Trends in wholesale

E-commerce and EDI together account for one third of revenue

E-commerce continues to gain market share. In 2021–2022, 13% of total revenue was generated through e-commerce. However, for distributors with extensive product ranges, keeping an online store up to date can be labor-intensive. By integrating a webshop with ERP software, all products and prices can be managed centrally. This helps prevent pricing discrepancies and inconsistencies in product data.

In the same period, 19% of total revenue was generated through EDI (Electronic Data Interchange) sales. EDI transactions use standardized formats, typically XML, through which customers submit orders that are automatically processed by the supplier’s system. In addition to orders, delivery notes and invoices can also be exchanged via EDI.

By communicating in a common format, the processing flow between buyer and supplier becomes significantly more efficient, resulting in greater productivity and fewer errors.
(source numbers: www.vlaanderen.be/statistiek-vlaanderen/digitale-economie/omzet-via-e-commerce-bij-ondernemingen)

Dropshipping as added value

As more webshops emerge, the number of online retailers without physical locations continues to grow. Many of these businesses hold little or no inventory and rely on dropshipping, where products are shipped directly from the wholesaler to the end customer without passing through the retailer.

This model shortens delivery times but also leads to a larger number of smaller orders and shipments. Wholesalers can capitalize on this trend by offering one-time dropship delivery addresses within their order management systems.

Software that supports tiered pricing structures and automated transport cost calculations can help protect profit margins. An ERP solution designed specifically for the distribution sector, such as Microsoft Dynamics 365 Business Central in combination with Distri+, can help businesses manage these challenges effectively and avoid unexpected costs.

Faster decisions through accurate data

Of course, getting all orders to customers quickly involves more work. Incomplete product information or incorrect stock levels are all too often the cause of delayed deliveries. With the right product data (product numbers, descriptions, dimensions, color, etc.) and accurate stock levels, there aren't any surprises. A modern ERP system also offers many additional features, such as the ability to import supplier price lists. This saves a tremendous amount of time and also reduces the margin for error. Everyone within the organization has access to the same up-to-date product information they can rely on.

Transparency from beginning to end

The flow of goods provides transparency within the supply chain. There is a growing emphasis on ethical trade, sustainability, and socially responsible business practices. Wholesalers will also need to focus more and more on these areas. By digitizing all processes, the entire flow of goods can be tracked. From origin to the consumer, everything is traceable and therefore accountable. Reputational risks and legal implications are reduced and can be fully substantiated if necessary.

AI supports purchasing

To cope with rising costs, effective inventory management is crucial, but the pressure to deliver quickly remains just as intense. A realistic sales forecast offers a solution to this challenge. AI calculations of inventory turnover enable a better purchasing policy and prevent stockouts without building up risky large inventories. Purchasing based on substantiated market estimates results in safer procurement management. Monitoring trend forecasts in clear dashboards, with the right technology, you have all the tools you need to make informed decisions and respond promptly to changes in the market.

All the information you need at your fingertips, anytime, anywhere

In today’s fast-paced business environment, where everyone expects quick action or answers, a cloud-based ERP system provides access to your data from anywhere. Dynamics 365 Business Central in the cloud is scalable and easy to integrate with additional tools.

The market is highly competitive and demands more attention to keep pace with all the changes. With the right partner and a robust software system, you’ll be able to keep up with the latest trends and developments and respond to them seamlessly.