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Common Challenges Facing Distributors and Wholesalers

Running a business is not an easy task to do, it takes a lot of effort, hard work, and dedication. When you are running a wholesale business, things will turn out to be harder. Along the way, while running any kind of business, many problems and challenges will be faced by you. 

You need to know how to overcome these challenges and then move forward for a successful business. However, if you get it right, there’s plenty of potential in this space so that you can get over these challenges.

A few years ago, the wholesale trade sector was worth a lot in the U.S. alone. The industry is growing, gaining success with profits, and slightly under a million effective businesses will operate as wholesalers in the coming years. 

Do not view them as just a competition. You need to consider those business opportunities for you to learn and work well, without having to make the most common mistakes and challenges that you might be facing in your business.

When the best and most powerful distribution management software such as SalesBabu Distributor Management System Software (DMSS) is implemented in your business, you will accomplish many business operations and processes very easily and in simpler ways. 

This will help you attain various benefits that will support your business to run really well without any confusion. With the best use of the top distribution and management system along with the dealer distributor management system, you will be able to stand on the top level in this competitive world. 

Hence, it is very important for every business organization to make proper use of the distributor management system so that it will help your business stand one. Hence, make the best use of the distribution management system software and the distributor management system to overcome various challenges.

Read our blog – Increase The Capability Of Distribution Management Software With Right Approach To DMS

This section will assist you to prepare and maintain some of the most common challenges within your business organization, plus a few hidden dangers down the path. 

#Streamlining Inventory Control

Successful inventory management has long been a crucial aspect of the distribution industry, yet we consistently grapple with the complications it presents, figuring out the ultimate solution.

If you’re seeking to venture into distribution and are not so determined about the concept of inventory management, let’s break it down: it’s the practice of meticulously monitoring the inflow and outflow of products and goods within your business’s storage facilities.

Such practice is not just noteworthy; it’s essential for organizations in the distribution sector. Without it, you’ll get yourself in the dark about the current status of your stock in your warehouses and the proportion of goods that have already been sold out. Such lack of clarity can result in stock shortages, frustrating both your clients and potential prospects.

Traditionally, inventory management was based on two methods: manual counting of each and every item, a labor-intensive process prone to mistakes, and RFID (Radio-Frequency Identification) tags, an expensive technology.

However, in the current landscape, software tools, involving distribution management software and dealer distribution management systems, are transforming the industry and marketing domains. Such programs provide cost-effective, prompt solutions that optimize resource utilization, dealing with the traditional inventory management obstacles.

One highlighting feature of distribution management software is its current-time tracking capabilities. It can capture pivotal information and seamlessly upload it to the cloud, providing you an overview of your inventory’s status, irrespective of your geographical location. Utilizing the potentials of artificial intelligence, advanced inventory distribution management software can even predict and evaluate when specific stock items might exhaust and calculate the requisite amount for forthcoming months to assure the seamless operation of your business.

Read our blog

#Taking Over E-Commerce

The Business to customer e-commerce trend and technology have finally hit the Business to business industry, and distributors, wholesalers, and retailers around the world are striving a lot to establish a proper and best online presence before their competitors do.

The issue here is that most of these business distributors, especially those who have been in the industry for many years, do not have even the slightest idea of how the world of online sales and business will work. 

However, a few years ago, various wholesale websites were looking like they had come straight out of the olden days, which means they made use of the traditional old methods which had many disadvantages and challenges. 

In the latest years, trends, and technologies,  the business-to-business industry is gradually catching up to digital transformation. As we can see, we are viewing the latest technologies, which are completely optimized websites that pop up every day. 

The concentration and focus have shifted entirely from having a website to using the techniques of e-commerce to attract, grab, and retain new customers and prospects. 

Definitely, when an entire business organization or industry shifts over to an entirely new trendy platform, there will be major challenges and issues at the beginning.

Hence, it is very important for every business organization and industry to make proper use of the distributor and management system so that it will support your business stand one in the competitive world. Hence, make the best use of the distribution and management system software and the distribution management system software to overcome this challenge.  

 E-commerce Takeover

Read our blog – Benefits Of All-In-One Cloud Distribution Management System

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#Demanding Customers and Prospects

One of the biggest challenges most distributors are currently facing is that customers and prospects are getting more demand as the years are passing by. 

The main reason behind this is that the minimum generation, which practically grows up in the digital transforming age, has finally reached the level where it is at demanding and commanding levels at every business around the competitive world.

Since there is a minimum generation in the industry try and as they grew up ordering and booking various products and goods online by browsing the internet on their mobiles and systems, they have become more comfortable with the latest trends to a certain level of customer and prospect services that every business-to-business company has been providing for many years.

When these customers and prospects then move to Business-to-Business sales and marketing, they will naturally expect a similar kind of customer service from every distributor. 

This is something very different and unusual to many retailers, wholesale companies, and industries, as they have never before, had to bother about trying to make customers and prospects happy using a value-added service and product the way they are in demand now.

Every business organization and industry is changing gradually and businesses will certainly make use of this new trend if they have to survive in the competition, but it is just amazing to see how an entire group of businesspeople is adapting to the latest trend and technology that has been around for almost many years.

E-commerce Takeover

#Increased Competition from the Manufacturers 

In the current times, competition is increasing tremendously in every field. There is a spike in the competitive rate of the marketing and business field. Once the business is established, you must be well prepared to face competitive manufacturers and business people. 

You must train your entire staff in such a way that you will be able to stand strong and on the top in this competitive world. Increasingly effective and efficient logistics business systems will allow the manufacturers to sell more products directly to the consumers, bypassing the business distributors. 

Additionally, the consolidation in many businesses and manufacturing parts has produced huge business manufacturers along with national distribution management systems and software tools.

#Faster Delivery Demanded by the Retailers

Many retailers have expanded their product and goods offerings, tightening the deadlines for delivery and stiffer penalties being imposed on the business distributors for late deliveries and shipments. 

Many wholesalers might be fined for providing inaccurate goods and product data or information. Various industries and companies have invested in the latest technology and upgrades with additional training provided to the employee to meet the new trends and standards which is very essential these days to run a business successfully.

#Worker Safety Concerns

While running a business organization, it is very important for you to know that the safety of your workers is very important as they are a part of your business and company. 

You must make sure that your business teams and staff are always secure and safe, especially during the current ongoing pandemic situation. There are many significant challenges associated with the storage, management, and transportation of many goods and products. 

Various companies must deploy very tight safety standards to avoid the failures of the system and manage preparedness for strong problems that might arise anytime. Hence, you must always be prepared to avoid such issues so that worker safety can be assured and products can be protected.

Read our blog – Advantages Of Using A Cloud Distribution Management System

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#Consolidation of the Supplier and Retailer 

In many business organizations and companies, various challenges and issues are being faced every day due to the strategies of distribution and many more. The wholesalers are losing the power of buying due to the increase in consolidation among the business manufacturers. 

Many regional distributors and marketing agents have become simple and easy acquisition goals and targets as they struggle to compete in the current marketing world. 

The top levels and phases are increasing their shares in the market and they are continuing to take advantage of business manufacturers and discounts for huge purchases, by giving them added leniency with the business distributors that are not able to offer similar terms and services.

#Lack of Collaboration

There are different departments under the supply chain and all should work together as a team to improve efficiency, productivity and customer satisfaction. The obstacle is to make all companies aligned on their objectives, which will let everybody know what achievement looks like, and how to win it.  

When different departments or teams are not working together, then it makes overstocking, stock outs and inaccurate inventory data. It makes it difficult to meet customer demand and can lose sales. There are several manufacturers that are having problems collaborating with their distribution companies. 

Those companies that want to enhance information sharing and collaboration among their supply networks have to combat the trust issues, efficient workflow, and introduction of new technology.

One of the major issues in organizations is that they underestimate the resources required for collaboration. Most organizations think that existing staff can handle tasks along with their regular work. Here digital tools prove invaluable in streamlining processes.

For example, a distributor managing rebate programs can leverage reward to incentivize collaboration throughout the supply chain. This approach benefits all participants by expanding market share, increasing profits, and strengthening relationships among supply chain partners. A well-coordinated platform ensures real-time data delivery, ensuring that long-term agreements remain on track and yield the expected results, ultimately allowing the distribution industry to stay competitive and thrive.


When setting up a business and trying to run it with effort and hard work, it is pretty common for challenges to arise and it is the responsibility of every business owner, staff, and member to overcome these challenges and run the business very well so that it can become very successful. 

Hence, with the help of our powerful distribution tool which is SalesBabu distribution management system software, you will be able to make your work easier and overcome the above challenges.