Wholesale Distribution companies that deliver orders and products are challenged with a whole spectrum of liabilities and concerns. Thin profits per order and thousand of dollars in mobile warehouses (Trucks) make keeping drivers honest a necessity. As companies grow, the need to adhere to a system approach of driver accountability and reconciliation becomes essential. Vehicle inspections, adds and cuts to truck inventory and invoicing of orders and credits become the backbone for tracking and keeping your drivers honest.
1. Hire the right people from the beginning. Let it be known that your company is based on honesty and that you are looking to hire someone who shares the same core values. Sometimes the need to hire is rushed, not realizing the impact of a poor hire. An employee that steals $20 per day will cost you $4000 over the year.
2. Maintain two levels of authority or segregation of duty. Make sure that you have a resource layer that accounts for inventory coming and going to and from trucks, reconciliation of orders and credits and the accountability of moneys collected in the field. Is there anything other than honesty to prevent a driver from trading his truck inventory for lunch or giving to a friend? It is quite common for a driver to sell product and then receive cash and then tear up the invoice and pocket the cash.
3. Require daily truck inspections with verification pictures before the truck leaves the depot. Motor vehicles incidents are responsible for more work-related deaths than any other loss source. Most of us have heard a driver not taking responsibility with “it was like that when I came in this morning”. The benefit of electronic inspection app is to save time, enable better communication, to take immediate action and to keep a historical record of truck, driver and pictures of issues and concerns.
4. Warehouse control for receipt of goods and load out of inventory is essential for tracking your inventory turns, sales and returns. The “Winging it” approach to warehouse management prevents reconciliation, transparency and visibility to your assets. Many WMS systems are available - make sure you are choosing the right one with integrated mobile, ERP and flexibility of features.
5. Deploy an Order Management system that incorporates all of the customer oriented processes that are open to theft and vulnerability. Your customers expect that you will accommodate them with a multitude of sales avenues, like ecommerce, rep calls, email orders, presales and delivery. The right order management system will bring all these sales options together and provide the tools to collect, manage and analyze your drivers' performance and keep them honest.
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Today we'd like to talk about how distributors handle the challenge of having multiple lines