Digital distribution is the way forward
Digital distribution has revolutionised the way in which businesses manage their inventory, bringing in efficiency and improved coordination between retailers and suppliers
The wholesale distribution industry has undergone a significant transformation in recent years, driven by the rise of digital technologies and platforms. This has enabled better supply chain management for wholesalers, as well as new opportunities for growth and expansion.
Digital distribution has revolutionised the way the wholesale industry operates. It has enabled the industry to move away from traditional ways of selling and distributing goods, toward a more efficient model that removes friction and prioritises speed and efficiency of ‘go-to-market’ models. This has also had a profound impact on the way businesses operate, as well as the way the traditional trade purchases goods.
The rise of digital transformation in the wholesale distribution industry has been a boom for businesses and consumers alike. It has made it possible for suppliers to reach a larger number of retailers more easily, quickly and efficiently, than ever before. This, in turn, has led to an increase in competition among suppliers, as well as an increase in the number of customer enquiries and orders that need to be processed.
In addition, digital distribution technologies and platforms have made it possible for retailers to access a larger range of products, to order anytime from anywhere, track their orders more efficiently and receive real-time updates on the status of their deliveries. This has led to a need for improved communication and coordination between suppliers and retailers.
The traditional inventory management model was based on the premise that businesses needed to maintain a certain level of stock to meet customer demand. This often resulted in businesses stockpiling inventory, which tied up significant working capital. In addition, the process of physically managing inventory was often inefficient and prone to errors. Digital distribution has revolutionised the way in which businesses manage their inventory. By digitising the inventory management process, businesses can gain real-time visibility into their stock levels. This allows them to make more informed decisions about the inventory status they need to maintain, ultimately resulting in improved efficiency and lower costs. In addition, digitising the inventory management process has enabled better business supply chain management. Businesses can identify bottlenecks and optimise their operations by having visibility into the entire supply chain. This results in a dramatically improved, more optimised supply chain that is better able to meet customer demand. Another significant impact of digital distribution technologies and platforms on the wholesale industry has been the way that they have changed the relationship between suppliers and customers over the years.
Wholesalers can benefit greatly from harnessing the power of a digital distribution platform. By utilising a digital distribution platform, wholesalers can keep their supply chain running smoothly and efficiently. They can access a wealth of data that can be used to optimise their supply chain. By using data from a digital platform, wholesalers can identify trends and patterns that can help them improve their operations significantly. By automating the entire process, it also reduces the scope of manual errors and delays for wholesalers, in addition to saving costs.
In the early days of digitisation, the focus was on compliance, quality and security standards. However, as digital distribution expands its footprint, those elements have been simplified, and the emphasis has shifted to the identification of new business models and the need for more flexible solutions.