How Do The Best-in-class Companies Do It?

May 23, 2016


Visibility is one of the major keys to a successful software system for a distribution business. It can mean the difference between a costly inventory mistake that results in a lost customer and a profitable, positive customer experience. Along with preventing distribution delays, any product-driven company knows that maintaining just the right amount of inventory takes a lot of effort. Inventory management is another major key to success, and with the complexity of ordering platforms, it certainly isn’t easy to be best of breed in your industry.


When it comes to inventory decisions, best of breed companies are much more sensitive to customer demands, knowing that provided valued added services can be the best method to retain customers long-term. This provides a competitive edge that can typically only be delivered via a world class business software system.  

Another factor involved in success of a company depends on the order-to-delivery timeframe, which is less than a fourth of the lead time for other companies. By keeping lead times Minimized, this results in reduced costs and higher gross profit margins.

Studies have identified the following statistics for best-in-class distribution companies:.

  • 86 percent of companies have the ability to master the tradeoffs between service level and inventory investment whereas only 47 percent of other companies achieve this.

  • 78 percent of best-of-breed companies have a closed-loop integration of supply chain planning and execution whereas only 52 percent of other companies do.

  • 67 percent of best of breed companies have the ability to precisely measure the required inventory investment needed to achieve the highest service levels whereas only 46 percent of other companies do.

In order for your company to gain this level of inventory visibility your business software system should provide the functionality to maximize the tradeoffs between service level and inventory investment.  If your current business software system is not providing your company with the ability to maximize customer service while minimizing inventory costs, contact Micro Force – Socius to have us help you begin this process.

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