In the rapidly evolving landscape of wholesale distribution, 2022 presents pivotal trends reshaping operational paradigms. From digital transition to omnichannel strategies, this blog outlines transformative insights for wholesale distributors. Covering aspects like digital integration, ERP systems, omnichannel approach, warehouse management, cash flow optimization, and the strategic role of 3PL partners, the blog offers an encompassing guide to navigate the shifts in the distribution industry. Embracing technology, integrating efficient systems, and strategic partnerships with 3PL providers emerge as key pathways for distributors to thrive in an ever-evolving market.
Wholesale distributors have had to contend with some swift and drastic changes in the last few years, including global supply chain disruption, rapid technology advancement, and shifting purchasing and selling habits. According to Deollite’s research study, compared to past years, Indian retail is undergoing a fast shift, fueled by reasons such as growing family incomes, greater consumption, e-commerce, favourable demographics, and cheap credit availability. Today, the Indian retail business contributes more than 10% of the country's GDP and employs over 8% of the workforce. Moreover, new players are entering Indian retail at an unprecedented rate.
The digital wave is likely to propel this expansion even further, bringing up opportunities for revolutionary customer-oriented business and operating models. It's time for wholesale distributors to adopt brand-new forward-looking strategies that will help satisfy customers and retailers in the long run.
Top Strategies for Wholesale Suppliers to Survive in the D2C Market
The D2C market has significantly increased competitiveness for wholesale distributors. As a result, there is a need to offer extensive services and benefits to demonstrate why using your services is preferable. In a nutshell, it implies that your service must be quick, inexpensive, and enjoyable for the consumer.
Here are some of the new trends every distributor must try out:
Go Digital: Improve Your Search Engine Value
The B2B market is undergoing a significant transformation. Distributors are revamping their business plans to incorporate a virtual presence, driven by digital technology, new sales channels, changing customer expectations, and a worldwide pandemic.
For some businesses, this transition is motivated by self-preservation rather than intentionality. Many distributors are unfamiliar with the term "digital branch." This is because change can be tough for people who are accustomed to operating inside their typical sales paradigm. However, the development of social media platforms, omnichannel sales, and smartphone users necessitates a digital shift for every distributor to thrive in the fast-paced industry and changing customer behaviour.
Many distributors lack the technology needed to compete, and they must move quickly if they want to maintain and expand their market share. The first stage is to create a solid eCommerce infrastructure with B2B capabilities.
Adopt Integrated Solutions: ERP is the New Norm
You can handle distribution operations more efficiently with modern ERP software. Real-time visualization and financial reports are crucial to streamlining your business operations.
Here are some crucial benefits of integrating an ERP system.
Plan Omnichannel Strategy: Provide Seamless Experience
One-touch integration of operations and physical product flows across all channels to deliver a smooth shopping experience is referred to as omnichannel distribution. Businesses that offer quick shipping, flexible pick-up and delivery options are gaining a competitive advantage.
Customers want to be able to explore, shop, and buy across several channels, including your physical stores, online stores, Amazon, Facebook, and Instagram. They will switch back and forth between channels to verify they are receiving the greatest pricing and making the purchases they desire. The opportunity to boost your sales is the primary benefit of promoting your firm through new channels. More income potential might arise as a result of new clients and new channels.
Integrate WMS: Automate & Increase Warehouse Efficiency
Warehousing is an essential component of the supply chain industry. An effective storage strategy is essential for increasing customer happiness and efficiency. Without suitable management techniques, it is impossible to optimise labour costs and storage difficulties. Markets are constantly in need of top-tier warehouse management software to improve operational capabilities and storage needs.
Integrating a strong warehouse management system assists distributors in increasing supply chain visibility. Transparent performance is essential for improving information flow and business connections. The growth of IoT-enabled smart devices has increased visibility by lowering reputational risks and establishing a loyal supply chain ecosystem.
Automation and machine learning-enabled WMS help in improving the efficiency and speed of supply chain flow. Moreover, it helps to maximize labour and space utilization. Even employees need excellent technology integrated workspaces to safeguard their lives, improve their skills and channelise their energy into more creative and productive tasks.
Build Revenue: Improve cash flow and liquidity
In every organisation or business, cash flow is an important growth metric. If you don't have enough cash flow, you won't be able to expand your firm or invest in new sectors. To streamline your financial flow, visibility is essential.
Increasing sales isn't the only way to increase earnings. Integrating your eCommerce with an ERP solution will allow you to enhance cash flow while decreasing the amount of time you spend on manual tasks. Also, assess your investment nature. If you are spending too much on unproductive technology or marketing tactics, then you can think of eliminating it and raising your bottom line.
Choosing the right technology solutions and partners is also crucial to improving your revenue flow. 3PL partners can help distributors improve workflow and increase revenue. Outsourcing logistics tasks will help distributors to focus more on in-house strategies, enhance workflow, and increase time to market.
Partner With 3PL Providers: Outsource to Build Network & Streamline Growth
The end of the year is nearing, and we must work in accordance with the business strategy for the following year. These unprecedented changes that have occurred in the distribution industry during the previous two years have complicated matters. Hence, distributors must invest in specialised skill sets while building a value and reform the management approach into one that supports corporate goals in order to create an innovation-friendly culture. Finding a 3PL partner is one of the strategies to make your distribution hassle free. Outsource your logistics and enjoy the perks of timely delivery.