The retail marketplace is changing due to multiple advancements in technology. The traditional ‘high street’ retailer finds themselves in a more significant fight for market share and increasingly has to compete with online retailers.
It’s not the ‘big-box’ retailers that feel the pressure of this changing landscape: even small and medium-sized businesses need to fight to stay relevant in the physical and online retail space.
Many traditional wholesaler businesses have traditionally used ‘pull’ systems where retailers can place orders for products, which are then sent directly to the retailer. With shareholders looking for increased growth and a rise in online shopping, the traditional methods of wholesale distribution could prove to be too time-consuming and expensive in the future.
The following article will explain what to expect from technology for traditional retail wholesalers and the benefits, costs, and risks to consider before implementing the system.
What is Wholesale Distribution Technology?
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According to reports, in 2015, e-commerce sales accounted for 5.9 percent of all retail sales in Australia.
Wholesale distribution technology solutions are computer programs that help traditional wholesaler businesses deliver products to retailers. These solutions streamline the wholesale process by combining the retailer’s order, supplier information, and shipment tracking in one system.
It allows for more efficient management of information, with warehouse staff able to track order status and the location of individual products.
The goal is to allow traditional retail wholesalers to work with retailers of all sizes, including direct wholesaler relationships or online retailers using the available technology.
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What Are the Benefits of Wholesale Distribution Technology?
Here are the advantages of implementing wholesale distribution technology into your traditional retail, wholesale business.
1) Speed Up the Wholesale Process
Order processing can be streamlined with wholesale distribution technology, and products can be scanned and distributed faster.
2) Improve Communication with Retailers
A platform for traditional retail wholesalers allows wholesaler businesses to communicate with retailers in real-time with the help of advanced technology, offering a better customer experience.
3) Shorten Lead Times
You can cut lead times with wholesale distribution technology because the retailer’s information is all in one system, and products can be processed faster.
4) Improve Warehouse Inventory Management
Wholesale distribution technology allows traditional retail wholesalers to manage warehouse inventory better.
5) Improve Out-of-Stock Detection
Importing retailer orders into wholesale distribution technology means that wholesaler businesses can know immediately whether items are out-of-stock. There are fewer order errors, meaningless returns, and dissatisfied customers.
6) Reduce Shipping Costs
Wholesale distribution technology reduces shipping costs by allowing staff to track the location of individual products within the warehouse.
7) Reduce Human Error
Although not all human errors can be eliminated, wholesale distribution technology does reduce human error in most cases.
8) Fewer Product Returns
Wholesale distribution technology enables traditional retail wholesalers to reduce the number of product returns and customer complaints by having real-time access to order status and product location.
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9) Reduce Data Entry Time
Wholesale distribution technology reduces the time spent processing orders. It can replace manual data entry by allowing efficient warehouse management.
Final Thoughts on How Technology is Transforming the Retail Wholersalers Marketplace
Wholesale distribution technology is essential for traditional retail wholesalers to remain competitive. It allows faster order processing, better communication with retailers, and improved warehouse inventory management.
It can help reduce shipping costs, human error, and product returns while improving the accuracy of order processing.
Implementing wholesale distribution technology can mean a more efficient wholesale business and happier customers.