Distributors of all sizes face many of the same global challenges, including rapidly changing customer demand, complex product inventories, and supply chain volatility.
In today’s economy, a significant portion of wholesale distributors’ revenue will come from customer-centric solutions that transform their business and differentiate them from their competitors in the marketplace. These solutions include value-added services, unlimited inventory with secure logistics, project-based collaboration, and automation to refocus employees on high-priority tasks. With these services and business models; distributors can secure their place in the supply chain and position themselves for the future.
To get started on this path, distributors need to optimize their current processes and adapt services to meet the needs of their customers. Distributors must leverage an intelligent Digital Core to transform their business. They will use business models that differentiate them in the marketplace, support their customers with real-time response and project services, and empower employees to focus on their customers’ brand and product experiences.
We have identified FOUR strategic priorities necessary for wholesale distribution companies to transform their business.
In the past, wholesale distributors served their customers by selling in bulk and providing a standard product catalog. But in today’s marketplace, that’s no longer enough. Customers have many new sources for purchasing the same products at attractive prices and shipping options. To stay relevant, distributors need to provide something more: a service around the product that online competitors can’t.
Distributors have always been focused on customer service, but today, customers are placing greater demands on businesses. They are relying on distributors to provide a wider variety of products from multiple sources and they want shorter delivery times, with the ability to ship products directly to the job site. Wholesale distributors need to respond to these challenges to stay competitive and maintain customer loyalty.
With so many choices in the market, distributors need to establish themselves as trusted partners. One way to do this is by working closely with customers to not only understand their needs but also collaborate closely on larger projects. Through this relationship, distributors can plan and deliver the products and services needed throughout the project lifecycle. In this way, they become more than just suppliers; they become a critical part of their customers’ success.
Every company focuses on employee productivity. But over time, processes can become outdated or broken, and employees spend a lot of time trying to find workarounds and performing manual tasks. Distributors need to introduce smart technology and automation into their organization, so that their work will be more efficient.
Start with reimagining your business together with your customers. Then build a path for even more optimization and intelligent automation to simplify your business and free up resources to invest in even more digital transformation programs and find new business models and revenue streams.
SAP Business One Intelligent Framework is a business application that uses intelligent technology and can be extended on a digital platform. This product enables more innovative next-generation business processes.
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