WHOLESALE & DISTRIBUTION

 

WHOLESALE & DISTRIBUTION

The distribution industry in today’s world is confronted by a confluence of trends that are crunching down on its traditional means of operating.

  • Technological advancements, which in the past helped reduce costs and differentiate a supplier, have enhanced the customer’s ability to bypass distributors and deal directly with manufacturers. Highly sophisticated software that once allowed distributors to maintain a competitive edge in inventory control and activity forecasting has become a universal tool, reducing the barrier of entry to boutique competitors. 
  • Wholesalers that sell to retailers are finding that their customer base is consolidating; now they are dealing with monster-sized retailers that wield inordinate leverage on their business, causing disruption in buying and distribution patterns.
  • Social platforms are displacing traditional forms of advertising and communications, and distributors are finding that significant investments are required to keep up with the latest networking and communication requirements.
  • Distributors operating across international barriers are increasingly subject to changing rules and regulations, new tariffs that may not be able to be passed on to customers, and volatile transportation costs rising from an unstable transportation industry.

Getzler Henrich has a deep bench of experienced professionals in this industry.  Our team includes former owners and C-Level operators with hands-on knowledge.  They have successfully dealt with today’s issues including the use of techniques to reduce costs and identify inefficiencies.  The “lean” effort focuses on reducing operational throughput time by creating an efficient flow throughout the enterprise of transactional processes through operations and distribution.  Inventory management, including inventory accuracy and replenishment systems, is a critical element in reducing operating costs and cash flow needs.   Our advisers will work closely with management to expand their understanding of costs and customer profitability.

Getzler Henrich has introduced and helped implement activity-based-costing into many organizations to better understand variable overhead contribution that help defines pricing activities.