Distribution may appear to the untrained eye to be a straightforward industry, but in all reality it is evolving more quickly than ever before. From increased competition and changing business models to a barrage of new, innovative technologies, the distributors way do business is starkly and fundamentally different than it was even five years ago. In an age with such pronounced structural change and competitive pressures to risk not changing is to risk failing.
Here are the most important trends we see for wholesale distributors in 2017.
Your Target Market is Online, and You Should be Too
The modern consumer across all parts of the supply chain management turns to the internet as the ultimate source of knowledge for purchase decisions – thus, a strong online presence is crucial for continued business success, whether in the world of B2B or B2C commerce. Ecommerce continues to be a key topic and distributors need to be ahead of it if they want to remain relevant and fresh in the face of major industry changes.
Competition is Everywhere and They are Leaner, Meaner and More Tech-savvy Than Ever
In today’s ERP wholesale distribution landscape, it is only getting harder to differentiate. With the ever growing number of competitors, how do distributors position themselves as unique and stay a step ahead? What trends are affecting our industry? Assessing and reassessing these questions on a regular basis is absolutely essential for continued success in the constantly evolving world of wholesale distribution software.
Business Models are Rapidly Changing
Distributors are searching new ways of going to market. Between the internet’s pervasiveness among modern consumers and the constant flood of technological advances in the business world, companies have to fundamentally change the way they operate in order to hold up against their competitors.
Employee Productivity is Critical for Success
Tech upgrades – although very important – are useless without the employees to act on the efficiencies they bring. Employee productivity for the modern distributor is key to success long term; much of that productivity can be facilitated with new technologies. Warehouse automation, CRM, ecommerce, pricing and analytics are just some of the updates modern distributors implement to streamline their processes while increasing employee productivity to improve the output of their operations.
These things may not sound like much, but they are completely altering the face of the wholesale distribution industry. Even just a year down the line, distributors may look even different. With that in mind, then it begs the question – if change is imminent, then what are you waiting for?
For more on how NetSuite can help wholesale distributors, NetSuite Expert specializes in ERP implementation services for wholesale distribution system .