in: Distribution, Company News
The wholesale distribution industry represents an enormous segment of business with over $10 trillion USD in global annual sales. With so many vendors competing for a slice of this big pie, it’s no wonder that wholesale distribution companies seek any competitive advantage they can get.
Changing global circumstances and pressures are also forcing wholesale distributors to rethink how they conduct business. To remain competitive, many wholesalers are embracing the following business practices.
Omnichannel Experience
The pandemic forced many wholesale distribution companies to reconsider their approach to e-commerce. Those that once believed that an e-commerce model wasn’t possible found innovative ways to add an ecommerce portal to their business.
In doing so, however, many experienced channel disconnects that had to be solved. Creating a consistent omnichannel experience is vital to ensuring that customers experience the same level of service both in person and online. Wholesalers must embrace an omnichannel approach to business to remain competitive.
Integrated Workflows
Wholesale distribution networks are increasingly global networks. Many have warehouses and supply depots across vast areas to serve their growing markets. To manage their businesses effectively, they must migrate from independent systems to integrated workflows.
Integrated workflows rely upon the exchange of data among computers, systems, and platforms to ensure that timely and accurate information is available. Cloud computing, cloud ERP, and similar systems ensure that no matter where a business has its locations, all the information moving through the company is the same, and people in any location can access the same data.
Lastly, integrated workflows produce data that can be harnessed and utilized for better insights into the company’s activities.
Better data visibility ensures that wholesale distributors can make more informed decisions. Customers can be kept apprised of any supply chain issues, order updates, or shipping delays. It ensures clear communication and improves a company’s competitive advantage.
Local Focus, Global Awareness
Many wholesale distribution companies have aggressively pursued a global strategy. While this may be an effective approach for some, others have found that a local focus—but global awareness—has given them a strong competitive advantage.
What is a local focus? It means working hard to build a reputation locally as a business partner companies can trust. It means developing shipping networks, transportation hubs, and a local customer base.
Global awareness, on the other hand, ensures that even if a business is locally focused, they are ready to accept business from anywhere in the world. This enables them to expand as needed, but to focus on what matters the most, and where their greatest opportunities lie.
The Cloud Software Advantage
No matter how wholesale distribution companies approach their market, cloud software enables them to achieve these benefits and more. Whether locally focused or globally based, the data and ability to integrate into an omnichannel experience ensure that distributors who embrace technology remain ahead of their competition.
Mindover Software
Mindover Software can help you find the right ERP for your business. We are your business technology partner. Contact us or call 512-990-3994.
