Think about the effect Amazon has had on the marketplace, on multiple marketplaces. Just the retail environment on its own has suffered big hits as a result of the move to e-commerce. The consumer has spoken and there is a predominant way they want to get their products and services. It is online. And yet the complete disruption in the supply chain hasn\u2019t kept itself to retail operators.<\/p>\n\n\n\n
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Companies are now getting into their own logistics game.\nSome are acting as their own intermediaries. How will vast sections of the\ntransportation and logistics sector adapt to ensure their end users are\nsatisfied and business remains strong? <\/p>\n\n\n\n
Take wholesale distributors as one example. If there is one\ncritical component of a wholesaler\u2019s arsenal, it is the ability to control the\ncustomer interaction, from beginning to end. Transportation companies\nthemselves focus on their end user and try to stand out in a crowded\nmarketplace. For companies to keep up with each other in this hyper\ncustomer-focused environment, they must innovate. <\/p>\n\n\n\n
Wholesale distributors that rely on large warehouse models\nare seeing the way business is done evolve. The way companies like Amazon do\nbusiness has created unprecedented levels of innovation, choice, and greater\nvalue for the customer. Even more, they control their verticals. From\nwarehousing to purchasing to logistics, it all rests in their hands. <\/p>\n\n\n\n
For companies to stand out, they must figure out how to\nproactively delight their customers. They must earn the trust of their\ncustomers and their suppliers. If you don\u2019t take a long-term view of your\ncompany, you may be caught short-sighted. So, what can trucking\ncompanies<\/a> learn from operations like these?<\/p>\n\n\n\n The Secret Sauce<\/strong><\/p>\n\n\n\n Whether you are a small or large trucking company, or even\nanother operator in the transportation and logistics space, constant innovation\nis key. You must ensure you execute a plan according to the way it was\noriginally laid out. Don\u2019t be afraid to admit when a sacred cow needs to be put\nout to pasture. When you try to out-innovate your competition, there will be\ntimes when you fail. You must be aware of those moments and realize they are\npart of the process.<\/p>\n\n\n\n Another consideration should be how much you outsource. Are\nyou investing a lot of money on outside partners and is there a way for you to\nbring those services in-house? Do you have your finger on the pulse of future\ntechnology trends and are you able to predict what your customers want? These\nare all appropriate questions and are simple guarantors to how companies like\nAmazon can disrupt so many industries. <\/p>\n\n\n\n Provided you are following industry trends and discovering\nnew ways to cut costs and improve the customer experience, you will come out\nahead of the game. Wholesale distributors can benefit from this mentality. Even\nwhen the bottom line isn\u2019t as padded as you would like it to be, you can\u2019t\nafford to not focus on these measures. If there are other disruptors in your\ncategory, you should be innovating your way out of obsoletion. <\/p>\n\n\n\n It really does not matter what you are selling or offering,\ncustomers are far savvier in the digital marketplace. They will compare your\nrecord to those of your competitors. They will price shop and they will insist\non fast execution on deliverables. You could call this the Amazon effect. North\nAmerican consumers expect a higher level of service. Whether you are a single\nowner-operator or a 3PL, can your company provide it?<\/p>\n\n\n\n A lot of wholesale distribution operators have e-commerce\nwebsites. Yet, some legacy operators might not have a website that is friendly\non mobile. Small details like this make or break whether partners work with you\nor your competitors. Now that everything is one click away, your customers have\nexpectations. <\/p>\n\n\n\n Customers now want to purchase smaller packages and receive\nthose packages expeditiously. Although smaller shipments result in lower\nprofits, without a strong customer base many wholesale distribution businesses\ncannot thrive. As vehicle configurations change, truck drivers and fleets will\nneed to adapt to the new paradigm. If mileage per asset drops, how long will\ntransportation companies be able to keep their foot on the accelerator? <\/p>\n\n\n\n Roadblocks and Opportunities<\/strong><\/p>\n\n\n\n There are limitations to the model. One example lies in the\nage and interoperability issues with Enterprise Resource Planning (ERP) and\nWarehouse Management Systems (WMS). Distribution networks are dotted with\nhundreds of different ERP and WMS solutions. While some vendors innovate with\nnew systems and technologies, old systems abound. <\/p>\n\n\n\n Products distributors need to consider how they will adapt\ntheir systems. If there needs to be a major system upgrade, it should be completed\nsooner rather than later. If you aren\u2019t integrating your various technologies,\nyou could be losing ground to your competition. As the industry evolves,\ncompanies will need to move quickly in adopting new technologies. <\/p>\n\n\n\n Disruption comes quickly, no matter what industry you operate in. From the trucks themselves to the logistics companies that work with motor carriers \u2013 change is everywhere. Still, there is plenty of room for expansion in such an environment. Although the trucking industry is going through a bit of a contraction, there are still ways in which companies can improve their delivery and planning.<\/p>\n\n\n\n [wp_ad_camp_2] <\/p>\n\n\n\n <\/p>\n\n\n\n The number one opportunity for wholesale delivery companies\nlies in routing and tracking technology. Are you aware of where your vehicles\nare and what your truck drivers are doing? If you aren\u2019t, you should be\nconcerned. Things like proactive mobile notifications to fleet headquarters\nallows you greater control over the shipment. The last thing you want is your\ncustomer calling and asking where their shipment is. <\/p>\n\n\n\n Another opportunity lies in the data. We have talked a lot\nabout how important proper data analysis is. Even more, you must be ready to\ntake quick action on the results of your data harvest. What are your customer\ntrends and buying opportunities? Are you tracking your customers\u2019 preferences\nand order history? Are you ensuring efficient delivery through technology?<\/p>\n\n\n\n Many firms are moving towards a predictive ordering model to\ninform their route planning efforts. Imagine being able to dynamically take\norder information and then create ghost routes through a computer program. You\ncan essentially map a route before anyone heads out with a shipment. Fleet\nmanagers should be able to see where trucks are and how full they are for the\nday, in real-time. <\/p>\n\n\n\n Solutions exist that allow companies to dynamically add and\nremove vehicles from the fleet depending on customer need or volume. If they\nhave identified a wave of deliveries, they can quickly adjust their resources\nto prevent unnecessary cost while keeping their customer\u2019s happy. Through\nproper systems integration, fleets and wholesale distributors improve ERP\nperformance. Companies stay ahead of the pack through mobile dispatching,\ntelematics, and efficient data use. Mobile GPS tracking technology allows for\nsimple trip management and instant proof of delivery. Notifications and alerts\ngo to both email and mobile. A streamlined experience awaits, companies need\nonly reach for it. <\/p>\n\n\n\n Fleets must invest in technologies that provide solutions\nfor their customers\u2019 problems. Without a top-notch customer experience, your\ncompetitors await. By leveraging technology, you can keep up with the Amazon\u2019s\nof the world. <\/p>\n\n\n\n The IoT and Trucking<\/strong><\/p>\n\n\n\n Another big area of opportunity and evolution lies in the\nInternet of Things. Key factors driving IoT growth in fleet management\napplications lie in motor carriers\u2019 desire to optimize their business\noperations, gain access to real-time fleet insights, and keep track of mandates\nand regulations for compliance purposes. <\/p>\n\n\n\n Another big area where fleets are harnessing the power of\nthe web is in route planning and management. In fact, the IoT fleet management\nmarket grew by nearly 40%\nin 2016<\/a>. As the global freight market grows, companies are throwing more\nR&D money into tackling logistics problems. As this money flows into these\nsystems, expect more innovation.<\/p>\n\n\n\n Top fleet management system companies can directly attribute their device usage to an increase in fleet vehicle sales, a greater adoption rate of advanced technologies and increased compliance with government regulations. The fact is, fleet management has never been easier thanks to technology. Being able to track specific employees and align their behavior with preset KPIs, fleets take control of their operations.<\/p>\n\n\n\n [wp_ad_camp_2] <\/p>\n\n\n\n <\/p>\n\n\n\n Whether you are a small fleet, large fleet, or wholesale\ndistributor of another type, if you aren\u2019t keeping up with the Amazons of the\nworld and investing in innovation, you are going to inevitably lose market\nshare. Keep a competitive edge, follow trends, and don\u2019t be afraid to emulate\nwhat the big dogs are doing. <\/p>\n","protected":false},"excerpt":{"rendered":"