Wholesale distribution

The margin is on the line, not the month

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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Trade pricing

Quantity breaks that hold, without a rate sheet

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.

Tiers are held as rules
A break carries a threshold and a discount. At or above this quantity, this percentage. The tier applies itself when the line is entered.
Scoped where it belongs
A break can apply to everything, to one product category, or to a single product. So a volume deal on one brand does not quietly discount the rest of the order.
Price changes are dated
Price lists are versioned and each version has a date it takes effect. Next quarter's prices are loaded now and start on their own, rather than being retyped on the morning they apply.

Stock that refills itself

A minimum and a maximum, per product, per warehouse

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.

The rule belongs to the pair
Each product holds its own policy in each warehouse: reorder below a minimum, top back up to a maximum, or leave it to a buyer.
Refill from the next warehouse, not the supplier
A branch can name a source warehouse. What it needs comes as a transfer from stock already owned, and only what nobody has gets bought.
Order in the units you actually buy
A minimum order quantity and a pack size sit on the same rule, so a suggestion arrives as four cartons rather than 47 pieces.

Getting it out of the door

Picked in waves, packed into what ships

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

Freight and duty on the item, not the month

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

Purchase, sales, accounts and stock on one ledger

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 it

Bring one order and its margin

One 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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