Wholesale

The companies involved in wholesale trade act as agents between the ones who produce goods and the ones who sell them to ultimate consumers. This situation in the world of trade causes a strong influence of wholesale trade not only on production (via the people’s demands analysis), but also on retail trade companies and, as a result, on consumption.

In other words, the main and the most important purpose of wholesale trade is the constant regulation of demand in accordance with supply. Wholesale trade companies should be interested in the great customer satisfaction through supplying them (via retail trade companies) with required amount of necessary products on a timely basis and with optimal extra charge.

While it sounds easy in theory, it is not easy in real life… There are several key problems which are usually faced by a wholesale trade company.

In purchasing:

  • Losses from sporadic sales
  • Non-optimal purchasing prices, delivery delays
  • Lack of up-to-date information on a delivery status

In sales:

  • Decrease in sales
  • Decrease in profitability
  • High stuff turnover

In warehouse management:

  • Overstocking
  • Re-grading
  • Increase in warehousing costs

In finance:

  • Increase of out-of-date debts
  • Deficit of own cash resources
  • Need to search additional financial resources

The implementing of integrated solution SAP Business All-in-One for Wholesale allows improving the effectiveness of wholesale trade via the key business processes optimization. The great value from the system implementation can be achieved in the following spheres.

Purchasing:

  • Decrease the cost of purchasing (using the best vendor search scenarios, timely debts payment, optimizing logistic expenses, timely managing of transportation and procurement expenses)

Sales:

  • Increase in sales (via improving the quality of customer service, the shortening of orders fulfillment time, individual conditions, using bonus schemes)
  • Improving the effectiveness of sales process (via the automation of debts control processes and availability check procedure, the integration of all the processes in a chain from payment to invoicing
  • Increase of auxiliary sales (via providing the information about current special offers, using various promotion and distribution channels, information about unfulfilled demand)

Warehouse management:

  • Reduction of stock (via improved accuracy of planning results, reliable information about current and future demands)
  • Reduction of non-liquid assets and slow-selling products (via the constant control of inventory holdings turnover, the timely control of re-grades and losses, the link between the sales and purchasing plans)
  • Decrease of warehousing costs (via the optimizing of using the warehouse facilities (address storage), improving the goods turnover by achieving “level of service – level of stock” balance)

Finance:

  • Reduction the out-of-date debts (via the automation of the reconciliation process between open positions and invoices, controlling credit limits during an order creation, automatic letters-reminders)
  • Reducing the time of getting necessary reports (via the integration of all the processes in one system, data consolidation tools, parallel management capabilities (e.g. IFRS))

In order to improve the goods turnover (especially in case of wide range of products), wholesale trade companies will be equipped with demonstration rooms (show-rooms or show-windows) where the samples of all existing goods will be presented. It is hard to imagine a modern wholesale trade company without a contact center that deals with different queries and complaints from consumers or potential or existing vendors, without an e-shop and often without mobile sales representatives who perform the analysis of producers in various regions.

Solution SAP SRM (Supplier Relationship Management) allows decreasing costs when working with vendors. Optimization of a vendor selection strategy, reduction of the procurement time, decreasing the number of unprofitable sporadic purchases, decreasing the costs of purchased goods via the consolidation of demands of several business units, decreasing the cost of warehousing and more attractive prices based on a competitive vendor selection system – these are the benefits of the solution.

Solution SAP CRM (Customer Relationship Management) – an important tool that allows managing a customer service at a high level. The aim of this solution is to attract and retain customers as well as to develop a client base.

Solution SAP CRM along with the SAP system for Wholesale covers the requirements of wholesales trade companies by maintaining the relationships with clients and allowing an effective evaluation, planning and implementation of a required marketing strategy.

In the context of the cost reduction program for software products, as of 2013 SAP AG offers a special package SAP 360 Customer which includes the following:

  • Solution SAP Web Channel Experience Management (WCEM) to organize an e-shop;
  • Components of SAP CRM Suite – SAP Marketing, SAP Loyalty, SAP Service & Sales, Social Media, Partner Management;
  • Solution SAP Mobile Platform which helps to provide access to the system using mobile devices (mobile clients)..

Fully operable contact center can be implemented based on SAP BCM (Business Communication Management) which is a complex platform for the communication with clients and is built using a multichannel IP-telephony technology.