Warehouse alley

Case study

Distribution MA

Faced with Distribution MA's major challenges - lack of inventory visibility and unstable margins - Witify developed a tailor-made WMS and ERP solution, radically transforming the company's operations. This innovative solution optimized inventory management, stabilized margins despite fluctuating supplier prices, and significantly improved operational efficiency.

Custom Management System
Custom ERP
Distribution
Client
Distribution MA
Year
Business type
SMB
Warehouse alley

Optimization objectives

Distribution MA, a company specializing in product distribution, was facing major challenges in managing its operations. The main issues were :

  • complex visibility on current and reserved inventories
  • Difficulty in stabilizing profit margins in the face of supplier price variations.

These challenges led to the implementation of a WMS (Warehouse Management System) and ERP (Enterprise Resource Planning) project tailored to the company's specific needs.

Item

Proposed solution

To meet the challenges of Distribution MA, an integrated WMS and ERP system has been custom-developed. The key functionalities of this solution are

  • Inventory management
  • Intelligent procurement (including lead time)
  • Order management
  • Customer management (with customized prices per customer)
  • Customer portal for self-service
  • Full integration with QuickBooks
Smart procurement

Smart procurement

Distribution MA handles a wide range of product references to satisfy customers with diverse requirements. Their ability to provide quality customer service, often with delivery times of less than 48 hours, is based on sound inventory management, aligned with market expectations, and an efficient procurement strategy.

The intelligent purchasing module we have developed enables continuous monitoring of stock levels, consumption trends and replenishment times. Thanks to an advanced algorithm, it analyzes this data to recommend purchases adjusted to sales forecasts and logistical constraints. This approach combines analysis of past data, strategic planning and future predictions to optimize inventory management, reduce costs and maximize operational efficiency.

Inventory management

Inventory management

Distribution MA has several strategically-positioned premises to store its inventory and optimize delivery times. On a daily basis, the team manages a significant volume of incoming and outgoing products. It is crucial to maintain not only stock quantities, but also a detailed history of inventory movements. In addition, configurable information is provided to define relationships between items, including the list of suppliers for each product, associated prices and the main supplier.

Distribution MA's ERP inventory management system ensures that all transactions-in and out-are meticulously recorded, with a range of metadata such as transaction type (manual, purchase order receipt, sales delivery, etc.) and associated financial details. This method enables precise tracking of the evolution of inventory in monetary and quantity terms, both on a global scale and for each item individually, facilitating cross-checks and the creation of audit reports. In addition, this information feeds advanced analyses, generating performance indicators, average consumption and forecasts.

Order

Orders and costs

As a distributor in an industry where prices fluctuate frequently, Distribution MA keeps a close eye on its costs and selling prices to preserve margins and ensure its long-term survival. This management must be carried out in a controlled manner to maintain solid customer relations. In addition, the company has to manage a substantial volume of orders, often including long lists of items.

The ERP system offers an ergonomic interface for tracking orders, including advanced filtering, search and display customization functions. Each order is organized by department, making it easy to check items and prices. Intelligent visual alerts are triggered to ensure that sales staff meet their sales targets.

For example, the system automatically calculates the cost of each item sold and displays the anticipated margin. If the margin is below target, an alert warns the sales assistant before the order is finalized. What's more, if products have to be put on back-order due to supply delays or high demand, the system intelligently identifies the missing quantities, records them and generates reminders to prioritize their delivery as soon as they are replenished.

Rapports comptables

Accounting reports

Financial management, both in terms of profitability and cash flow, is essential for Distribution MA. Easily accessible reports that offer real-time visualization of financial data, as well as access to historical data, are crucial.

The ERP system provides the management team with advanced, scalable financial reports, capable of presenting a wide range of information. These reports can be viewed at a global or detailed level, enabling the extraction of various financial metrics specific to customers, items, orders, purchase orders, suppliers, and more.

In addition, the system facilitates the recording of incoming and outgoing payments, as well as sales or purchase credits. This data is then used to generate consolidated account statements for customers and suppliers, in line with established payment terms.

Client portal

Customer portal

Distribution MA handles a high volume of orders and items per order, with specific price contracts and both standard and customized product offerings. Faced with a less technology-savvy clientele, the sales team used to spend a lot of time dealing with requests received by phone or email, and entering them manually into their old system.

The new system now incorporates a customer portal offering advanced price and product customization options. Designed to be intuitive and ergonomic, the portal facilitates online ordering, intelligently suggests available delivery dates and automatically calculates prices. A notification system keeps customers informed of the progress of their orders and sends invoices at the appropriate time. Customers can also pay their invoices directly on the portal, thanks to a secure payment module, and download their purchase orders. Finally, various functions, such as access to purchase history and the ability to reiterate previous orders, have been integrated to smooth and speed up the purchasing process.

The creation of the customer portal has significantly increased customer satisfaction, while reducing the time Distribution MA had to spend on unproductive administrative tasks.

Results and benefits

+35%

Margin increase

-55%

Reduce manual order entry

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