Ok, so the economy is bad and the distribution market is hurting. What are you supposed to do? Most distributors are just trying to hold onto the customers they have. Few are even thinking about ways to increase revenue.
But it can be done! A Distributor we know has actually increased their revenues by 30% in the last year. How did they do it? It wasn’t because of a new product or higher quality. And it wasn’t from cutting prices or winning a customer from a competitor. They simply began offering a new value-added service that their current customers needed.
The service is Vendor Managed Inventory, or VMI. This Distributor began taking full responsibility for the management of inventory and replenishment levels for their customers using an add-on solution to their existing ERP system, Microsoft Dynamics NAV (Navision). The customers were able to devote valuable resources elsewhere while their supplier (our Distributor) ensured the consistent supply of critical components. Since it went so smoothly, the customer began sending more orders to the Distributor providing VMI, and fewer orders to the other distributors without VMI.
The VMI solution manages replenishment levels, customer consumption, and replacement orders and provides the necessary analytics. You can easily start differentiating yourself with your best customers using this add-on to Microsoft Dynamics NAV.
Contact us at Silverware to learn more about the VMI capabilities available with Microsoft Dynamics NAV.
By David Thikoll with Silverware, a Southwest Dynamics NAV partner
No related posts.
