The distribution industry is constantly evolving, different changes are taking place and distributors have to constantly make adjustments to accommodate these changes. Distribution companies need to come up with new strategies in order not to get left behind. Retail sector has undergone series of changes therefore the distributors must change too to suit their needs.
There have been a lot of challenges and opportunities encountered by distributors over the years The ability to manage these challenges and opportunity has helped a lot of distribution companies develop and grow in various aspects ranging from better customer service to greater profits.
One good thing however is that, with this evolution has come a lot of new tools and factors which if managed and utilized effectively makes the entire process of handling these challenges a lot easier. Consumers needs are also changing, and distributors are looking for new ways to best provide solutions to these needs and making access to these solutions easier and faster.
Some of these changes are caused many major trends which are making waves in the distribution section causing disorder in the regular working sequence of most distribution companies around the globe. Some of the trends affects the distribution companies positively by strengthening them while others affect distributors negatively.
Notable trends that have taken over the distribution industry over the years and is currently dictating the sequence of operation of distribution companies are:
- Online Convenience store distribution.
- Product innovation.
#1. Online Convenience distribution: This can simply be referred to as E-commerce, customers’ needs are evolving, people crave faster and easier access to information in order to provide timely solutions to problems. Online platforms are making this process easier. Almost every distribution has content on these platforms where retail traders can access information about their businesses and carryout transactions.
#2. Merger: A major trend in the distribution industry currently is the increase in competition, there’s a growing number of competitors. Different distribution companies are seeking to be at the top of the line in the distribution sector by exploring different factors and tools at their disposal. Most distributors delve in new options in their bid to grow their business
Mergers involving two or more distribution companies coming together to form a single larger entity is becoming more common. One advantage of these mergers is that more resources become available for these distribution companies. Some distribution companies also acquire various smaller distributors or businesses associated to distribution to help boost their operations.
#3. Product Innovation: The distribution industry focuses on customer satisfaction. Offering the right variety of products and services in a timely manner is a distributor’s major goal. Distributors are expanding stock, distributing larger variety, adopting available technology to project customers’ needs and creating solutions even before these problems develop. Evolution will continue to occur, but the ability of these distributors to adapt to these never-ending trends ensures that customers are satisfied and their businesses are successful.