Distribution Disruption: White Paper (2022)
IFMA
- Distributers are looking for value chain efficiencies and new sources of revenue and expect manufacturers to play a role
- Sources of revenue examples
- Expansion into new channels and segments (think Sysco and USF supplying grocery stores)
- Selling operator data to manufacturers
- How manufacturers might play a role
- Investment in cat man
- Creating products and marketing programs that help them penetrate new channels
- Sources of revenue examples
- Distributors are making major investments in technology (thanks to widespread adoption during the pandemic)
- Why? Gain long- and short-term efficiencies and to offset labor costs
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- ST: Ecommerce, forecasting tools, inventory management
- LT: Warehouse automation
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- New customer service models are being introduced
- Some are focused on reducing sales headcount vs. others focusing on their people and the value they can add as a differentiator
- Why? Gain long- and short-term efficiencies and to offset labor costs
- Manufacturers will have to customize support plans to meet the needs of individual distributors and their evolving strategies
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Last modified: Thursday, June 8, 2023 at 2:58 pm