As Amazon continues to claw away market share from distribution companies in every industry, distributors need to have plans in place to help reduce turnaround times and resist sales erosion. Is your company prepared to survive the Amazon effect?
55% of all product searches currently originate on Amazon.1
During a panel discussion at a recent warehousing conference, Jennifer Pazour of Rensselaer Polytechnic Institute explained, “A wide variety of our [order] requests are made with very little warning and are expected to be fulfilled quickly, in small units, to a number of different locations. This is the Amazon Effect. This is the idea that I want my stuff now and fast, and oh by the way, I don’t want to pay much for it.”
Why is this happening? Amazon enables business buyers to purchase goods on their website using the same methods and interface that buyers have utilized for personal purchases. So, ease of ordering coupled with product availability and delivery speed is causing the Amazon Effect to spread rapidly.
A study by Forrester Research recently reported that more business buyers are making purchases via Amazon. In 2015, 30% of B2B buyers said they completed purchases on distributor sites. However, in 2017, that number has dropped to just 16%. With the continuing exodus of customers to Amazon, distributors must fortify themselves with the tools necessary to successfully compete.
The pressure to fulfill orders within shrinking delivery windows is forcing distributors to further innovate their supply chain management and logistics. Functionality like wireless warehouse technology and data analytics provide the productivity upgrades and forecasting insight needed to further streamline distribution processes. Distribution One provides key tools to help withstand the Amazon Effect.
Warehouse+: Providing intuitive usability, Warehouse+ further streamlines warehouse productivity by working seamlessly with ERP-ONE and ERP-ONE+ software to manage real-time inventory levels for stocking and picking. Utilizing a secure connection, Warehouse+ operates both wirelessly and via wired connectivity and supports Bluetooth® scanners as well as manual methods. Learn more about Warehouse+.
Dashboard+: As recently unveiled, Dashboard+ provides role-based dashboards enabling real-time visibility into company-wide performance. Integrated into ERP-ONE+, Dashboard+ provides multiple role-based dashboard options including Management view, Customer view, and Vendor view with others planned. Below are screenshots highlighting the features and analytics of the Management and Customer dashboards. Role-based Dashboard+ data analytics provide the crucial insight into your company’s performance allowing you to make decisions quickly and correctly. Read the press release.
In addition to these enhancements, distributors must position their items where over half of product searches originate: on Amazon! With supplemental Amazon integration, ERP-ONE+ and ERP-ONE users have a direct sales channel into Amazon’s Seller Central and exposure to Amazon’s worldwide customer base.
Amazon integration: With connectivity to Seller Central, distributors can successfully expand the scope of their product visibility and enjoy a streamlined and automated order and inventory process. Through this supplemental ERP-ONE+ connectivity, distributors eliminate the need for manual data entry between systems and can sync important data including: orders, inventory availability, shipping updates, and more.
If you have questions about this functionality and how to survive the Amazon effect, please contact us at firstname.lastname@example.org.
Every single customer has unlocked transformational improvements using Distribution One’s ERP-ONE software solution. Now it’s your turn!
“Out of the gate, our first cost savings occurred in accounting. What was previously a full-time job went down to just 2 hours a day. This change alone saved us $40,000 in year-over-year labor costs.”
Empire Bolt & Screw
“Distribution One has allowed us to deliver 30% more orders without having to increase our labor force.”
“ERP-ONE actually helps our business be more productive. We operate more efficiently because our software performs like a world-class product. And that’s not marketing hype. We trust in its reliability. It is one of the best decisions our company made.”
The Nut Place
“ERP-ONE tracks product costs and sales margins for us… that benefit alone has added 4% to our bottom line after the first year of implementation and has more than paid for the cost of ERP-ONE.”
Colorado Industrial Packaging
“Enhanced productivity, lower operational costs, higher service levels, and stronger customer relationships—it’s all been attained through our ability to provide continuous real-time data generated through the myriad of programs within ERP-ONE.”
-President & CEO
A-Jax Fasteners and Tools
“Having spent 30 years on the operations side of distribution using SAP and AS400 software, I have not encountered a better system than ERP-ONE. The efficiencies and expandability has allowed us to improve our sales by $500,000 per employee in a year.”
-Chief Operating Officer
“We had immediate visibility into which sales representatives were performing and which product lines were providing the best return for our business.”
On Time Supply
“The ability to manage orders online has created greater efficiency in their business and has delivered more flexibility in modifying and tracking orders. Changes to an order instantly cascade all the way through the terminals and the processing stations cutting production time by at least 15%.”