According to Sage, a business solutions company, digital disruption has changed how wholesalers build and maintain customer relationships. Wholesalers today cater to a customer base that purchases goods across channels and expects personalization at competitive prices. They also expect their orders to be fulfilled in extraordinarily short times. To set themselves apart, wholesale companies must rethink their processes and use data to beat the competition.
The disadvantage of legacy systems
Challenges from the new data economy have made traditional distribution channels obsolete. Wholesale companies who still choose to employ legacy systems such as spreadsheets and databases cannot answer pertinent questions like - how many units were shipped in a particular month, which was the most popular items, or which warehouses recorded the most turnover.
Relying on legacy systems will also mean a constant balancing act to match demand to stock levels, resulting in lost sales or having too much cash committed in excess inventory. All these scenarios are disastrous and outdated. These can be overcome by digital solutions that streamline the operations and give greater transparency to stock levels and customer preferences.
Necessary steps to stand out from the competition
Identify value add opportunities - Wholesalers can offer product customization and in-house repair of goods. They can also provide product installation and component assembly for customers looking for more ready-assembled goods and do not want the hassle of hiring another professional to complete the last steps after delivery. They may also consider offering consulting, training and education for customers who require it through virtual training. These new services are made possible through technology.
Becoming a real-time distributor - With digital transformation, the element of a 24/7 self-service experience is possible. Customers can place orders and make adjustments at their convenience. Automated alerts will inform wholesalers when these orders have been made, allowing them to better plan and forecast demands.
Innovate with inventory - Digital transformation allows for in-transit visibility. Any delay would trigger an immediate alert. They can also use historic sale patterns to predict accurately when they need to build up or scale down inventory, depending on demand, allowing businesses to make commitments based on supply as they know precisely when stock is available.
Read more here: https://www.sage.com/en-us/blog/distributors-achieve-digital-transformation/
Have any queries about how your wholesale organization can benefit from Zooloo's digital solutions? Contact us at sales@zooloo.asia.
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- Read about The Digital Transformation Journey
- Learn more about our “Digital Backbones”
- Learn more from our eBook series on Digital Transformation for Wholesale Trade
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