Wholesale Business - Planning Operations For Wholesale Business

The key to understanding what to plan for incan speed up order taking and eliminate errors. With
operations is to recognize that wholesalers survive bysome systems all the order taker has to do is type the
providing services to enterprises which cannot be ascallers' name or customer number into a computer to
well provided by anyone else. If you accept that fact,automatically retrieve a file noting the customer's
then you will also recognize the necessity for providingaddress, phone number, and other ordering information.
those services at the lowest cost compatible withThat saves time and reduces the number of mistakes.
excellence of service. It is the difference betweenAn on-line computer system can help eliminate one of
your purchasing costs and cost of service that keepthe most common problems of distributors, exhausting
you alive. The difference between the two is too smallthe stock of a particular item. With a computer system
to permit much inefficiency.the order-taker can tell whether the company can
In order, your two greatest costs are, of course, orderimmediately ship the item or not and, if not, when (if at
processing (including order entry) and the warehouse.all) and inform the customer accordingly. Once the
Let's look at each, beginning withe order processing.order is entered, the system can also print out
Order processing is the heart of the delivery system.order-picking documents and customer invoices.
The quality of order processing controls relationsAlthough order processing is one reason to
between the wholesaler and his or her customers; acomputerize, a wholesaler might use pressure sensitive
wholesaler who cannot respond quickly and accuratelylabels with bar codes on products on making a sale.
to customer inquiries and orders cannot respondThe wholesaler receives a batch of cards, runs them
generate or keep customer loyalty. Between inquiries,through a reader, and the computer ascertains the
order entry, order fulfillment, and invoicing, there areretailers' requirements in terms of profitable
boundless opportunities to make errors.merchandise.
Order processing is a prime area for systemsAn area of cooperation that helps both the wholesaler
development. Because they must handle a vastand retailer is retail pricing of the goods. Retailers with
amount of data in conducting their affairs, wholesalersa sound feel for current retail pricing can help lower
are "naturals" for computerization. Computer terminalswholesalers' operating expenses by creating priced
can be particularly helpful in order processing. Theylabels for volume purchases.