Growing your wholesale business is your main objective. Have you thought about the important investments it would take to get your wholesale business to the next level? Maybe you already outsource your warehousing, so why not consider outsourcing your back office? You could enjoy cost savings, have more time to work on your business, and gain a competitive edge.
Grow with More Investments
When you have to deal with wholesale back-office issues, you can’t focus on growing your business because it becomes difficult to concentrate on your core strategies. For many wholesalers the smartest way to grow your business is to rid yourself of the headaches of your back-office operation, allowing you to focus on business expansion.
Why invest in outsourced services?
Many other companies have done so. In Deloitte’s 2016 Global Outsourcing Survey, 78% of respondents felt positively about their outsourcing relationships. These global businesses also reported the reasoning behind their decisions to outsource.
Here’s what we know:
- 59% of the businesses surveyed outsource as a cost-cutting tool
- 57% say it enables them to focus on their core business
- 47% outsource to solve capacity issues
- 31% outsource to enhance service quality
- 28% find outsourcing to be critical to their business needs
- 28% outsource for access to intellectual capital
- 17% use it to manage their business environment and
- 17% outsource to drive broader transformational change
There are many reasons to consider outsourcing, especially if you want to:
- reduce and control your operating costs
- improve your company’s focus
- gain access to a wider talent pool
- free up internal resources for other roles
- streamline efficiency for time-consuming functions
- leverage faster turnaround times
- get accurate results or
- enable your current employees to work productively in other areas where they’re better suited
In the last decade, corporations in the United States have outsourced more than 2.4 million jobs. Some 57% of companies have increased their use of outsourcing, while another 34% restructured one or more of their outsourcing agreements.
When you invest in back-office services, you’re investing in time. The kind of time that helps you cut costs and allows you to focus on exponential business growth. Time is money, so making wise investments is critical to the potential of your wholesale business.
Partnering with a back-office service gives you the power of expert execution of time-consuming back-office tasks without having to deal with the costs of recruiting, hiring, paying, and medically covering multiple employees. This can save a great deal of time and money in the long run.
Here are four services available that may be smart wholesale investments for your company. They include services in accounting and bookkeeping, master file maintenance and inventory control services, and invoice and order processing.
1. Accounting and Bookkeeping Services
Accounting and bookkeeping are services that would be ideal as wholesale investments. You may not have the most experienced staff on-site where mistakes can become serious issues. Consider investing in outsourcing companies or individuals who know the specific ins-and-outs of the wholesale business in accounts payable and receivable, general ledgers, bank reconciliations, and financial statements.
Accounting and bookkeeping consume a significant amount of time for your in-house staff and require a high level of accuracy and proficiency, with 100% compliance to regulations. You also have to take on accounting software like Quickbooks, Peachtree, Sage, and other Enterprise Solutions, and these are time-consuming to learn, not to mention some can be expensive to buy.
When you consider making these wholesale investments, outsourcing your accounting work service provider would bring consistency and stability to your business.
2. Master File Maintenance and Inventory Control
When you make wholesale investments in master file maintenance and inventory control services, you outsource your master files. These hold information about your employees, customers, products, and vendors. Specific vital data is entered: names and account numbers, and a variety of data specific to each of the groups.
Getting your inventory levels right is crucial for controlling your costs. Investing in back-office services helps you improve your overall process efficiency, concentrate on your core competencies, and reduce logistics and carrying costs. It also frees up resources, minimizes management distractions, and lets you focus on your capital.
Investment in Invoice and Order Processing
Processing of invoices and sales orders has many facets. It includes data entry, EDI compliance, and e-commerce integrations.
When you make wholesale investments in invoice and order processing, your outsourcing partner takes care of the complex work surrounding this area, including the assigning and factoring accounts receivables.
As services are automated, there’s no hardware or software to buy or learn to use, contributing to savings in your infrastructure and the time needed to have employees learn new technology. These service providers do all of the data entry and EDI translations and help you eliminate EDI-related chargebacks, enabling you to focus on your business and what you do best.
Investment in Coordinating Services
When you make wholesale investments in coordinating services, you can leverage services that deal with your business’ factories, miscellaneous suppliers, and freight brokers. Service providers can perform allocation, picking, and routing services as well as cash application, chargeback disputing, and factor reconciliations.
Investment in Outsourced Services
It’s time to put your wholesale investments into action with wholesale back-office services. There are many advantages in making the change. You’ll have significant cost savings, more time to focus on your business’ growth, and so many other positive changes in your wholesale company. It’s time for a smart investment.
Wholesale Executive Insider is a publication dedicated to helping wholesale execs stay up-to-date with the latest industry insights to improve their operations and increase their bottom line.
Our team has in-depth industry knowledge, and a network of solution providers that help wholesalers make smart business investments. If you’d like to get free advice and recommendations on the type of services that would allow you to grow your business in less time, feel free to book a time to speak 1-on-1 with one of our knowledgeable industry advisors now.