Intuitively, we all know that business is an input as well as an output model. This means that the output you get is dependant on the input that you put in during the whole process. But somehow, there seems to be raging disparity among the results that different people get when they start up their businesses with similar resources. This issue is highly prevalent in the online retail industry. It is a well-known fact that this industry is supply driven. The ability to find a good wholesaler is the ability that will determine your success or failure. But there are instances when there are two retailers that are using the same wholesaler but get very different results. Here is the reason why:
Most of the disturbances are internal: For all the managers out there who like to play the blame game, there is some bad news. Research has shown that majority of the blame that each party places on the other in a wholesaler retailer relationship has internal causes. This doesnt mean that it can never be the fault of the external party. But rather, it means that if you see a pattern developing across all your interactions with every drop shipper, it is time to consider whether you are giving the suppliers adequate resources to fulfill your needs.
Coordination among various departments is required: A large amount of coordination is required both internally and externally for the wholesaler retailer relationship to work properly. For instance, if you are working on a dropshipping model, you need to inform the wholesale USA supplier the moment you close the sale. This gives them adequate time to prepare and then delivery can be made on time. However, what usually happens if the operations are not automated is that this information reaches the purchasing departments very late. Even then, the finance guys delay the approval of payment. Finally, the order reaches the poor wholesaler late. A delayed delivery is almost inevitable as a result of such operations. No matter which wholesaler you go to, the problem will persist because the problem is internal and not external.
Real Time Information as a Solution: Many consultants have studied this wholesaler retailer coordination problem for quite some time now. They have come to the conclusion that automation is the most viable solution to the problem. There are also packaged solutions available on the market, which make it cheaper and easier to implement software solutions. Minimizing human interference is the best way to ensure real time, error free flow of communication between the necessary departments.
Difference between Professional and Usual: Even the best-organized, manual systems fall short in the face of an ordinary automated system. This small degree of superiority is what differentiates you in the eyes of the customer.
It is therefore more important to figure out a way to develop a workable relationship with your wholesaler than chasing here and there looking for new ones. The improvement will give longer lasting business results.
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