Keynote speaker R “Ray” Wang, Principal Analyst and CEO of Constellation Research at SuiteWorld 17 earlier this year provided some interesting insights. They highlight the need for wholesale distributors and multichannel businesses to make sure they keep up with new technology and continually review what they do and how they are doing it.
Firstly, referencing the US Fortune 500, Mr Wang noted that 52 percent of companies in the Fortune 500 have either gone bankrupt, been acquired or merged or fallen off the list since 2000. He stated these organisations failed to respond quickly to the change.
Consider how this period over the last 17 years or so, incorporates the 2001 dotcom bubble and the overheated market relating to technology stocks and shares; it becomes clear that the failure to respond to change illustrates the deeply disruptive effect which new technology may have.
Secondly, Mr Wang identified nine trends that he sees happening right now which reflect new realities of business models.
1. Shift from product margins to services margins
2. Develop post sale business models
3. Invest in direct to consumer
4. Forecast precision demand
5. Move back to domestic production
6. Maximising equipment value
7. Streamline order to cash
8. Increase automation and robotics
9. Improving uptime and optimization
There are a few unifying principles that link these trends and which serve as key considerations for distribution businesses already pursuing a multichannel strategy, or those planning to diversify operations and execute one.
1. Investing in the right technology
2. Aiming to achieve operational excellence
3. Providing seamless mobile and multichannel
Do you worry that the ERP technology in your business doesn’t perform well, is too costly and doesn’t provide value, or simply past its sell buy date?
BlueBridge One specialises in integrating NetSuite ERP to provide the flexibility, agility and capability today’s distributors and multichannel businesses need. To sustain growth or to re-boot operational processes and workflows, we have worked with 100’s of businesses, enabling them to adapt and succeed as technology disrupts markets and creates opportunities.
To see how our cloud ERP solutions help you execute a business strategy that incorporates the key considerations that link the nine trends, simply get in touch today.
Request a call back from one of our consultants today and we’ll be happy to help.