Every business owner wants to be successful, that’s perfectly normal and expected. However, there are a lot of things to consider when building a successful business, especially if you are running a wholesale distribution one. There is a lot of organizing, planning, hiring, etc, and no matter what type of products you sell, you still have to think about all this. So, if you have a distribution business, here are some tips to help you run a successful distribution business
Focus on Customer Service
The market of the distribution businesses is incredibly competitive. Many try to stand out from the crowd by changing their prices hoping to get more sales. However, this is not an effective approach or strategy to have long-term growth. Instead of lowering or increasing your prices, you should focus on providing amazing customer service.
Think about how you can create a convenient and modern experience for your customers. Make sure to even have a live chat on your page, so customers can easily contact you for any questions or issues. Also, consider how you can fulfil orders quickly and how you can boost the customer experience overall. Investing in customer service and experience is a long-term strategy that can bring you profit.
Manually filling out papers, orders, and every other document is archaic and people are slowly moving away from it. No business, especially a distribution one, shouldn’t be afraid of automating their business. You can save a lot of time and money if you rely on automation and it is simply the future. There are still distributors who rely on old-school methods, but there is always time and room for improvement.
If you already have a business and don’t know how to bring technology into it, you can easily find people who can help you set everything up. The value of mobile devices and computers is practically immeasurable when it comes to distributors, and if you implement the technology you will manage to keep up with the competition and increase your profits.
Be Smart When Hiring
It is obvious that you won’t hire just anyone, but you should remember that your hiring policies can affect your business’s success. The staff will be in charge of planning day-to-day productivity, efficiency, quality of products, customer service, and everything else. That is why you have to make sure your hiring process reflects your goals and be careful when profiling people.
If you pay attention to people’s experience and expertise, as well as their motivation and loyalty, there would be no problems when you hire them. For example, if you look at the company for baking supplies, you will see that their staff is made of qualified people who have years of experience in the field. That is why they manage to take care of their inventory properly, communicate with customers, and deliver everything on time, even though they deliver to a lot of countries. The key is hiring people who have good organizational skills and knowledge and experience in the field.
It is simply impossible to run a successful distribution business if you can’t control your inventory. Some companies like keeping their stock levels at the minimum and replenishing them once the levels are low. On the other hand, others like having safety stock on some products in case they spike in demand, while some businesses use a “just in time” inventory strategy, where they deliver the items just in time for manufacturing or shipment.
Whatever method you want to use, you have to keep track of your inventory. Incoming, outgoing no matter where it is at, you have to always know the levels of stock available. Also, make sure to do regular physical inventory counts and coordinate the levels with fluctuation in demand.
Take Care of Your Cash Flow
For any distribution business cash flow is the lifeblood. Many businesses make the mistake of getting an overextension of credit to their customers and that’s when they struggle with finances. You should avoid folding to demands for extended payments and be diligent. You can accept credit cards and invoices paid online, but make sure to make cash a priority. Also, you have to always be aware of your financial status. Produce flash reports often and make sure to include cash availability often.
Having a successful distribution business is a dream come true. However, just like with any other business, you have to make sure everything is running smoothly. Thus, focus on great customer service, keep track of your inventory and cash, and do your best to stay out from the crowd with such qualities. And if you follow these tips to run your distribution business, you are bound to have a successful distribution business in no time.