Essentials Magazine Essentials Fall 2017 | Seite 39

Trends in Distribution
three other disruptive forces projected
to increase greatly by 2020: adoption
of mobile technologies across the val-
ue chain (increasing by 47%), vendors/
suppliers “going direct” (increasing by
22%), and 3D printing of objects (in-
creasing by 651%, though still remain-
ing a relatively low overall significance).
(See exhibit 1-1.)
Other key disruptive factors include
industry consolidation, which is pro-
jected to have less of an effect in 2020
compared to today but will nevertheless
remain an important, industry-shaping
factor. Perhaps most importantly, the
influence of value-added services to dis-
tributors’ overall value proposition is pro-
jected to increase 4% by 2020 to remain
in the top three influences today and into
the future. This plays an important role
in shaping companies’ forward-thinking
strategies as they prepare to combat and
ward-off market disrupters.
There are many reasons disruption
is taking hold in wholesale distribution,
but the primary factors are changing
customer expectations and evolving
technology — and these are linked in
important ways. First and foremost is
the customer experience, which contin-
ues to be reshaped by technology. Think
about the various apps you use in both
your business and your personal life.
You probably have a favorite or two that
you would consider fun, easy-to-use,
intuitive, and helpful — essentially, they
make some part of your life easier or
more enjoyable. Such technologies have
made our lives as consumers of prod-
ucts, services, and information much
easier, and they are increasingly making
their way into the B2B world as well.
Technology’s Role as a Disruptor
Technology is helping to redefine
value and service and is changing the
roles of distribution sales personnel, as
one important example. The days of in-
troducing new products, specifications,
and potential uses are long past. Today,
such information is readily available
online, and customers research products
and capabilities before they contact a
salesperson at all.
Technologies such as smartphones,
EXHIBIT 1-1. Key Factors Influencing Distributors’ Business
Macro-economic conditions
-11%
Price-centric competition and price transparency
-32%
Increased importance of value-added services
+4%
Consolidation within your industry / line of trade
-14%
Consolidation of end customers
-12%
Vendors/suppliers going direct
+22%
Consolidation of suppliers
-23%
New electronic competitors
+44%
Adoption of mobile technology across value chain
+47%
Regulation / legislation at federal / state level
-20%
Private-label products your company is selling
Growth of green / sustainable / responsible segment
Private-label products your competition is selling
Reshoring of manufacturing
3D printing of products
+11%
+30%
-26%
+14%
+651%
■ Today
Today
GPSs, and RFIDs are being used in new
ways as well, supplemented by myriad
new data sources and types of data that
can be analyzed to gain insights unavail-
able just a few years ago and suggest
actions to optimize, streamline, and
eliminate processes. Underlying all of
this is the customer’s desire for faster,
better, more streamlined, and personal-
ized service — and that is making it pos-
■ 2020
2020
sible for new competitive forces to come
onto the scene and meet those needs.
Disruption From New Competitors
For a long time business leaders
knew who their competition was from
across the street or across town, and
they differentiated themselves from
that competition to win business. When
a fierce new force entered the market,
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