Best Practices for Wholesale Distributors

Wholesale Distributors

From inventory handling to curating and maintaining healthy relationships with customers, a successful wholesale distribution company relies on many different factors to help it run smoothly. But no matter what practices that wholesale distributors put into motion, at the end of the day, it comes down to giving your customers the convenience and experience they are hoping for to ensure long-term success all around.

Wholesale Distributors: Leverage These Techniques

Here are a few best practices to use to avoid or limit risks in distribution business operations and create more opportunities for a successful business.

Control Your Inventory

Successful inventory management is crucial to the overall business of a wholesale distribution company. You should be maintaining enough stock to keep business running and fulfill orders. And while it may seem clear to stock up to execute this, more stock and more volume don’t usually mean the same thing. It’s important not to stock more than what you need and inventory calculations, like lead time and reorder levels, apply to wholesale distribution.


Inventory management software can help synchronize all orders across wholesale and retail channels. Software can help track the status of orders all the way until delivery, return, or replacement.

Inventory management can also help with the automated raising of purchase orders. A benefit of automation here is that if an order comes in after business hours, taking inventory down to low levels, an inventory management system can automatically send out orders to vendors.

Training Staff

Training employees will not only get them familiar with their job, the company, and the industry but it also helps raise awareness around limiting risks. To limit risks in distribution business operations, companies need to invest in effective training and education. Does your team know how to work with software? Does your company have training programs and operating procedures in place to help provide direction? This makes a big difference when not only handling stock but keeping claims from customers away.

Unfortunately, many different issues that are caused by human error can be avoided. However, if an issue with stocks or orders comes up, possibly hurting a relationship with a customer, effective wholesale distribution insurance will come in to help provide financial help to make up for trouble with cargo or liabilities.

Take Care of Cash Flow

Cash flow is important for a wholesale business where order sizes and prices come in at high marks. Wholesale distributors may feel inclined to extend credit to their customers, but this should be avoided to keep away from being overextended. Distributors should put limits on how long a buyer’s credit period can extend. Managers can calculate this amount based on their estimated free cash flow for the coming quarters.

Managers should tally how much cash they would need in order to continue fulfilling orders and procure inventory.

Also, make sure to communicate to your buyers that your terms of credit are concrete and that further orders will be fulfilled once the credit is taken care of.

The Hilb Group Can Help Florida Wholesale Distributors

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.