Why Wipfli?
Wipfli leverages our decades of serving distributors to understand your business and the solutions that can transform it.
Our wide range of services are all delivered with the personal attention of local support, backed by the resources of a national firm. Whether you’re navigating tariffs, facing margin pressures or planning for growth, we take the time to get to know your operations and tailor guidance to meet your unique challenges.
We’re ready to help you drive performance improvement and stay resilient despite rising costs and uncertainty.
Gain confidence in your financial reporting with Wipfli’s assurance services. From financial statement reviews to specialized inventory audits, we help ensure accuracy, compliance and transparency across your operations. We also deliver insights beyond the numbers so you can make informed business decisions.
Wipfli’s tax services help you stay compliant while optimizing your tax position for growth. Our team provides comprehensive tax planning and compliance, including cost segregation, state and local tax guidance and international tax strategies to support your global operations.
Transform your operations with technology built to streamline processes and position your business for growth. Wipfli’s digital services help you create a secure IT ecosystem that drives efficiency and insight, including support for cybersecurity, AI strategy, automation, CRM for distributors and modern cloud solutions, such as NetSuite.
Wipfli’s organizational performance team helps you improve operational efficiency, strengthen leadership and build agile strategies that drive results. Our support for strategic planning, leadership development, operations and process improvement can help you adapt and thrive in any business environment.
Wipfli provides the specialized, experienced talent you need without the overhead of full-time staff. We offer comprehensive services, including back-office and C-suite talent for your accounting, HR, technology and operations teams. Our flexible, scalable services help you stay focused on growth while we support the back-office functions that keep your business running smoothly.
Wipfli gives you critical insights for informed decisions and successful transaction outcomes. Our services cover the full deal life cycle, including buy-side and sell-side advisory, due diligence, quality of earnings and integration planning. Whether you’re preparing for private equity investment or strategic acquisitions, we’re ready to help you evaluate opportunities, mitigate risks and maximize value at every stage.
Wipfli can help you maximize wealth and mitigate taxes with private client services that connect your personal and business finances with your goals. With support for estate and gift planning, wealth management and business transition, we can help you preserve your legacy.
Wipfli’s proactive risk management support can help you identify vulnerabilities, strengthen internal controls and manage compliance. From enterprise risk assessments and cybersecurity reviews to fraud prevention and internal audit support, we deliver practical solutions that safeguard your operations and build resilience.
Reach out to our team
Let’s talk about how we can help your wholesale distribution business become more efficient, resilient and profitable. Connect with our industry advisory team to share your top challenges and develop a plan to solve them.
Insights and resources
ARTICLE
The value of inventory optimization in manufacturing
The business landscape for manufacturers and distributors has changed dramatically over the last few years. Supply chain challenges stemming from tariffs, geopolitical instability and other issues have made inventory management more difficult. Difficulty obtaining materials and other inputs can diminish your ability to deliver products, which leads to issues with working capital. Manufacturers may need to consider internal changes to free up capital, including inventory optimization. Keep reading to learn the specifics about inventory optimization and how it can have a meaningful impact on working capital. What is inventory optimization? Inventory optimization is the process of determining and maintaining the right quantity, mix and location of inventory to meet customer demand while minimizing costs and maximizing operational efficiency. For manufacturers and distributors, this means balancing two competing risks: Carrying too much inventory, which ties up working capital and drives up carrying costs Carrying too little, which leads to stockouts, production delays and missed customer orders The core objectives of inventory optimization in manufacturing and distribution include: Reducing excess and obsolete stock Improving demand forecasting accuracy Aligning replenishment cycles with actual consumption patterns Building supply chain resilience without overstocking When these objectives are met together, businesses gain a sharper view of their cash position, more predictable operations and the ability to respond to market shifts without relying on emergency financing to cover preventable gaps. What are the benefits of inventory optimization in manufacturing? A well-executed inventory optimization plan delivers measurable financial and operational improvements across the business. Key benefits include: Improved cash flow and working capital: Reducing excess inventory releases cash that can be reinvested in growth, operations or debt reduction rather than sitting dormant on a shelf. Lower carrying costs: Less inventory on hand means reduced expenses related to storage, insurance, handling and depreciation. Fewer stockouts and production disruptions: Better demand visibility helps ensure the right materials are available when needed, reducing costly production delays and unplanned purchasing. Stronger supplier relationships: Sharing demand data with suppliers supports more predictable lead times and creates leverage for better pricing and priority fulfillment. Reduced obsolescence and write-offs: Tighter inventory controls reduce the risk of holding items that can no longer be sold or used, protecting margin and financial reporting integrity. Better customer fulfillment: Optimized stock levels improve fill rates and on-time delivery, which both directly affect customer satisfaction and long-term retention. Cleaner financial reporting: Accurate, real-time inventory data improves the reliability of financial statements and simplifies audit and lender reporting. The importance of working capital management Not all businesses are experiencing working capital gaps. According to the Working Capital Management Report issued by the National Center for the Middle Market , 59% of participants do not at all experience issues with working capital and only 36% have issues more than twice per year. For those facing regular issues, the challenge is typically solved by tapping lines of credit or taking additional business loans. Businesses need to carefully review practices, including inventory management, to identify opportunities for optimization. Even relatively minor adjustments to inventory can result in significant payoffs. Here’s an example: Consider a mid-market manufacturer of consumer goods that was growing rapidly but struggling to consistently fulfill orders. The company relied on disparate modules, which required duplicate data entry and management. This created slow and error-prone processes and made it difficult to track and understand inventory levels. As a result, the business couldn’t determine which inventory was contributing to margin and which was quietly eroding it. Leadership was leaning on a line of credit to cover cash shortfalls that better data could have prevented. After implementing an integrated ERP solution and redesigning its inventory tracking processes, the company increased warehouse efficiency and filled significantly more orders than the previous year. Cash that had been locked up in excess and misallocated stock was freed up, reducing the need for short-term borrowing and improving financial visibility across the organization. This pattern is not unique. Distributors face similar pressure. Common distribution pain points include inventory spread across channels with limited visibility and accuracy, and fulfillment speed at risk due to labor shortages and process inefficiencies. These conditions force reactive purchasing decisions, inflate safety stock levels and create carrying costs that compound over time. Inventory management best practices for manufacturers Several optimization steps can be followed to improve inventory management. The best practices outlined below apply to businesses across multiple industries. Establish inventory KPIs These key performance indicators (KPIs) help a business measure performance toward inventory management goals. They are especially useful tools for businesses seeking to improve in one or more areas. Common inventory KPIs include inventory carrying costs, inventory write-offs or write-downs, rate of inventory turnover, cycle time and fill rate. By regularly evaluating processes in these areas, it becomes easy to identify trouble areas where changes are needed. Reduce inventory Most businesses have between 25% to 30% of working capital tied up in inventory. For this reason, it is important to find the point where the lowest amount of inventory can be maintained without being understocked. Common inventory reduction methods include: Lowering lead times: This can be accomplished by tracking existing lead times, sharing sales data with suppliers and reducing minimum order quantities. Liquidating obsolete inventory: This can be accomplished by offering customers discounts or positioning it as a tax write-off. Improving inventory forecasting: By implementing real-time tracking and reporting, integrated communication and large-volume inventory management tools, businesses can make more reliable forecasts. Optimize inventory turnover Inventory turnover refers to the number of times inventory is sold or used in a given period. This will help management understand the market demand for products and the amount of old or obsolete inventory being carried. Common ways to increase inventory turnover include testing new pricing strategies, getting rid of old inventory, improving demand forecasting and streamlining the supply chain to reduce delivery costs and in-transit times. Carry safety inventory This is a small amount of select inventory designed to protect from sudden spikes in market demand and lead times. Without this reserve inventory, a business could be exposed to a loss of revenue, customers and market share if unable to fulfill orders. When properly used, it manages against risks of unexpected demand and acts as a buffer for longer-than-expected lead times. Read more 2026 distribution industry outlook: To overcome pricing pressures and uncertainty, go digital Cybersecurity in manufacturing: Risks and best practices Managing margin pressure in manufacturing through pricing strategy and cost visibility
ARTICLE
Section 122 tariffs: 10% now, 15% may be next
Manufacturers, distributors and the importing community remain on standby as senior Trump administration officials indicate that they intend to increase the Section 122 tariff rate from 10% to the maximum allowed 15%. On February 20, President Trump announced he would invoke tariffs under Section 122 of the Trade Act of 1974 as a “balance of payments” matter to replace the global and sweeping International Emergency Economic Powers Act (IEEPA) tariffs that just hours earlier the U.S. Supreme Court had ruled illegal. Why did Section 122 replace IEEPA tariffs? Following the Trump administration’s removal of the IEEPA tariffs at midnight ET on February 24, the U.S. immediately implemented 10% Section 122 tariffs starting at 12:01 a.m. that same morning. These Section 122 tariffs, which stand at 10% but are expected to increase to 15% , are scheduled to expire at 12:01 a.m. on July 24, 2026, if not halted earlier through court challenges. The potential rate change, combined with court challenges and an expected expansion of Section 301 tariffs this summer, will require manufacturers and distributors to reexamine the impact of the changing tariff landscape on their operations. In addition to current tariffs imposed under section 232 and section 301, the Trump administration has announced additional investigations under section 232 and section 301, targeting many different U.S. trading partners and goods. It’s expected that the administration will expedite the Section 301 investigation processes in particular, accelerating the imposing of tariffs as the Section 122 tariffs expire in late July. How do importers claim tariff refunds? If you are the importer of record and have paid IEEPA tariffs since they were imposed in February 2025, you are eligible for refunds of those tariffs. Here are some key points pertaining to the refund process: Use your ACE (automated commercial environment) account to begin the refund process. Within the ACE account, your business will need to create a CAPE (consolidated administration and processing of entries) system. At the end of March, Customs and Border Patrol (CBP) provided an update to the Court of International Trade (CIT) noting that they were more than halfway through the process of finalizing the claim portal, the review/liquidation process, refunds and mass processing. Approximately two-thirds of refunds will be granted during phase one of the refund process. This will apply to all unliquidated IEEPA tariffs paid and IEEPA entries that remain within the 90-day voluntary reliquidation window. For all entries that have been fully liquidated, the CIT has changed its original ruling and will now also manage those in the CAPE system, but in subsequent phases. Issues for businesses that are not the importer of record If you are not the importer of record and, therefore, do not have all or a portion of IEEPA tariffs paid tracked in the ACE system, but you paid IEEPA tariffs to a customer or supplier, keep in mind these considerations: You should still consider seeking refunds, but the process will be far less straightforward. If you worked with a supplier to cover a portion of IEEPA specific tariff costs they paid, you need to review and document the specific IEEPA tariffs you paid and determine what the total tariffs paid were. Note that when calculating total IEEPA tariffs paid, you must exclude any tariffs you took on from your supplier for Section 232 or Section 301 tariffs. Your supplier is likely not obligated to refund you the IEEPA tariffs paid, even after they get refunded via the CAPE portal as the importer of record. As a result, it’s important to talk to your supplier and understand their plan for refunds. Have documentation ready on the IEEPA tariffs you paid to help ensure you are refunded what you are owed after your supplier has been refunded. Read more IEEPA tariff refunds: The recent CIT ruling and Section 122 updates Supreme Court IEEPA tariff ruling released Protecting your manufacturing business amidst tariff changes
E BOOK
Could an ERP help your whole business work better?
Find out how an ERP can make your organization faster, smarter and more efficient Aging or legacy systems slow down your team and make it harder for your organization to thrive. Could a modern, cloud-based enterprise resourcing planning (ERP) system change that? An ERP is a platform that serves as a financial and operational hub for your business. In this e-book, you’ll learn how organizations like yours are implementing modern ERP systems to solve crucial operational challenges, including: Automating cumbersome manual processes Delivering real-time financial visibility to leaders Integrating data from peripheral systems Freeing team members to focus on higher-value work Read the full e-book to learn more.
LET'S CONNECT
Discover how our distribution consulting team helps you look past today’s problems to build the resilience you need to thrive in tomorrow’s market.
