The key to profitability in distribution is being able to fill orders your customer needs while minimizing your stock on-hand. Quite often we see most of the focus placed on the sales side trying to generate orders to match what is in stock. Too much stock, run a promotion, offer a discount, or bundle.
Inventory management is a big deal. You need to store it in properly, monitor lot/batch expiration dates, and be able to find it when you need it! A big part of finding it is keeping an accurate count.
When you count your inventory once or twice a year, each count takes lots of time, usually done in a hurry, sometimes with outsourced help and may reveal significant gaps comparing to the books. Frequent counts of parts of your inventory (cycle counts) is more efficient and improves overall accuracy.
Improving the efficiency in your warehouse is key to increasing profitability in a world where margins are constantly under pressure. The more your business grows, and the more sophisticated your products become, the more it feels like your warehouse is out of control. Worse yet as the complexity increases and your accounting software falls behind, your growth is limited and margins shrink.