The distribution industry has faced unending disruption over the past five or so years, but the last quarter has shifted the changes into overdrive. Saying that the last few months have been a bit of a challenge is an understatement. But with every challenge comes a learning experience.
Today, we look at some of the effects, surprises, and lessons to learn in order to set yourself up for a resilient future.
As we had discussed in a recent series of articles on the challenges and changes in the distribution space, the industry has continued to become more competitive and many are making strides to adapt. With competition accelerating, buying channels evolving, and entire supply chain changing in the last quarter, a recent MDM article explored a few lessons you can take away from the second quarter of 2020 in order to come out of this stronger.
If you take one thing out of this, it’s that significant change can take place overnight; markets, revenues, capabilities, issues, competition and customers were flipped. Especially for those who do work with suppliers from China, you had already planned for the two-week supply chain disruption brought on by the Lunar New Year. Little did you know that those two weeks would extend for months.
While we may not face another outbreak of the same scale or significance of the COVID-19 one, this is a reminder that the supply chain is surprisingly fickle and anything can change in an instant.
To address this, distributors need to be able to pivot on these unexpected shocks to the system. Though you may not be able to predict the future, you can become flexible and adaptable enough to change your tactics when the options are presented. Here are just a few tips for success:
While hopefully the last few months taught you more about your own people, it hopefully showed you a bit of information about your supply chain as well. How did suppliers, customers, service providers, investors, competitors, and the like react to the market changes?
You were able to see first hand who among them is most consistent, financially stable, and in control of the scenario. You’ve seen which of your partners can handle chaos, which ones are flexible, and who is the most reliable.
You now know which customers were best prepared for disruption, which suppliers have continued to deliver, and might even know what competitors have clients in play. But what are you going to do with this information?
One of the most likely things you’ve learned is just how much you can accomplish with little more than a computer and telephone. Long gone are the days of the office-only mentality.
While you may have learned that your people are productive and efficient even without a traditional workplace, you may have seen that the tools you currently use hold them back. As you begin to focus on whatever is next, now is the time to look at the necessary tools to get the job done.
Building a resilient and decisive distribution business requires the right information, the right skills, and the right focus. If you’re looking to forge confidently into the future, you need to empower your people to lead. With the right information, access, and tools, they can do just that.
If you want to learn more about modern, adaptable ERP solutions and what they can do for your business, contact us for a free consultation and product demo.
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