The Future of Wholesale

Planning, analyzing, monitoring. These all ensure your distribution strategy is effective in terms of wholesale industry trends. But what about the trends within the supply chain that affect your B2B relationships? Let’s take a look at the focus for 2019.

Technology versus Face-to-Face Relationships

2018 put a lot of pressure on wholesalers to digitize as much as possible. Digital invoices, digital communications, automation, you name it. Technology makes business smooth, quick, easy, impersonal, great for introverts. It’s a great way to network (a pun, here).

But what about those important personal connections? All businesses need to make strong connections and there’s something authentic and irreplaceable about face-to-face meetings.

Has the convenience of technology begun to push the authenticity of human interaction aside? With the growing expectancy for digital literacy and B2B ecommerce transactions, we’ve quickly steered away from in-person meetings. Is this so bad?

Ecommerce acts as an extension to our reach, a bridge for distant sellers and receivers, sealing transactions that otherwise wouldn’t be possible. The trick is not to resist online interactions, but to embrace them. Wholesale distribution isn’t about tradition; it’s about adaptability.

Of course, not all business interactions will be replaced with online models. Instead of being replaced, those relationships are just enhanced or modified. With current technology, you have the ability to stay in contact with customers, to keep them in the know, and to get their products to them quickly.

That said, the future of wholesale puts a greater reliance on technology. Ecommerce and automation help increase speed and communication which will keep your supply chain free of any snags.

Where did this growing focus originate? This shift in interactions? It could be from millennial influence, or maybe just the growing demands of our digital world. Almost everything we do requires advanced technology; it’s no wonder the fast paced environment of the supply chain should also be affected. As the middle-man of the supply chain, between manufacturer to retailer, speed and transparency are huge.

Ecommerce

Ecommerce is nothing new to wholesalers, but among other wholesale industry trends, its importance is increasing monthly.

B2B ecommerce is taking over how businesses interact. Ecommerce can save your company and employees time and resources to benefit you and your customers.

The customer experience is benefited by ecommerce in many ways. Ecommerce provides a platform for your customers to relay their rating of your business. Real customer experiences and attitudes towards your business may be crucial factors for new customers, and publicizing your business ratings is an expectation.

Aside from ratings, ecommerce helps the customer order quickly and conveniently, receive information about products on-demand, and even set regular, automatic recurring orders for high-demand items.

Speed Optimization

Everyone is constantly adjusting to find the most efficient options and wholesalers have to adjust just as much in order to satisfy manufacturers and retailers.

3PL

As trendy as independence was in 2018, 2019 can expect to see more stand alone business methods. Independence is huge with millennials but even more so with the growing Gen Z. We can only expect higher numbers of independent contractors in the future of wholesale, and greater competition in the talent war. More talented workers are becoming their own masters and jumping from job to job, rather than settling and developing within a company.

Following this trend, Third Party Logistics (3PL) has shown to be a great option for adaptable wholesalers in many cases.

Although 3PL has its pros and cons, we have to accept that the supply chain is fragmented, and it’s getting even moreso. Where business was once the world of jacks of all trades, we now see an increase in expert, single-serving talent.

And why is this? Competition. The market is constantly fluctuating, and workers know their talent is valuable.

With a 3PL, you can put any uncertainties about your supply chain in the hands of an expert in that field. However, this creates a disconnect between yourself and what will be seen as your responsibility if any issues arise. Delays in deliveries, malfunctions, miscommunication are all on you when the customer or other supply chain staple come knocking.

You’ve heard “if you want anything done right, you’ve gotta do it yourself,” right? If you’re a titan in the industry and can maneuver throughout the many complicated processes on your own then you might save yourself some confusion and frustration. Either way, you’ll want to consider the speed and ability of your process for the upcoming year.

Automation

With great responsibility comes impeccable tracking software. Speed is and always has been important. 2019 looks forward to technology that increases accountability and transparency in B2B and B2C relationships.

In terms of automation, the IoT gives you the ability to analyze your goals and plan accordingly. To do this, you need to set standards and track your success in order to stay consistent.

Robotics have benefited wholesale distribution in terms of efficiency, moving mass amounts of product very, very quickly; however, they’re notoriously replacing human workers.While the US job market has remained strong over the past year,

Transparency

When it comes to clarity, confidence and communication, inventory and order management transparency are key. Ecommerce and automation can help your wholesale distribution employees and customers follow your process clearly.

Automated KPI (key performance indicators) help you stay on track of your goals. By displaying your real-time performance for your employees to see, they are able to weigh their success against set goals. This will help with accountability and goal tracking.

If you’re selling online, you have the ability to communicate easily with customers. When sending money, B2B customers want to know the status of their payments. The customer should be able to track your progress, as well as the movement of their money. Transparency into transactions is key to building trust.