The digital economy is changing the landscape for distribution firms. New business models, increased competition, and the challenge to keep the pace all present increased demands.
recently surveyed wholesale distributors about the impact of the digital economy on their businesses. They found that nearly 90% of respondents acknowledged “more challenging and complex fulfillment requirements” due to the demand and impact of eCommerce, multichannel or cross-channel fulfillment.
So how can your distribution business not only survive but thrive in the new digital economy?
The challenges
With the earthquake created by eCommerce and the digital economy, successful distribution companies have had to change the way they look at their businesses as well as the way they operate. There are new order channels, new fulfillment initiatives, and even new ways of looking at inventory and warehousing.
Citing the innovation of “B2B and B2C convergence,” in its report, Wholesale Distribution: Digital Economy Impact and Survival, the Aberdeen Group finds that today’s distributors are now overseeing not only their B2B business but also their e-commerce sites and even their customers’ e-commerce businesses. This creates challenges but also opens new paths to profitability for those who can adapt successfully.
Customers, aware of their choices, have developed greater expectations. They know that if you can’t deliver faster service, sometimes even next-day, there is a competitor out there somewhere who will. Meeting these expectations requires more efficient warehouse processes and improved labor efficiency and productivity through up-to-date management software.
Are you ready to compete?
Competition from traditional sources or from power players like Amazon requires that you keep up or perish. To keep up, you need to evolve with your industry. Taking the right steps to transform your business model today can pay off in the form of satisfied and loyal customers in the future. The tactics and strategies you’ll need to succeed were recently outlined in a new report from Aberdeen Group.
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By CAL Business Solutions, Acumatica and Micorsoft Dynamics GP Partner,
