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Common Challenges In Trading & Distribution Industry

Year 2021
August 2021
Common Challenges In Trading & Distribution Industry
09 Aug 2021

How to Deal With Biggest Challenges in Trading Distribution Industry Banner - Common Challenges In Trading & Distribution IndustryTrading & Distribution (T&D) industry has been an integral part of economic growth. These days, the ever-evolving economic scenario drives T&D businesses to become more competitive than ever, and they have to face several challenges. Although T&D businesses are diverse in operation modes, the challenges they are facing are relatively similar. In this article, we would like to give you a general picture of the current common challenges in T&D industry and how to beat them off.


Inventory management practice is very important and essential for distribution sectors. Products and goods in storage facilities are needed to keep track all the time to ensure the available quantity. However, it is one of the most common challenges in T&D industry that T&D companies do not come up with real-time stock tracking and reports from warehouses. As a result, this causes severe delays in delivery to restock materials, and apparently, frustrates customers and prospects.

In the current days, one way that helps T&D firms control inventory more efficiently is manipulating technological solutions such as an Enterprise Resource Planning (ERP) system with various choices of ERP vendors. Let’s take Synergix ERP software as an outstanding example. Synergix ERP system provides extremely cost-effective and efficient solutions that help to track the stock in real-time. The system properly labels all the products and goods with batch number, lot number, serial number and barcode system. In return, T&D companies never lose track of the stock status and can schedule proper time for product import and delivery.


Using e-commerce trends is no longer strange for T&D businesses to attract and retain new customers and prospects. It makes the T&D market become more competitive than ever when all candidates are scrambling to establish an online presence. However, the common challenge in T&D industry indicates that most of T&D businesses have not known how to leverage online sales yet. They seem to stick to the traditional methods which have many disadvantages. 

Obviously, when an industry switches to a new platform, there will be several barriers at the start. The advice here is that T&D businesses need to catch up with the latest trends, advanced technologies and digital transformation. By this, businesses can have a better understanding of customers’ insights and prepare an attractive e-commerce platform.


Another common challenge is that businesses in the T&D field need to deal with increasing competition from manufacturers. Thanks to highly flexible supply chains and logistic operations, manufacturers are able to sell products directly to customers, bypassing business distributors. Hence, manufacturers can increase their profit and bottom line by selling more products in a shorter time interval. The distributors, therefore, need to improve their business system, train their staff for higher efficiency, etc. to keep pace with the competition from manufacturers, thereby distributing timely to sellers and retailers. 

In this case, Synergix ERP solution provides Business Analytics feature that supports businesses in analysing accurate insights of warehouse status and delivery performance, so that businesses can be aware of the available product quantity and under-performing sectors. The system also empowers T&D businesses to immediately allocate the requisitioned products to an existing sales order. This ensures that backorders can be fulfilled on time, and all products are adequately delivered to the right addresses and receivers upon receipt.


Many T&D companies encounter the problem of late and wrong shipments. This drives retailers to tighten delivery deadlines and even impose stiffer penalties on distributors due to the great number of orders. T&D sectors will incur heavy fines if they deliver late and inaccurate shipments as well as have ordering mistakes. 

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To deal with this challenge, many T&D businesses have invested in technological software and additional employee training courses to meet the ever-increasing demands from retailers. Specifically, it is worth utilising Synergix ERP software to manage and control all the delivery information upon each order. The software is able to capture and relay pertinent information from sales and delivery modules, which can reduce information loss and error. As such, businesses can ensure information integrity during shipment and transportation.


To encourage T&D businesses to engage in the digitalisation world, especially in the present epidemic of 2021, Singapore Government increases the support for Productivity Solution Grant (PSG) which offers a funding of up to 80% of the qualifying cost. Enterprise Development Grant (EDG) is also available to minimize the net cash impact. Since these grants are going to expire in March, 2022, this year is the best occasion to adopt an ERP system for T&D companies.

If you are looking for an ERP system in 2021, contact our expert today for a free consultation!

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