3 Examples of Business Challenges and Solutions. Beginners Must Read!
Oleh Tim Distri · · Diperbarui · 3 menit baca
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- As a business grows from a few orders a day to hundreds, small operational problems become serious.
- Three common challenges: missed orders from manual order and shipping records, stock differences because warehouse stock and online and offline sales are recorded separately, and poor sales strategy when the cost of goods sold (COGS) of each product is not calculated properly.
- COGS is the total direct and indirect cost of producing or buying a product, and it is the basis for setting selling prices.
Running something, whatever it is, must have its challenges. Running a business is no exception. As a result, many business owners decide to quit in the middle. Still, many also continue to persist and seek solutions to business challenges that come their way.
When talking about business challenges, maybe the first thing that comes to mind is financial issues. Will the product sell well? Will the business make a profit? Distri has discussed these things in the previous article about the first step to starting a business, which you can go over 🙂
However, real business challenges can also arise from trivial things. Especially when your business is starting to grow, from a few orders a day, suddenly becoming hundreds per day. It’s natural to feel overwhelmed.
However, don’t worry! It is a good problem to have and Distri has tips for you to overcome it!
3 Examples of Common Business Challenges
1. Missed Order
This problem is familiar when your product is well-known to the public. Especially if your marketing strategy is viral, orders will usually come in droves. Actually, this is a good sign. It means that your plan has succeeded in attracting people’s attention.
However, what if your business, initially only selling 1 to 10 products daily, suddenly has a booming order? Then, of course, missing orders are standard.
Jotting down a list of orders and recipient addresses, and packing and arranging shipments in large quantities can increase the potential for missed orders. This can lead to disappointment for potential customers, and if it happens often, customers may switch to competitors’ products.
2. Stock Difference
This happens to businesses that are just starting to develop, and even established businesses also often experiencestock difference problems.
This problem usually occurs because the stock recording is still manual. Warehouse stock, online & offline sales, and stock-in & stock-out are carried out separately, so they are not synchronized. Stock updates are usually done at the end of the day, even month.
Imagine your customers can’t buy your product because the status of your products in e-commerce is sold out. When in reality, there are still many left in the warehouse. You’re missing many opportunities!
3. Bad Sales Strategy
When your business starts to develop and innovate by releasing various products, they will have different selling prices, as well as different Cost of Goods Sold.
Cost of Goods Sold (COGS) is the total cost to produce a product (directly or indirectly), for example, the cost of raw materials, production, overhead, and so on. For the distribution business, COGS includes the purchase price from the producer/supplier. This COGS will be the basis for determining the selling price.
Your company will know how much profit it gets from this calculation, which can be used for business operations later.
To calculate the product’s COGS, you must input many items. What if your product is not just one? This is where the problem arises. Miscalculations and incorrectly input COGS can make your business deficit.
Distri, A Solution to All Your Business Challenges
Distri distribution system is integrated with full features to support your business development. For example, Distri sales management features are integrated directly with the salesman application. So, you don’t have to worry about missing orders.
Orders from the application will go directly to a web portal that management can access directly, so they can be processed immediately. It is also synchronized with the stock and COGS of each product. Once an order is made, it will be updated on all platforms (web portal, integrated salesman application, e-commerce) immediately.
All business activities, from sales and invoices to stock, are synchronized with the Distri accounting system. As a result, it will be easier for you to analyze your business comprehensively, quickly, and accurately.
Are you curious about what else Distri can do?
You can try the Distri system for free via the following link:
Pertanyaan yang sering diajukan
What business problems appear when orders grow quickly?
Missed orders, stock differences between records and the warehouse, and pricing mistakes from not calculating COGS per product.
Why do stock differences happen?
Stock is often recorded manually and separately for the warehouse and each sales channel, and updated only at the end of the day or month.
What is COGS?
Cost of goods sold: the total cost to produce or purchase a product, which is used to set its selling price.
