For years, distribution service has been the center of every organizational supply chain. The most important part of the supply chain involves a whole lot of activities that start from getting the products and having it delivered to the final consumers. The sole objective of a distribution company is to make sure that the product gets to the right person at the right time using the best possibility of transport networks and at the best costs.
However, as a result of emerging trends such as advancement in technology, new delivery methods, and process automation amidst others, the continually evolving distribution industry is set to witness growth like never before. As good as these trends may contribute positively to the growth of distribution companies, it also has a negative impact if not properly utilized and taken advantage of.
In the industry, distributors offer warehousing, packaging, and other value-added services that ensure goods and services are obtainable and available to the end-user. The growth in demand for distribution services and be attached to globalization, growing e-commerce and retail sector, need for quick deliveries, and improving customer experience.
To fit into this atmosphere of change, distributors invest in high-end IT facilities to reduce cost, satisfy consumers’ requirements, and enhance operational efficiency to ensure adequate supply chain management.
Since distribution companies are shifting from traditional processes to technology-based processes, some of the emerging trends determining the operation of these companies are listed below:
- Advancement in technologies
- Process automation
#1: Advancement in Technologies: As technology advances, many distribution companies are beginning to integrated software that will connect various aspects of the business. They also focus on integrating advanced technologies such as motion sensors to offer environmentally maintainable services to customers.
#2: Process Automation: A wide variety of business activities and processes can now be automated. Distribution companies now adopt process automation instead of manual processing to provide streamline processes, material flow, and real-time visibility and drive customer satisfaction.
#3: E-commerce: With the constant changes arising in the distribution sector, many customers in different industries desire a multi-channel experience that will enable easy access to relevant information throughout the time of the buying process. As a result, shopping online has been a vital aspect of many successful business models, as it provides customers with easy and quick access to various kinds of products and relevant information that will ensure timely solutions to problems.
The distribution industry is evolving at an increasing rate. Distribution companies are expected to see an upward trend when it comes to sales and revenue caused by growing demand for e-commerce and the need for low-cost options that propagate cost savings opportunities and ensure efficient supply chain distribution services.