Today’s Distribution Buyers Expect More. A Total Business Transformation Can Help Give It to Them

MDM’s recent Mid-Year Outlook shows that while 2023 was generally tough for wholesale distribution, with 13 of 19 sectors declining, the rest of 2024 and especially 2025 are set up for strong growth. 

But where will that growth come from? As MDM CEO Tom Gale put it, this is “the year of customer experience.” If distributors are going to thrive no matter how bumpy market forces may be, they need to strengthen their relationships with their customers and deliver experiences that set them apart from the competition. The same old approaches won’t be enough. To meet rising customer expectations, distributors should consider a total business transformation. 

What’s a “Total Business Transformation”? 

A total business transformation changes every pillar of your business — including sales, talent, data analytics and technology — to be more competitive and deliver more value to customers.  

If there was ever a time to take on such a substantial challenge, it’s now.  Navigating post-pandemic supply chain uncertainty requires innovative thinking and proactive changes. And with more tech-native customers demanding seamless omnichannel experiences, it’s important for distributors to adjust to the shifting definition of “customer-centric.” As distribution management consultant Mike Marks writes, “Distributors who have survived and thrived throughout time have been able to adapt to threats and opportunities quickly and efficiently. They understand that customers are at the heart of the need for digital transformation.” 

That brings us to another big reason why it’s the right time to consider a total business transformation: Enterprise technology has gotten too good not to upgrade. Recent strides in Cloud computing, automation and machine learning make it possible to fully reinvent your business.  

Business intelligence platforms enable data analytics that can keep a company thriving no matter how bumpy market forces may be. Top ERP solutions now offer advanced automation workflows that can make your operations more efficient and employees more productive. In an industry where customers increasingly prefer most of their buying journey to be online rather than face-to-face, smart sales software can guide them through each of your channels and put your reps in a better position to close deals. When you choose the right technology solutions and implement them properly, you can quickly build a solid foundation upon which the rest of your transformation efforts can be built.  

Key Elements of a Total Business Transformation 

So, how should your distribution business go about the transformation process?  

• First, develop a clear strategy with measurable, realistic goals. Do you want to expand your geographic footprint? Enter new product markets? Do you want to focus on new business or on improving customer retention? “Change everything” isn’t a strategy; without a specific idea of what you want that change to achieve, you’ll just be throwing darts with a blindfold on. 

• With a destination in mind, examine and document your business processes and operational workflows. Are your sales reps wasting valuable time entering order forms into your system? Does it take too long for expenses and leave requests to be approved? Target processes that could be streamlined with automation to free up more time for higher-value tasks. 

• Investigate technology solutions that can make your operations more efficient, break down data silos and drive innovation that supports business goals. Look for analytics tools to optimize inventory management and help you develop more responsive pricing strategies. Consider switching to a Cloud-based ERP that makes it easier to leverage your finance data. Then, find a technology partner who will help you implement your chosen solutions. 

• Prioritize change management to ensure widespread and enthusiastic adoption of new approaches and tools. Get feedback from your teams early and often. There will likely be some resistance, but having an open dialogue will help address many of their concerns. You could pick the best possible solutions, but if you just drop them on your team and say, “This is how we’re doing things now,” you won’t get the buy-in you need to fulfill their transformative potential.  

• Remember that it all comes back to the customer. It’s easy to get caught in the weeds when you’re optimizing internal processes and hunting for the best software upgrades. Don’t forget to ask the question, “How will this change serve the customer?” They expect a seamless, omnichannel customer journey, so make sure each aspect of your total business transformation is another step towards making it possible.  

Take Advantage of a Growth-Friendly Future with Enavate 

Things are looking up for the distribution industry, but that doesn’t mean you can just float around and wait for a wave to carry you to success. You need to be proactive and make the moves that will put you in a position to benefit. To learn more about how Enavate can help you implement and integrate tech solutions to transform the way you do business, contact us today.