Five trends influencing the future of the distribution industry

Digital strategies driving the distribution landscape

Distribution is a critical link in the supply chain, and digital strategy is becoming an increasingly important piece of the puzzle for managers to figure out. In an era of rapid change for e-commerce, many distribution companies have been slow to adopt digital strategies for sales and marketing, especially in more established industries such as building products, chemicals and other raw materials that factor into production. Below, we outline five trends that are driving significant change in the distribution landscape and their corresponding strategic considerations for managers to ponder.

1. The continued rise of e-commerce as a share of total sales and the challenges of implementing an e-commerce platform
2. Big data, analytics, and the increasing supply of information that can be leveraged to make better decisions and learn about customers and the value chain
3. Creating cohesive, seamless customer interactions across multiple platforms (ordering and tracking, customer service, warranty claims, credit applications and other key customer interaction points with companies)
4. Using technology to become leaner, more responsive and more valuable in the supply chain to your partners, which in turn makes you more competitive
5. Increasing online marketing presence to stay relevant among the next generation of purchasing decision-makers

Perhaps the single biggest challenge that managers face when considering a digital strategy is how to get new systems and legacy systems to work together in a seamless and reliable way for all business stakeholders (customers, employees, owners, managers, etc.). ALEX KELLISON, DIRECTOR, OAKLINS

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Arjen Kostelijk Amsterdam, the Netherlands
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Frank de Hek Amsterdam, the Netherlands
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Alex Kellison Jacksonville, United States
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