Micro Visions’ IT Services for the Distribution Sector
Distribution is a huge, labor-intensive, and time-sensitive business. Having the right number of people and tools in the right place at the right time is the foundation on which great distribution services are built. Here are some of the most common ways in which our clients are reaping the benefits of IT adoption:
- Cloud Computing – A great enabler that lets you economically access your data anytime on any device without having to set up huge IT infrastructure.
- Bots – Bots are fast replacing agents as they are capable enough to handle routine customer queries (which is usually about 80%). They are always online and let your customer know their order status, product pricing, etc.
- Information Flow – Your customers, your agents, and your operations staff all have instant access to the data they need any time they want.
- Vertical Integration – Distribution function gets closely integrated with others like marketing, sales, human resources, etc. This enables you to foresee seasonal ups and downs in demand and plan well ahead of time, eliminating unpleasant surprises in staffing and management.
A snapshot of our services to help you own, operate, and maintain your IT networks seamlessly:
- Comprehensive solution recommendations – Infrastructure, Hardware, Software, Applications, Services, and Programs
- Strategic IT planning and management
- Project monitoring and budgetary controls
- Negotiations and contract reviews
- Hiring and/or managing IT staff
- Technology training
- Telecommunications strategy
- Vendor management
- Helpdesk support and ChatBot integration
- CTO/CIO level services
- SWOT analysis of your IT capabilities
How is Technology Disrupting Traditional Distribution and Logistics Models?
May 2019 McKinsey Insights titled The Coming Shakeout In Industrial Distribution outlines the recent distribution industry trends and its effect on industrial distributors. Early tech adopters of the sector are quickly moving to scalable, automated solutions to improve their operational efficiency. Manufacturing giants are aiming to cut down on distributor margins by building their own network to reach directly to their customers. Consumers, at the other extreme of the value chain, are getting smarter and demanding more by paying less. In a direct threat to distributors, omnichannel presence has shrunk the gap between manufacturers and consumers.
Here are the major trends disrupting the distribution sector:
- Manufacturers selling directly to consumers – Producers are offering their products online and building their own capacities to minimize or completely eliminate distribution expenditure.
- Rising customer expectations – Both business and retail consumers demand the convenience of omnichannel access, with live reporting, round the clock customer service, real-time inventory management, live shipment tracking, etc.
- Disruptive innovations – Riding on deep technology integration and innovations in key functions, newly formed Amazon Business is set to hit $20 billion sales in 2020. It is threatening to eliminate distributors from the B2B supply chain. UPS has cut down its logistics costs by 25% (about 100 million) by switching to newer navigation systems, optimizing its workforce.