
financial management — through the use of integrated IT
solutions. Such systems enable wholesalers to manage their
businesses holistically, with a complete view of what is going
in real-time.

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Leading wholesalers — those performing most strongly
on metrics such as profitability — are consistently
more likely to be embracing IT solutions.
55% 63% 63%
of wholesalers say they
have the ability to carry
out forecasting
have automated
notifications based on
business events
believe they are achieving
real-time collaboration
across operations
Statistics from Aberdeen Group

19. Strong financial management is essential
for profitability. Discover where you could
make business wins by downloading:
The Profitability Rulebook:
Maximise profitability
by eliminating common
wholesale errors
Find out more now
THE PROFITABILITY RULE BOOK:
MAXIMISE PROFITABILITY
BY ELIMINATING COMMON
WHOLESALE RISKS
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There’s no room for error in the
wholesale industry — you need to
protect your margins.
RULE 3
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