The world of wholesale distribution has undergone major changes in recent years. Thanks to the advent of game-changing technologies, the industry is no longer what it was. These technologies have disrupted the market and, in their wake, caused changes that have positively impacted the industry. And, as with any major change, the affected parties have been forced to adapt, both in terms of technology and business models.
Distributors are keenly aware that as we move into a more purely digital age the need to keep up with trends and technology is paramount to your success in the future. This post will examine a few of the trends that will be affecting the industry in the coming months and years.
Smart Analytics
Smart analytics is one technology that has transformed the distribution industry. It brings transformative efficiencies to business operations, and as a result, savings. By analyzing data with BI tools, distributors can identify their most profitable products, lead times, and shipping locations. This insight then enables optimization in logistical distribution, maximizing efficiency and revenue. Besides, the data can aid in forecasting demand and tailoring marketing efforts to specific customers, increasing their engagement and driving higher sales.
Dynamic Pricing
Dynamic pricing is another game-changer in the wholesale distribution industry. Instead of using fixed pricing models, dynamic pricing computes per-unit prices based on supply and demand metrics of the moment. It can lead to efficiency savings and increased profits when implemented effectively. A combination of factors such as high-demand locations, slow-moving stock, and underutilized warehouse space can all be addressed through smart dynamic pricing. This results in more significant sales volumes and increased profitability. By analyzing data and customer behavior, distributors can hone their pricing strategies.
Warehouse Optimization
Streamlining warehouse operations to save time is a transformative element in the optimization process. New and sophisticated warehouse management software systems automate key functions such as picking, packing, and shipping. AI and barcode scanning systems now align the data associated with a warehouse’s inbound and outbound movement, creating greater efficiency, and reducing the need for excess labor hours. It leaves a warehouse leaner and more efficient, with bigger profits and the possibility of expedited distribution timelines.
Mobile and Remote Working
The growing prevalence of telecommuting has arguably impacted the work culture more than any technology in recent years. The use of cloud-based tools and applications that enable remote work and real-time collaborations has revolutionized operations in diverse industries, including wholesale distribution. Storing data and accessing it anywhere and anytime, is simpler the longer the enterprise operates. Increased connectivity and the use of AI and machine learning make it even more efficient.
In recent years, revolutionary technologies have brought about a remarkable transformation in the distribution industry. Smart analytics, dynamic pricing, and warehouse optimization have led to more efficient business operations for distributors while generating exponential profitability. The ability to access data anywhere at any time has enabled remote work, making it possible for employees to work more efficiently and for distributors to operate lean and agile companies. These disruptive technologies are expected only to become more sophisticated and to continue revolutionizing various industries.
For more than 25 years Rob has helped Distributors improve profits by helping them architect a scalable, modern operation with leading ERP software solutions.