What Changes Need to Be Made to Preserve the Wholesale Distributor Business Model?

preserving the wholesale distribution business model

Several industries are facing technological disruptions around the world. The wholesale distribution model has also faced challenges with the advent of e-commerce. Industry players will have to devise a strategy to keep their wholesale business model relevant in the current context of high-tech development.

Here is what wholesale distributors can do to preserve the wholesale distributor business model:

Provide Sound Value Proposition Driven by Insights

Wholesale distributors should seek new ways of providing greater value to clients. This can include upgrading the product catalog, improve and expand service offerings, penetrate niche market segments and consolidate their position in the market through mergers and joint ventures. Those distributors who utilize insights to execute these procedures will be able to provide value and remain relevant for a long time to come.

In order to navigate the rapidly evolving scenario, wholesale distributors should provide a personalized client experience and make use of all available upsell and cross-sell opportunities. Wholesale distributors must now be data driven and digitalized to mine, harvest and harness data in order to find insights. This information can then be converted into an actionable strategy for leveraging market opportunities and providing greater value to manufacturers and retailers.

Focus on Key Market Segments

Distributors should utilize insights related to key market segments to refine and develop their service offerings and products that will resonate with the needs of these specific market segments which may vary from one segment to another. More and more distributors are realizing that in order to become the preferred route to the market, they must now do more than saturate the market with sales reps, wider array of service offerings and distribution points.

Increased Consolidation

The drive in consolidations has changed highly competitive markets such as foodservice, chemicals and pharmaceuticals. For many small wholesale distributors, viable sustained growth has been achieved through consolidations. These transactions are indeed mitigating several risks including the threat of disruptions. Newly joined partner firms can pool in their resources and expertise to provide a wider range of service offerings and improved customer service which will allow wholesale distributors to remain sustainable and relevant well into the future.

Provide Incremental Value for Other Partners

Distributors are now turning towards digital technology to capture a wide spectrum of data and market information. They should apply analytical software tools to obtain insights from data thus harvested and then collaborate with their supply partners to apply it to the market.

The thrust of current wholesale distribution strategy should be on the data driven paradigm. This can be used to drive multiple activities that can provide key benefits. For instance, this can include the increased adoption of category management practices, greater investments in sales and operations planning, analyzing results in greater detail with suppliers and greater use of macroeconomic data to provide key insights.

The data driven approach has now become imperative which is why Indigo Olive is providing a wide array of analytical tools and software suites to help wholesale distributors to remain competitive.

Indigo Olive Software

1001 – Indian Creek Road,
Wynnewood, PA 19096
Phone: +1 (888) 788-4634 / 888-898-INDI
Email: sales@indigoolive.com

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