Wholesale distribution
Distribution runs on thin percentages across a lot of movements. When pricing tiers live in one system, stock levels in another and freight in a spreadsheet, the margin on a line is worked out afterwards. Nobody can act on it.
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A wholesaler does not have one price. It has a price per customer, per quantity, per category, and it changes. Most of that ends up in somebody's head or in a rate sheet nobody trusts.
Stock that refills itself
The same item does not turn at the same rate in every branch. One reorder level across the business is either tying up cash or running out.
Getting it out of the door
Picking each order as it arrives means walking the same aisle forty times a day. The saving is in grouping the work, and that only happens if the system decides the grouping.
Orders are released into waves and sorted by criteria set against the document type, so a day's picking is planned rather than reacted to. What is picked is packed into packages that carry their own contents, so a delivery note matches what is physically on the pallet. Transfers between warehouses are confirmed on both sides, which is where a discrepancy shows up while it is still findable.
What it really cost
An import lands with freight, insurance, duty and clearing on it. Posted as overhead, the item looks cheaper than it is and the margin report is wrong in a direction nobody notices.
Landed costs are allocated onto the receipt lines they belong to. Six methods: by quantity, by weight, by volume, by value, evenly, or by a line you nominate. The cost of the item includes what it took to get it here, so the margin on the line is the margin.
The rest of it
Distribution software that does not do the accounts is another integration to maintain. Onfinity is one system: the goods receipt that updates stock is the document that posts the liability.
What else is in itOne customer order with a quantity break on it, the stock it moved and what the freight was. That is enough to show where the margin per line stops being a number anyone can trust.
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