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The wholesale distribution industry is experiencing a tremendous technology change, somewhat disrupting the industry. Like retail customers, wholesale customers now prefer to buy online because many of the products wholesalers stock are in the online marketplace on sites like Alibaba, eBay, and Costco. Besides, who doesn’t love the convenience that comes with shopping online?
The call for convenience and efficiency has also seen manufacturers automate operations to simplify their complex processes.
The wholesale industry is also catching up with the other sectors thanks to advancements in B2B technologies like the cloud and AI. Integrating these technologies into the wholesaling businesses has led to the most explosive changes in the industry.
Some ways technology is transforming the wholesale distribution industry include:
The modern consumer’s buying behavior is changing how businesses run their operations. The customer’s call for speed, accuracy, and efficiency has forced businesses to adopt new strategies to cope with these demands. As a result, companies have integrated technology solutions that reduce fulfillment errors and automate end-to-end processes.
Some changes that have come with automating processes in the wholesale distribution business are:
Wholesalers are embracing inventory and order management software to automate their workflow. The tool reduces the mistake on orders and increases efficiency by creating quicker turnaround times.
Businesses are also using wireless technology to track and monitor the movement of individual items tagged in the warehouse.
Automated sensors and tracking innovations help businesses monitor their shipments and business logistics. As a result, you’ll be able to make informed decisions about staffing and planning.
Mobile apps and other connected devices help businesses interpret the data being generated. The insights these tools give help wholesalers discover the inefficiencies in their operational procedures, reducing costly mistakes.
Automating processes doesn’t mean wholesalers are replacing humans with machines in totality. These technologies are only freeing the wholesaler’s time, allowing them to focus on other facets of the business that lead to growth.
The internet technology has allowed all kinds of businesses, including whole distribution, to operate online. However, the technology has also exposed wholesale businesses to cyber-attacks and data breaches. These attacks are carried out by criminals from within or without your organization and include malware, phishing, and denial of service attacks.
Cyber insecurity exposes businesses to reputation loss, especially from the bad press. When the world knows that your data was stolen, the market will not feel safe trading with you. It also disrupts the supply chain and does long-term damage to your business. Also, recovery from a cybersecurity
breach is also expensive and exhausting.
Wholesale businesses can address these security threats by using cloud security products. Cloud security is where companies use cloud computing platforms to protect their online data from theft, deletion, and leakage.
A business that shifts to a cloud system keeps its technological functions but will no longer need to maintain them internally. Therefore, these businesses save on the cost by avoiding the upfront cost and complexities of owning and maintaining their IT infrastructure.
Businesses that rely on a shared infrastructure that cloud computing
services offer enjoy fast and frequent automatic upgrades at a lower cost. With Cloud computing, your business will get an insight into fulfilling the customers’ changing needs and improving efficiency.
Some ways this technology transforms wholesale distribution include:
Cloud computing establishes a system that provides a centralized system for information about inventory. So, it helps a wholesaler keep the stock levels in check to ensure they don’t experience stock out or expired goods.
It also helps wholesale businesses reach new markets by accurately nurturing leads. Businesses can use the tool to measure ROI in real-time and monitor results with data metrics, expanding opportunities for marketing automation.
Cloud-based systems allow businesses to track leads and analyze productivity by automating processes.
Besides, it develops flexible pricing schemes, updates prices, and segments pricing by customer.
Cloud computing integrates the business’s data and core system in all its departments to have a single view. Hence, businesses can market effectively by tailor-making strategies based on a customer’s behavior after tracking them.
Artificial intelligence automates several business processes, increasing their efficiency. As a result, businesses increase sales, boost productivity and grow profitability.
Some ways AI technologies are transforming wholesale businesses include:
Using machines in order filling improves the speed at which tasks are completed. This allows the wholesaler to expand their order fulfillment capabilities, reduce cost, and improve efficiency.
AI improves the wholesaler’s ability to meet the customer’s needs through tools like virtual assistants and chatbot
. The technology can interact with customers and assist them using the stored data and documentation. A wholesaler’s customers will thus have 24/7 customer services without a person.
Under AI, there’s the internet of things, objects containing sensors, and electronic components that collect data. The collected data is important in improving customer service and internal operations. Wholesalers can use these sensors to automate shipping, warehousing, and equipment monitoring processes.
AI also creates greater flexibility and responsiveness to an indeterminable future. So businesses can forecast the future using historical, current, and predictive data. Wholesale distributors will, therefore, use this information to make an informed decision.
AI tools profile a customer based on their buying behavior. It influences the customer’s buying decision by suggesting more quickly and effectively.
The AI-powered cross-sell and upsell recommendations engine is also essential in helping wholesalers grow wallet shares across their channels.
AI-based technology pricing software determines the optimal price for an item based on the historical sales, lost sales, and other data points.
AI can use sales records to identify successful conversations and tactics business coaches can use to teach their team to replicate.
Additive manufacturing
is the industrial production name for 3D printing. The computer-controlled process creates three-dimensional objects by depositing material in layers, one at a time. 3D printing applies to any industry that needs to create reproduction models or machine parts.
Wholesale distributors use the 3D concept to reduce the warehouse space by developing a mobile manufacturing hub. These businesses produce goods inside a mobile hub near the end-user to speed delivery. The 3D printing also ensures there is a continuous supply of manufactured goods.
The 3D printing concept can be used in wholesale business to service parts for inventory items for the automotive, marine, and aerospace sectors. Wholesalers can print out replacement parts used in these sectors where they are needed instead of buying and stocking.
3D scanning is used today in applications like Computer-Aided Designs in the aerospace and automotive industries. The scanning produces diagrams and designs used in additive and subtractive manufacturing.
3D scanning technology helps wholesalers create 3D images of their products that are unique and clear to customers. The images are placed on their business’s website to allow for placing an order.
Wholesalers also use the manufacturer’s 3D scanned digital model or physical parts of slow-moving items in their warehouse instead of the product itself. This makes sure that they only create inventory when there are customer orders.
Every wholesale business needs a warehouse management system, like Erply POS system
, to help with inventory management: keeping stock costs low, ensuring there are no expired goods, and sending a notification to suppliers when reorder levels has been reached to avoid missed orders.
The Erply POS system also reduces the number of errors made, which means you will save money and customers will be happier.
It allows you to easily make purchase orders, sales order, inventory transfers, and stock taking.
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There’s a new dawn in the wholesale distribution industry. The traders are developing strategies and technologies that help them improve their operations and meet customers’ demands. So, it is time wholesalers learn how to integrate these technological trends into their businesses to enjoy the same benefits.
Those who won’t embrace these new technologies will be left behind.