How winning Wholesale Distributors are using technology in 2019

Australian wholesale distribution companies are innovating through technology to gain a competitive edge. The companies at the top of their game use technologies in smart ways to achieve more efficient warehouse management, optimum inventory levels and satisfied customers.

This article will take a closer look at how successful small and midsize organisations in the wholesale distribution industry are using disruptive technologies to their advantage.

Competition is high for Aussie wholesale distributors

Whether the industry is food and beverage, medical and pharmaceutical, electronics, homewares or chemicals, all wholesalers operate in an evolving digital economy in which technologies like robotics, big data, IoT, VR, sensors, and drones are becoming business-critical tools.

Being the logistical lynchpin that connects manufacturing and consumer markets comes with unique challenges. Many of these are focused around how to organise, track and physically move goods in a timely and effective way—but it goes much deeper.

Wholesalers need to manage the costs and timeframes of suppliers, as well as stay abreast of the consumer trends that affect their biggest clients in retail and other channels. As an intermediary, wholesalers must pay special attention to their customers’ objectives to demonstrate ongoing value.

To do all this well, operating a digital business is a must. For mature and growing companies, the technology stack needs to include systems that streamline day-to-day operations, such as Enterprise Resource Planning (ERP) software.

Anticipating customer’s needs to stay ahead

The increasing focus on targeted marketing, automation, e-commerce, same-day delivery and other trends will influence the kind of service wholesalers are expected to offer, and the technologies they need to leverage.

Standing apart will require coordinated company-wide approach, as well as innovations that make doing business with your company easier, faster and more cost-effective. Wholesalers are exploring ways to harness technology in real-time for value-added services including:

• Drone deliveries within hours
• Embedded sensors to enhance traceability or improve customer service
• Virtual training for customers
• Using predictive analytics to track demand and improve procurement
• Incorporating live social media feedback into processes
• Using mobile tools for spot buying to broaden inventory.

New technologies deliver pay-offs

A report by Oxford Economics for SAP based on surveys of more than 3,000 executives showed 57 percent of small and midsize wholesale distribution companies believe their digital transformation efforts allow them to compete more effectively with large companies.

Smaller wholesalers involved in the report believe technology investments will deliver the greatest value for their business in terms of innovation; customer satisfaction and engagement; streamlining internal processes; and employee engagement.

The Oxford Economics report also reveals that smaller wholesalers have work to do to harness digital opportunities, with gaps in change management expertise, lack of mature technology and skills at the employee level.  The reports’ authors write, “Data analytics skills, for example, will be critical to WD firms as they face pressure to translate massive quantities of data produced from connected devices and sensors into meaningful insight in real time.”

“They also must find and develop workers and leaders who can collaborate with other functions, redesign business processes to reflect new technologies, and adapt to the emerging demands of working with intelligent machines.”

Benchmarking that SAP conducted with its customers showed 81 percent believe that simplification is important for their organisation, and 88 percent agree IT investment is key to achieving simplification.

An integrated, cloud-first ERP simplifies the flow of information across every area of your business, which makes it one of the most transformative technologies your business can implement. It’s the backbone upon which more advanced digital disruption can take hold within your business.

Building from a unified foundation

Data, value-added services and more cost-effective processes are key to getting ahead of changes in the supply chain and managing diverse product inventories. Therefore, the most important technologies to get right are those that underpin everyday workflows.

A robust ERP designed for small to midsize wholesalers like SAP Business One allows you to:

• Capture all of your business information in a single, scalable system
• Automate and integrate inventory management
• Analyse data and inform decisions with intuitive, integrated business intelligence
• Give employees on-the-go access to the software via an intuitive mobile app.

SAP Business One will give your team the capacity to make sense of data, make good decisions and improve day-to-day tasks, integrating advanced technology into the deliver value-added services through advanced technologies.

For more information on how SAP Business One can help you digitise your organisation, call us on 1300 045 046 or email info@leveragetech.com.au.