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Overcoming Challenges: Digital Transformation in Distribution

Forgestik Team  |  April 6, 2022

Digitalization in the wholesale distribution industry: a smart solution

Since the start of the pandemic, distribution company leaders have been facing new challenges. With today's highly interdependent supply chains, the associated risks and uncertainties can be more costly. We also have to deal with rising prices, product shortages and other challenges that are difficult to overcome.

These hurdles may cause lead-time uncertainty. Considering that the ultimate goal of distribution companies is to always deliver and on the exact date, how will they be able to ensure flawless service and keep customers satisfied in an increasingly automated environment?

Creating a smart or intelligent business

A smart business always works wonders. Having an intelligent system gives an account history, a record that keeps track of all activities such as trades, purchases, and other transactions. All this information is at your fingertips! This type of system allows managers to make the best decisions at the right time. Indeed, a smart business automates actions, but most importantly, it takes advantage of the data analysis and reports that can be generated for end-to-end supply chain traceability.

A smart business is flexible— it quickly adjusts its operations to plan or avoid supply chain disruptions. Creating value and ensuring customer satisfaction are definitely the most important assets of smart businesses.

Digitization allows to quickly access stock information, anticipate purchases with automated planning, prevent inventory stock-outs, calculate delivery times, estimate delays and more.

The value of automation in business processes

Innovations are changing the wholesale distribution industry, moving from standard products to more personalized requests or value-added services. But one thing is for sure, digital transformation, once an imperative to gain a competitive edge, is now a key to business resilience and transformation globally. Users need to focus on what's most important, and to do that, they need to be freed from redundant tasks.

Defining new processes and automating them is a must! This way, users can create value by focusing on important issues, they can also innovate and make informed decisions without getting bogged down by the 3 R's (Repetitive, Recurrent, and Redundant) that bring down the efficiency of business processes. 

Taking supplier collaboration to the next level

Supply chain collaboration is about coordinating with internal departments and external partners to sustain an optimized flow through the supply chain in order to efficiently meet demand and ensure on-time, in-full delivery. Among the solutions, a smart business will plan service disruptions, release emergency stocks, and inform customers of potential delays. In order for distribution companies to offer the best service, suppliers involved in the supply chain network must stay connected.

Nowadays, suppliers need to be more flexible. They must show transparency and accountability for all supply chain transactions. Suppliers can no longer afford to give approximate lead times. With a smart system, distributors can better anticipate supply chain disruptions and plan accordingly.

Artificial intelligence (AI) is making supply chains faster, more reliable and more profitable. For distribution companies, a smart system must include external supplier data. Decision-makers must keep this in mind when choosing suppliers. 

Overcoming competitive challenges

Dealing with supply chain challenges is not an easy task. The stakes are high, customers expect 100% accuracy and can easily turn to competitors. There’s no room for mistakes. The challenge is all the greater since distribution companies depend on the supply chain and are vulnerable to its disruptions. But with automated processes, a smart business can overcome these challenges and stay competitive.

To help your distribution company grow and succeed, contact us. We will support you in digitizing and automating your processes.