The challenges in distribution are Running a business is not an easy task as it involves various challenges. There  are many challenges in the distribution sector also. Let us discuss the common challenges faced by the distributors.

(i) Inventory Management: Inventory management is the process of ordering, storing, and movement of finished goods. It is one of the major challenges faced by the distributors where miscalculation of data, wrong data entry, less movement in particular type of product and other factors put together plays a crucial role. Maintaining a poor inventory leads to failure in the movements of goods already in stock and not maintaining the goods that are to be shipped immediately resulting in poor customer satisfaction and loss to the company.

(ii) E-commerce Platforms: To reduce the commission among the i n t e r m e d i a r i e s , manufacturers are selling their goods directly to their customers through E Commerce Platforms in order to increase their reach and revenue, which is a threat to the distribution and wholesale network. But it requires a greater web presence and backend team to manage all the work which all companies cannot adapt to.

(iii) Shipping Errors and Returns: Customer service department plays a main role here. With e-commerce booming and competitors increasing day by day, it is necessary to maintain a good customer service department and keep a track on records in order to survive in the market. Improper customer service leads to wrong product delivery, late delivery, etc which may reduce the potential of the company in the market.

(iv) Slow and Outdated Reporting: To run the business smoothly, one must have the right stock and inventory planning. Excessive inventory makes the product unsold and covers the area not allowing other goods to enter which are in need to be delivered. Those simple aspects may cause serious errors resulting in huge losses and not meeting the demands of the customer. This error can be rectified through periodical reporting and updates.

(v) Outdated Software: With the ecommerce and IT sector booming, one should update the company software and adapt to new technologies on a periodic basis in order to reduce the error and improve the profit margin. It is not easy to make change overnight but companies trying to update themselves will definitely sustain the competition in the current scenario. Adapting WMS – warehouse management software, ERP – Enterprise Resource Planning and so other software are available and choosing the right software for your companies improves the performance.