The Distribution Industry

Wholesale distributors occupy a middle position in the supply chain manufacturer and the retailer or end-user, holding and delivering a range of goods, and often services, for resale purposes. This middle position gives the distributor a unique role in the supply chain of goods from creation to usage. But this position also brings its own challenges. The distributor is forced to cope with the pressures and demands of both suppliers and customers.

Vendors want to sell at the best possible conditions (for them), customers want to buy at best possible conditions (for them), and in the center is the wholesale distributor which has to accommodate these competing pressures while also trying to meet its own revenue expectations.

While a distributor does not manufacture, they represent a very wide range of products. Because of this, it is very important for them to a have a finger on the pulse of product sales, what types of products are bought together, substitutable choices, and so on. This information can be used for negotiating prices with a vendor.

Distributors typically handle a large product mix at very high volumes. Anticipating demand is critical, especially for seasonal non-durable items or frequently purchased items. This is the balancing act of minimizing inventory levels to reduce costs while also maintaining a high level of customer service and satisfaction. The product mix patterns are critical for optimizing the inventory mix for the most efficient use of capital. Product substitutions are also very useful in optimizing inventory and minimizing lost sales due to stockouts.

How Emcien can help you:

A distributor’s business is based on knowing their customer’s purchasing habits and buying patterns. Emcien pattern-based analytics applications automate this process and also identify the product substitutions, eliminating the guesswork. This enables the wholesale distributor to better understand and respond to the dynamics in their market.

Emcien’s pattern-based analytics applications: