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Distribution

The challenges facing wholesale distributors are daunting. Retailers and distributors are facing unpredictable consumer spending and fierce competition. 

Wholesale distributors realize that their best action is to modernize their legacy technology to do more with fewer resources and seek emerging technologies for market differentiation. 

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Turnkey Technologies professionals have the know-how to boost profitability for Distribution companies.

Turnkey Technologies, a leading Microsoft ERP provider for 27 years, has helped hundreds of distributors power their supply chain to profitability with an end-to-end business management solution from Microsoft. 

Turnkey's deep distribution know-how and next-gen Microsoft Dynamics 365 ERP business management solutions can even the playing field. 

Industry Trends

The Wholesale Trade sector is a step in the supply chain process. Companies in the sector distribute goods from agriculture, mining, manufacturing, and information industries to downstream markets, typically without any transformation.

  • Market Size: $10tr

  • Number of Businesses: 826,803

  • Industry Employment: 6,622,568

(Cited: IbisWorld)

The 50 largest distributors in the US are generating 25% of the industry revenue.

In 2022 manufacturers are increasingly selling directly to their consumers rather than supporting the traditional distribution model. In response, distribution companies are adding more value to differentiate their offerings. 

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Gartner believes that 80% of B2B sales will be made digitally by 2025. 

33% of all buyers desire a seller-free sales experience – a preference that climbs to 44% for millennials.

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Top Industry Challenges

High volume – Wholesale distributors manage multiple transactions, many SKUs, customers, and suppliers, as well as complex pricing and rebate structures.

Predicting customer demand – Since the pandemic, the "just in time" method of predicting demand is not working as it once did. Distributors need more flexibility and ways to adjust when demand shifts. 

Shortage of workers – Distributors are suffering from critical labor shortages and struggle with rising labor costs 

Customer expectations – Customers expect smooth ordering and delivery experiences powered by modern technology that legacy business systems can't deliver.

Improve margins – Distributors must answer to shareholders and management and continuously protect their margins. Areas of focus are sourcing, chargebacks, rebates, pricing, and supply chain

Outdated Technology -  Many distributors still operate with fragmented, legacy business management systems. Modernizing ERP systems has become a priority for the sector to take advantage of emerging technologies. 

Need for analytics – Distributors need an accurate view of KPIs to manage inventory, stay on top of pricing and rebates, and spot trends. 

Benefits to expect with Turnkey Technologies by your side:

Gain visibility across the supply chain

Turnkey professionals can transform the information from your ERP into actionable insights based on facts, not guesses, to help you make informed decisions.

Keep inventory levels optimal

We'll show you best practices to keep order fulfillment flowing while reducing inventory overspending.

Get accurate costs

Our team can help you reflect landed costs in your items so that you always have the true costs and margins in real-time.

Automate replenishment

We can help you buy the right items at the right time with AI-based tools.

Better customer service

We'll help eliminate guessing when quoting shipping rates to your customers – Quote accurate rates instantly.

Benefit from Turnkey's experience

We understand the distribution industry's pain points, operational bottlenecks, and software integration potential. 

End-to-End Optimization

As you work with e-commerce, strategic customer and supplier alliances, supply chain integration, and company consolidations, we will provide solution expertise to optimize your entire operation, end-to-end.

"A customer can log on, see their open invoices, pay their bills, and do a lot of things that are very positive that you don't normally see with a company of our size. There's no paper involved at all".

~ President, Oaktree Products, Inc.