Inventory management software development for distributors

Several warehouses

• Stock by location

  Available quantities shown per warehouse.

• Fulfil from the best site

  Orders allocated by stock and delivery area.

• Transfers

  Stock moved between sites, tracked in transit.

• Rebalancing

  Suggestions where one site is short and another has surplus.

Knowing the landed cost

The price on a supplier's invoice is rarely the whole cost. Freight, import duties, insurance and handling add to what each item really costs. If these are not allocated to stock, margins look better than they are, and pricing decisions suffer. Inventory software can apportion these costs across the items in a shipment, by value, weight or quantity, so each item carries its landed cost. Agree the allocation method with your accountant.

Landed costs also make supplier comparisons fairer.

Purchasing inputs

Allocating stock to orders

Dealing with slow-moving stock

Distributors carry many product lines, and some sell slowly. Reports of items with no sales over a period, or with stock far above typical demand, highlight cash tied up in the warehouse. That supports decisions to discount, return to suppliers, stop reordering or transfer stock to a site where it sells. Reviewing these reports regularly keeps the range healthy.

A practical approach

1. 01

   Accurate stock by site

   Counts and receiving cleaned up first.

   Output: Trusted quantities

2. 02

   Allocation rules

   Orders allocated consistently.

   Output: Fair fulfilment

3. 03

   Purchasing suggestions

   Reorders from demand and lead times.

   Output: Timely buying

4. 04

   Costing and reports

   Landed costs and slow-mover reports.

   Output: Better margins

Connecting sales channels

Distributors often sell through trade accounts, an online portal and sometimes marketplaces. Each channel should draw availability from the same stock records and reserve stock when orders are accepted. Integration with accounting carries stock values and cost of sales.

Receiving large inbound shipments

Distributors often receive full containers or pallets with many lines. Receiving against the purchase order, with scanning where possible, confirms quantities quickly and flags shortages or damage for the supplier. Advance shipping notices from suppliers, where available, let the warehouse plan space and labour before goods arrive. Stock should become available for sale only once it is received and put away, to avoid promising items still on a lorry.

Recording receipt dates also supports landed cost allocation.

Planning for seasonal demand

Many distributors see seasonal peaks. Using the same period from previous years, adjusted for growth, gives a reasonable starting point for buying ahead. Software can suggest quantities, but buyers' knowledge of promotions, new customers and market changes should adjust them. Recording why suggestions were changed helps improve future planning.

Customer and supplier returns

Returned goods should be inspected and either restocked, held for supplier return or written off, with each step recorded so stock and credits stay accurate.

Counting without closing

Rolling cycle counts by warehouse zone keep figures accurate without stopping dispatch for a full stocktake.

Tracking supplier performance

Recording promised and actual delivery dates, shortages and damage for each supplier builds a factual picture of reliability. Lead times used for planning can then reflect what suppliers actually achieve rather than what they quote, and conversations about performance can rest on evidence. Over time, this improves both purchasing accuracy and supplier relationships.

Kits and bundles

If you sell bundles made from stocked items, stock for the bundle should be calculated from its components so neither is oversold.