Data Analytics | the Future of Wholesale Distribution?
How has data analytics helped drive the decision-making process in your industry? In Wholesale and Distribution, there are countless data points to help distributors make informed decisions for best practices. As technology and capabilities grow, there are many opportunities to enhance workflows and productivity throughout the industry.
Five key tactics
- Demand Forecasting and Inventory Optimization
Data collection and analytics is utilized to help distributors predict customer demand. Distributors that utilize tools to assist with demand forecasting and inventory optimization gain insight into valuable data that allows them to better track inventory and reduce carrying costs.
- Customer Segmentation and Personalization
Creating processes and leveraging systems that utilize data to segment a distribution company’s customer base can help identify different buyer personas that enable distributors to generate a unique experience for their customers.
- Pricing Optimization
By using data distributors can identify and assign the best price for their goods and services. Factors that contribute to pricing optimization include:
- market demand,
- competitor pricing,
- product profitability, and;
- customer preference.
- Supply Chain Optimization
Distributors can utilize data and create the most efficient supply chain to generate the most effective profit. This enables better resource allocation, reduces lead times, improves order fulfillment, and enhances overall supply chain efficiency.
- Fraud Detection and Risk Management
Data patterns allow distributors to identify key risks and allow distributors to have time to develop a mitigation plan. Proactive risk management measures, powered by internal controls and analytics, enable wholesalers to protect their business from external technology threats, safeguard customer data, and maintain regulatory compliance.
What to do moving forward
The best first step is to start gathering data. You probably already have a plethora of data in multiple places. Collecting and analyzing that data using tools like Power BI and other similar software allows your team to examine data trends and provide key insights tailored to your business. Consulting an industry professional like those on the Barnes Dennig Wholesale and Distribution team can highlight integral ways to improve your processes and make your business more competitive in a shifting macroeconomic environment.
The ability to analyze and utilize data trends is invaluable to distributors and can provide them with a key advantage over their competitors. Utilizing even a few of these data points can help you and your business increase profits and consumer satisfaction.
Looking to make a lasting impact with your business? Contact one of our Wholesale Distribution pros here. As always, we’re here to help.