Master BigLedger’s comprehensive distribution management capabilities through realistic B2B scenarios that address the complex challenges of wholesale operations. This demo covers multi-tier pricing, credit management, logistics optimization, and advanced vendor relationships.

Complete B2B Distribution Management

Multi-Tier Pricing • Credit Management • Drop-Shipping • Logistics Optimization • Vendor Portal Integration

🎯 Demo Overview

This distribution demo simulates “MegaDistro Solutions,” a multi-regional wholesale distributor serving retailers, resellers, and online businesses. You’ll master complex B2B challenges including tiered pricing, credit management, logistics optimization, and vendor relationship management.

Industry Context & Challenges

Distribution Business Pain Points:

• Complex multi-level pricing structures with customer-specific rates
• Credit limit management and payment terms across hundreds of customers
• Drop-shipping coordination between vendors and end customers
• Logistics route optimization and shipping cost management
• Vendor relationship management with rebates and performance tracking
• Multi-location inventory allocation and inter-warehouse transfers

What You’ll Master

🚀 Getting Started

Demo Environment Setup

Sample Business Profile

MegaDistro Solutions - Our demo company setup:

• Industry: Wholesale Distribution (Electronics & Industrial)
• Locations: 4 distribution centers across regions
• Products: 15,000+ SKUs from 200+ vendors
• Customers: 800+ active B2B accounts
• Monthly Orders: ~2,500 B2B transactions
• Annual Revenue: $85M with 18% gross margin

📋 Core Distribution Workflows

1. Multi-Tier Pricing and Customer Management

Scenario A: Setting Up Complex Pricing Structure

Objective: Configure a multi-tier pricing system for different customer segments

Customer Story: MegaDistro serves various customer types from small retailers to large chains, each requiring different pricing structures.

Step-by-Step Workflow:

1. Define Customer Tiers

   • Navigate to Sales → Customer Management → Pricing Tiers
   • Create tier structure:
     • Platinum: Volume >$500k annually, 8% margin, Net 45 terms
     • Gold: Volume $200k-500k, 12% margin, Net 30 terms
     • Silver: Volume $50k-200k, 16% margin, Net 15 terms
     • Bronze: Volume <$50k, 20% margin, Net 10 terms

2. Configure Volume Breakpoints

   • Set automatic tier upgrades based on trailing 12-month purchases
   • Expected Result: System automatically promotes customers when volume thresholds are met
   • Configure tier benefits:
     • Platinum: Free shipping on orders >$1,000
     • Gold: 2% early payment discount
     • Silver: 1% early payment discount
     • Bronze: Standard terms

3. Customer-Specific Negotiated Rates

   • For key account “TechMart Corp” (Platinum tier):
     • Override standard margin on specific product categories
     • Gaming products: 6% margin (vs 8% standard)
     • Smartphones: 4% margin (competitive pricing)
     • Accessories: 12% margin (higher margin items)
   • Expected Result: Customer sees negotiated pricing in their portal

4. Pricing Matrix Validation

   • Test pricing calculation for sample order:
     • Customer: TechMart Corp (Platinum)
     • Product: iPhone 15 Pro, Qty: 25 units
     • Base cost: $1,000, Standard margin: 8%, Negotiated: 4%
     • Expected Result: Price shows $1,040 (vs $1,080 standard)

Scenario B: Credit Limit Management and Enforcement

Objective: Implement comprehensive credit management with automated controls

Step-by-Step Workflow:

1. Set Up Credit Limits by Customer Tier

   • Navigate to Finance → Credit Management → Customer Limits
   • Configure credit limits:
     • TechMart Corp (Platinum): $150,000 limit
     • Regional Electronics (Gold): $75,000 limit
     • City Gadgets (Silver): $25,000 limit
     • Corner Store (Bronze): $5,000 limit

2. Configure Credit Hold Rules

   • Soft Hold: Order requires approval if >80% of credit limit
   • Hard Hold: Block orders if >95% of credit limit
   • Past Due Hold: Block orders if any invoice >45 days overdue
   • Payment Hold: Release orders within 2 hours of payment receipt

3. Real-Time Credit Checking

   • Customer “Regional Electronics” places $85,000 order
   • Current outstanding: $45,000
   • Total exposure would be: $130,000 (exceeds $75,000 limit)
   • Expected Result: Order automatically placed on hold for credit approval
   • Notification sent to credit manager and sales rep

4. Credit Decision Workflow

   • Credit manager reviews customer payment history
   • Options presented:
     • Approve: One-time exception with documentation
     • Partial: Approve $30,000 portion, hold remainder
     • Decline: Request payment to reduce outstanding balance
   • Decision: Partial approval with customer notification

2. B2B Order Processing and Management

Scenario A: Customer Self-Service Portal

Objective: Enable B2B customers to place orders through integrated portal

Step-by-Step Workflow:

1. Customer Portal Configuration

   • Navigate to B2B Portal → Customer Setup
   • Enable features for TechMart Corp:
     • Custom product catalog (only approved SKUs visible)
     • Negotiated pricing display
     • Order history and tracking
     • Credit limit and balance visibility
     • Invoice access and online payment

2. Customer Places Order

   • Customer logs into portal with business credentials
   • Views custom catalog with 3,500 approved SKUs
   • Uses quick order functionality:
     • Upload CSV with SKU, Quantity columns
     • Bulk add 45 items to cart in seconds
   • Expected Result: Cart shows negotiated pricing and availability

3. Order Validation and Processing

   • System performs automatic checks:
     • Credit limit: ✓ Within limits
     • Inventory availability: ✓ All items in stock
     • Customer restrictions: ✓ No blocked products
     • Minimum order: ✓ Exceeds $1,000 threshold
   • Expected Result: Order accepted and assigned number B2B-2025-7891

4. Order Fulfillment Workflow

   • Order routed to nearest distribution center
   • Warehouse receives pick list with location optimization
   • Shipping department calculates best carrier/route
   • Expected Result: Order shipped within 24 hours with tracking

Scenario B: EDI Integration for Large Customers

Objective: Process high-volume orders through EDI automation

Step-by-Step Workflow:

1. EDI Setup Configuration

   • Customer: “NationWide Retail Chain” (Fortune 500 customer)
   • EDI format: X12 850 Purchase Orders
   • Frequency: 3 times daily (morning, noon, evening)
   • Auto-processing: Orders <$50,000 with available inventory

2. Automated Order Processing

   • EDI transaction received at 9:00 AM
   • 127 line items across 45 different SKUs
   • Total order value: $47,500 (within auto-approval limits)
   • Expected Result: Order automatically created and acknowledged via EDI 855

3. Exception Handling

   • 3 SKUs show insufficient inventory
   • System creates partial shipment:
     • Ship available items immediately
     • Back-order remaining items with ETA
     • Send EDI 856 ASN for partial shipment
   • Expected Result: Customer receives automated status updates

4. Performance Monitoring

   • EDI transaction success rate: 99.2%
   • Average processing time: 4 minutes
   • Exception rate: 5.5% (mostly inventory-related)
   • Expected Result: Continuous improvement through automated reporting

3. Drop-Shipping and Vendor Coordination

Scenario A: Direct-to-Customer Drop-Shipping

Objective: Coordinate drop-ship orders from vendor directly to end customer

Step-by-Step Workflow:

1. Drop-Ship Order Identification

   • Customer “Online Retailer LLC” places order for high-value items
   • Items flagged as drop-ship only:
     • 65" OLED TV: $2,200 (ships direct from Samsung)
     • High-end gaming laptop: $3,500 (ships direct from MSI)
   • Expected Result: System identifies vendor shipping requirements

2. Vendor Portal Integration

   • System automatically generates vendor PO
   • Samsung receives:
     • Product: 65" QN90B OLED TV
     • Quantity: 1 unit
     • Ship-to: End customer address
     • Special instructions: “Mark as gift, include warranty card”
   • Expected Result: Vendor acknowledges PO within 2 hours

3. Multi-Party Coordination

   • MegaDistro maintains customer relationship
   • Samsung handles physical fulfillment
   • Tracking information flows through MegaDistro to customer
   • Expected Result: Seamless customer experience despite complex logistics

4. Financial Reconciliation

   • Customer pays MegaDistro: $2,420 (including markup)
   • MegaDistro pays Samsung: $2,200 (net cost)
   • Gross margin: $220 (10% on drop-ship item)
   • Expected Result: Automated 3-way matching and payment processing

Scenario B: Vendor Performance Management

Objective: Monitor and improve vendor performance through scorecards

Step-by-Step Workflow:

1. Performance Metrics Configuration

   • Navigate to Vendors → Performance Management
   • Configure KPIs for Samsung (key vendor):
     • On-time delivery target: >95%
     • Order accuracy target: >99%
     • Damage rate target: <0.5%
     • Response time target: <4 hours

2. Real-Time Performance Tracking

   • Current month performance (Samsung):
     • On-time delivery: 92% (below target)
     • Order accuracy: 99.5% (exceeds target)
     • Damage rate: 0.3% (within target)
     • Response time: 6.2 hours (exceeds target)
   • Expected Result: Performance alert generated for delivery and response issues

3. Vendor Improvement Plan

   • Schedule quarterly business review meeting
   • Discussion points:
     • Delivery improvement initiatives
     • Response time optimization
     • Volume commitment negotiations
     • New product introduction planning
   • Expected Result: Documented improvement plan with monthly check-ins

4. Vendor Scorecard Impact on Business

   • High-performing vendors get priority for new products
   • Volume allocation adjustments based on performance
   • Performance impacts rebate eligibility
   • Expected Result: Improved overall supply chain performance

4. Logistics Optimization and Shipping

Scenario A: Route Optimization for Delivery

Objective: Optimize delivery routes to minimize costs and improve service

Step-by-Step Workflow:

1. Daily Route Planning

   • Navigate to Logistics → Route Optimization
   • Today’s delivery schedule:
     • 27 stops across metro region
     • 3 delivery vehicles available
     • Weight/volume constraints per vehicle
     • Time windows for specific customers

2. AI-Powered Route Calculation

   • System analyzes multiple factors:
     • Distance optimization
     • Traffic patterns (real-time data)
     • Customer time preferences
     • Driver capabilities and certifications
   • Expected Result: 3 optimized routes reducing total miles by 18%

3. Dynamic Re-Routing

   • 2:00 PM: Traffic accident blocks major highway
   • System automatically recalculates affected routes
   • Sends notifications to drivers with new directions
   • Updates customer delivery windows
   • Expected Result: Minimal impact on delivery performance

4. Delivery Confirmation and POD

   • Driver arrives at customer location
   • Uses mobile app to capture proof of delivery:
     • Digital signature
     • Photo of delivered goods
     • GPS location confirmation
   • Expected Result: Real-time delivery confirmation to customer

Scenario B: Multi-Warehouse Inventory Allocation

Objective: Optimize order fulfillment across multiple distribution centers

Step-by-Step Workflow:

1. Order Allocation Logic

   • Large order from “West Coast Electronics”: 150 line items
   • System evaluates fulfillment options:
     • Los Angeles DC: 120 items available
     • Phoenix DC: 35 items available
     • Denver DC: 25 items available (would require 2nd shipment)

2. Cost-Benefit Analysis

   • Option A: Split shipment (LA + Phoenix)
     • Shipping cost: $145 + $67 = $212
     • Delivery time: 2 business days both
   • Option B: Single shipment from LA + transfer
     • Transfer cost: $89, Shipping cost: $145
     • Delivery time: 3 business days total
   • Decision: Option A selected for faster delivery

3. Automated Transfer Requests

   • Phoenix DC missing 10 units of high-demand item
   • System generates transfer request:
     • From: Los Angeles DC (excess inventory)
     • To: Phoenix DC
     • Quantity: 25 units (buffer included)
     • Method: Next available LTL shipment
   • Expected Result: Improved inventory positioning for future orders

4. Performance Analytics

   • Fill rate by location: LA 92%, Phoenix 87%, Denver 94%
   • Transfer efficiency: 15% reduction in emergency transfers
   • Shipping cost per order: 2.8% of order value (target <3%)
   • Expected Result: Continuous optimization through data-driven decisions

5. Vendor Relationship and Rebate Management

Scenario A: Vendor Rebate Tracking and Claims

Objective: Maximize rebate earnings through accurate tracking and timely claims

Step-by-Step Workflow:

1. Rebate Program Setup

   • Navigate to Vendors → Rebate Management
   • Configure Samsung Q4 rebate program:
     • Volume tier: 5% rebate on purchases >$500k quarterly
     • Growth bonus: Additional 2% on growth >20% vs prior year
     • New product incentive: 3% on new model launches
     • Payment terms: Claims due within 30 days of quarter end

2. Real-Time Rebate Tracking

   • Q4 Samsung purchases to date: $487,000
   • Projected Q4 total: $525,000 (exceeds volume threshold)
   • Growth vs prior year Q4: +23% (qualifies for bonus)
   • Expected Result: Estimated rebate earnings $36,750

3. Automated Claims Submission

   • System prepares rebate claim package:
     • Purchase detail report with invoice references
     • Growth calculation with supporting data
     • New product sales documentation
     • Required vendor certifications and signatures
   • Expected Result: Complete claim submitted electronically to Samsung

4. Claims Reconciliation

   • Samsung approves claim: $35,200 (disputed $1,550 on new product incentive)
   • Dispute resolution: MegaDistro provides additional documentation
   • Final settlement: $36,750 as originally claimed
   • Expected Result: Full rebate received and recorded in accounting

Scenario B: Strategic Vendor Partnership Development

Objective: Develop strategic partnerships with key vendors for mutual growth

Step-by-Step Workflow:

1. Vendor Analysis and Ranking

   • Navigate to Analytics → Vendor Performance Dashboard
   • Top 10 vendors by revenue contribution:
     • Samsung: $8.5M (15% growth, 18% margin)
     • Apple: $6.2M (8% growth, 12% margin)
     • Sony: $4.8M (22% growth, 20% margin)
   • Identify Sony as partnership expansion opportunity

2. Partnership Proposal Development

   • Propose exclusive territory rights for new product categories
   • Commit to minimum purchase volumes: $6M annually
   • Request enhanced support:
     • Dedicated account manager
     • Priority allocation during shortages
     • Extended payment terms (Net 45)
     • Co-op marketing funding: $50k annually

3. Partnership Implementation

   • Sony accepts partnership proposal
   • Benefits received:
     • 2% additional margin on core products
     • Exclusive rights to professional audio line
     • Priority support during high-demand periods
     • Quarterly business reviews with Sony executives

4. Partnership Performance Monitoring

   • Monthly KPIs established:
     • Revenue growth: Target +25% YoY
     • Market share: Target 15% in professional audio
     • Customer satisfaction: Target >4.5/5 for Sony products
     • Inventory turns: Target 8x annually for Sony inventory
   • Expected Result: Mutual growth and strengthened strategic relationship

📊 Distribution Analytics & Intelligence

B2B Performance Dashboard

Key Distribution Metrics:

🎯 Distribution Success Metrics & ROI

Expected Business Outcomes

Year 1 Financial Impact:

• Revenue Growth: 15-20% through improved customer service
• Margin Improvement: 2-3% through better pricing and rebate management
• Working Capital: 12-18% improvement through inventory optimization
• Operating Costs: 8-12% reduction through automation and efficiency

Operational Improvements:

• Order Accuracy: From 94% to 99.2%
• Fulfillment Speed: 35% faster order processing
• Customer Satisfaction: +1.8 points improvement
• Credit Losses: 45% reduction through better credit management

Industry Benchmark Achievement

Customer Service Excellence:

• Order fill rate: >98% (industry avg: 92%)
• On-time delivery: >96% (industry avg: 89%)
• Order accuracy: >99% (industry avg: 94%)
• Customer retention: >92% (industry avg: 85%)

Financial Performance:

• Gross margin: 22-25% vs 18% industry average
• DSO: <35 days vs 45 day industry average
• Inventory turns: 12x vs 8x industry average
• Working capital efficiency: +25% vs industry benchmark

Competitive Advantages:

• Real-time Integration: Seamless vendor and customer connectivity
• AI-Driven Insights: Predictive analytics for demand and pricing
• Scalable Operations: Handle 3x growth with same operational overhead
• Risk Management: Advanced credit and supply chain risk mitigation

🚀 Implementation Roadmap

Phase 1: Foundation (Weeks 1-4)

• Customer and Vendor Setup: Master data migration and validation
• Pricing Configuration: Multi-tier pricing and customer-specific rates
• Credit Management: Credit limits, terms, and approval workflows
• Basic B2B Portal: Customer self-service ordering

Phase 2: Advanced Features (Weeks 5-8)

• EDI Integration: Automate large customer order processing
• Drop-Ship Workflows: Vendor coordination and tracking
• Logistics Optimization: Route planning and shipping integration
• Rebate Management: Vendor rebate tracking and claims processing

Phase 3: Analytics & Optimization (Weeks 9-12)

• Performance Dashboards: Customer and vendor analytics
• Predictive Analytics: Demand forecasting and inventory optimization
• Advanced Reporting: Custom KPIs and business intelligence
• Process Optimization: Workflow refinement and automation enhancement

📞 Get Started with Distribution Excellence

Demo Environment Access

Specialized Distribution Support

Success Stories

“BigLedger transformed our B2B operations. We achieved 25% revenue growth and 40% improvement in customer satisfaction within the first year.” - Regional Electronics Distributor, $45M Revenue

“The multi-tier pricing and credit management features alone saved us $200k annually in improved margins and reduced credit losses.” - Industrial Equipment Distributor, $85M Revenue

📚 Continue Learning

Related Resources

• Advanced B2B Integration: EDI and API Documentation
• Financial Management: Accounting and Credit Control Guide
• Inventory Optimization: Warehouse Management Best Practices
• Customer Portal Setup: B2B Portal Configuration Guide