There are various popular and promising business or service businesses, one of which is distribution find more. This distribution business is often the choice because it does not require too much capital, losses can be minimized and there is no need to bother with the licensing of goods because it is not the responsibility of the distributor. Even though the profit per item is fairly small, but if it is a large-scale business, the profit will certainly be large. On the other hand, if your distribution company handles a large freight yard too, we suggest you apply the excellent yard management software into your system.
In many cases, there are at least four things that most often become obstacles or problems in the distribution business. These four things are as follows:
1. Difficulties in Controlling Salesmen
As a distributor, the presence of a salesman is also very important. Therefore, the management of this salesman must be serious with good and correct SOP. If not, distributor activities will be hampered even loss.
2. Difficulties in Controlling Customer Limit Credit
Affairs of the flow of money are certainly very influential in any business activity. In distribution, customer receivables are most often the obstacle. Therefore, it is necessary firmness in determining the payment due date so as not to damage the entire distribution activity.
3. Difficulties in Determining Transportation Efficiency
Shipping goods will greatly affect cost savings. Mistakes in determining the most efficient transportation will affect the financial distribution business.
4. Difficulty in Controlling the Entry and Exit of Goods
There is a very important thing in the distribution business, which is a matter of managing stock or in-out goods. In this case, data collection and in and out reports become crucial because that is where the core of the distribution business activity begins. Especially if the distribution business has a large scale with thousands of goods and even has branches in other places, it will be fatal if the stock management is not handled properly. One way to manage the stock is through reports on the distribution of goods.