Effective Finance Management for Wholesale Distribution Industry

When you have a wholesale distribution business in today’s uncertain and highly demanding global market, having a robust financial management system can offer you multiple leverages that can cushion your business growth against fierce market forces. There are many challenges the wholesale distribution sector of the UAE and other regions have to face. Right from the rise in labor cost, dynamic market demands, trends, regulations, logistics, and supply chain management, a wholesale distribution business has to take care of every operation. Financial management is one such task that has to be performed efficiently and effectively in order to keep the business engine running and moving ahead.

Thanks to technological advancements, wholesale distribution businesses in Dubai can rely on technological assistance to perform and monitor many recurrent yet crucial business operations. Financial management software comes to the rescue for such mall, medium, and large scale market players of the wholesale distribution sector. However, like any other software or IT product, financial management software can be of some help only if it is built to do so. Here are a few things to look for in the financial management solution.

Capability to expand its operations and capacity

A financial management software that you decide to use to perform functions like general ledger, inventory, accounts payable and receivable, and other financial tasks must allow you to perform other business operations too. The ROI of such a system will be high, and its utility will be improved if it allows you to integrate with other business systems like CRM or SCM. Such expandability ensures smooth flow of data, uninterrupted user experience, and removal or mitigation of hurdles in data sharing or functionality throughout the applications. With an effective financial management system, data accessibility becomes easier and faster; employees and the concerned staff can easily find their way to the information of their concern. One integrated database will let you and your staff know every detail about production schedules, sales orders, marketing campaigns, inventory levels.

Customization

A professional wholesale distribution ERP Software ought to offer you all the data on the current reports and forms; you should be able to add and remove different fields on the forms or reports. The system should also allow you to create your own customized reports or forms with your brand name. Customization also adds to the ease of use and satisfaction.

Audit Trails and Legality

You cannot manage finances effectively if you cannot monitor them. The financial management solution you choose must offer you features like audit trail, data verification, or security. The system also must be in compliance with the laws of the land.  Audit trails allow you to keep track of every transaction, and you can always go back to the entity who initiated the transaction and the entity with whom the transaction is being conducted, the amount, time, date of the transaction, etc.

Reporting and Analytics

Go for a financial management solution that supports or incorporates reporting and analytical systems. It is important to have a flexible and user-friendly reporting and analysis feature to allow your executives and analysts to get the insight in order to make informed decisions. Easy and smooth incorporation helps in faster decisions and immediate insights.

Estimation & Forecast

Wholesale distributors always walk a tightrope managing different business scenarios effectively in order to deliver the best in time. These businesses will be able to perform better if they have access to the crucial data and insights, enabling them to forecast or predict market scenarios. A software will always be in demand if it offers multiple iterations of budgets & estimates, business scenarios, and what-if insights.

Ease of Use

It is a no brainer that if any business is installing a new system or a technology, it will make sure that the system is easy to understand and easy to use. The whole point of using technology is to have an easy to operate assistance that can solve complex business issues. The financial management system for warehouse distributors has to be user-friendly and a system that every staff of even a small business can easily understand.  Ease of use adds to the user’s productivity and eventually leads to business growth through an effective workflow.

Financial management data build a robust foundation for the success of every warehouse distribution business. Businesses can undertake improved performance and planning only when they have access to the precisely measured financial management data. This data is then provided to the decision-makers of the business from the financial department.

Well managed financial data is available to all the concerned stakeholders for their respective decision-making processes. A financially well-managed warehouse distribution business is most likely to grow in the market with a better loss or shock absorption mechanism that keeps it performing to the maximum capacity even during the uncertainties. A well gathered, accurate, and updated financial data is at the base of every business decision.