Technology is all around us, and it’s changing the world we live in. It’s already impacting the Collision Repair Industry. From crash avoidance technology to autonomous vehicles, technology is making its mark on the automotive industry. All indications are that this trend will continue to gain momentum. Not only will technology impact the way vehicles are repaired, it’ll change how products are distributed.
We’ve all heard the phrase: The definition of insanity is doing something over & over again and expecting different results. We know it’s a true statement, yet we persist in doing things the same way year after year—hoping we’ll make more money and operate more efficiently.
Change is hard – and technology changes how we’re used to doing things—but if we want solutions to shrinking profit margins, revolving customer doors, and inefficiency, we must be open to new ways of doing things, or we may be left behind.
It’s smart to look at other industries & how they’ve used technology to impact their businesses and increase sales. Similar strategies may impact your industry, if they haven’t already.
We’re going to look at a few companies to see 3 ways technology has changed the way those businesses operate—particularly with Distribution.
IoT IN DISTRIBUTION
IoT – the Internet of Things. What exactly is that? Simply put, IoT is a giant network of connected “things” people-people, people-things, and things-things. This includes everything from cellphones and coffee makers, to the components of machines, such as a jet engine of an airplane or the drill of an oil rig1.
Business Insider’s Intelligence — a research service, predicts there will be more than 24 billion IoT devices on Earth by 2020. That’s approximately four devices for every human being on the planet. Businesses will be the top adopter of these solutions because they lower operating costs, increase productivity, help companies to expand to new markets and develop new products2.
The new rule for the future is going to be, “Anything that can be connected, will be connected.” To stay competitive, your business will need to embrace IoT.
Vending Machines Impact on Industrial Supply
A IoT case in point is Fastenal, a company that began with 2 prototype vending machines in 2008 that were powered by software. At that time, this type of technology was only adopted by a small minority of facilities3. Fast forward to the first quarter of 2017, where Fastenal reported over 64,000 installed machines (not including leased lockers)4.
Other companies, such as Grainger and MSC Industrial Supply, have also adopted, and vending machines in industrial spaces have become a widely accepted way to house, track, and dispense products.
This is largely due to increased productivity (machines at the point-of-use shortened the distance a worker traveled between their work space & where they got their products), automated ordering (orders filled from their website), reduced deliveries, and worker accountability (by utilizing the machine’s software functions, managers could track who removed a product & when they removed it.)
An added benefit found by distributors was that they could defend their business by controlling which products were housed in the machines—therefore, keeping competitors out. They found that the system worked to grow their business, saved their customers money, and made the plants more productive567.
EFFICIENT LOGISTICS
Technology is also impacting distribution logistics. Distribution Logistics involves the flow of products—the planning, design, coordination, management and improvement of the processes of moving goods and resources8.
Let’s look at how Amazon used technology to change the way America gets products.
Digital Commerce
Amazon’s founding idea was: “Digital commerce will radically reshape our marketplace.” CEO Jeff Bezos wasn’t afraid to take risks and utilize technology to realize that vision—and it’s worked. Amazon has become an online powerhouse—causing the market value of former retail giants to plunge.
Over the last 10 years, stores like Sears saw a 96% drop in value; Macy’s was down 55%, Best Buy down 54%–while Amazon’s value climbed 1,934%. Only Walmart, who has made great strides in its online presence, has been able to fight the downward spiral – logging only a 1% loss9.
What caused such a huge decline in the retail world?
Somewhere along the line, Amazon totally changed the logistics of how America gets products: The old shopping model where Jane goes to the Mall & shops for 3 hours—coming home with a blender—has been replaced by Jane logging onto Amazon, deciding on a Fitbit –and in 4 clicks, she’s done & on to her spinning class.
Meanwhile, Amazon’s distribution behemoth takes over & has that device to her in 2 days or less. We used to go get the product—now that product comes to us. Those stores that are still waiting for shoppers to visit their Brick & Mortar establishments are being forced to close some locations.
Among those closing over 4000 stores in 2017 are: Sears, Macys, JC Penney, Gander Mountain & CVS. They either couldn’t keep up with the ecommerce competition or they got into the online game too late11.
And Amazon continues to ramp up their Distribution methods—investing heavily in regional warehouses and information technology. They’ve introduced one hour, same day, Sunday, and even drone deliveries–All powered by the willingness to harness technology to manage their distribution processes10.
INCREASED SALES BY LEVERAGING DATA
A third area where technology is making inroads is in the field of Data Analytics. Understanding how to profit using information from data is a new concept for a lot of businesses. And the demand for Data Scientists is rising as the corporate world realizes the advantage they’d have in the marketplace if they could read and interpret the data they already have in their current systems.
Can you imagine knowing exactly what needs to be done to increase sales or which processes to change to improve cycle time?
Amazon has been leveraging data for years to increase sales by marketing exactly what you want on any given day. And they’re good at it—so good that it sometimes feels like you’re being studied. Have you ever been searching on Amazon for a product, and you leave the site to check Facebook or read an article? How strange is it when you see ads pop up across your Facebook feed pitching the exact products you were just searching for on Amazon? You glance over your shoulder to see if they have a hidden camera watching your browsing habits.
Data that predicts purchases
Amazon doesn’t have a physical camera in your house—but what they do have is a comprehensive collaborative filtering engine (CFE). It analyzes your previous purchases, what’s in your shopping cart, & which products you search for the most. It then uses that data to recommend additional purchases both on Amazon & other sites. This method has increased the company’s revenue by almost 30% each year12.
Data that grows your business
This example is only a fraction of the way Amazon utilizes information. And they’re just one of many companies using data to grow their business. What they’re doing shows you how valuable future data could be to your business. You could know which employee is the most efficient. You could predict which products would fly off your shelves. And you could increase your bottom line by knowing which changes need to be made in your business.
Technology is a big part of the future of distribution, along with other areas within the collision repair industry. Early adopters will find themselves ahead of their competition.
Becoming comfortable with the new technologies can sometimes be daunting. But when you look at the advantages, it should encourage you to get on board. In an industry that’s fighting shrinking margins & scrambling to defend their businesses, it’s good news that there are innovators developing ways to connect your business to the internet. Through smart software, it’s become possible to streamline your processes, automate the ordering process of your materials, improve cycle times—just to name a few.
When you add the value of predictive data’s ability to help you improve profit margins and make your business more efficient, it’s a winning combination.
If you’re interested in innovative technology available for your Shops today, check out LeanTec Inventory Management Systems—a cloud-based system that marries smart software & hardware together. It increases material profits as it secures & tracks your products and automates the ordering process–all while providing data and customizable reports. To learn more, explore this website or go to https://www.leantec.com
Resources:
2 http://www.businessinsider.com/what-is-the-internet-of-things-definition-2016-8
3 http://investor.fastenal.com/releasedetail.cfm?ReleaseID=927626
4 http://investor.fastenal.com/releasedetail.cfm?ReleaseID=1021059
5 https://www.fastenal.com/en/9/fast-solutions-vending-
6 https://www.youtube.com/watch?v=npfF4cdFKFo
8 http://smallbusiness.chron.com/logistics-differ-distribution-77542.html
9 http://www.visualcapitalist.com/extraordinary-size-amazon-one-chart/
11 http://clark.com/shopping-retail/major-retailers-closing-2017/
I think this is among the most important information for
me. And i am glad reading your article. But want to remark on few general things, The web site style is wonderful, the articles
is really excellent : D. Good job, cheers
Here is my website – ngentot nungging
This article will help the internet visitors for building up new
website or even a blog from start to end.
Check out my web blog: BTC Maximum AI
Thanks , I’ve recently been looking for info approximately this
subject for a while and yours is the best I’ve discovered so far.
But, what in regards to the conclusion? Are you sure about the source?
Also visit my homepage – situs MPOJAYA
Having read this I believed it was extremely informative. I
appreciate you taking the time and effort to put this article
together. I once again find myself spending a significant amount of
time both reading and leaving comments. But so what,
it was still worth it!
Here is my website – find out this here
Right now it looks like WordPress is the preferred blogging platform out there right
now. (from what I’ve read) Is that what you are using on your
blog?
Feel free to visit my web site; http://Younghwacarbon.com/bbs/board.php?bo_table=free&wr_id=523
I’m not sure exactly why but this blog is loading extremely
slow for me. Is anyone else having this issue or is it a issue on my end?
I’ll check back later on and see if the problem
still exists. http://It.euroweb.ro/wiki/index.php/User:KatrinaElmslie1
Hey There. I found your blog using msn. This is a very well written article.
I will make sure to bookmark it and return to read more of your useful info.
Thanks for the post. I’ll definitely return.
Feel free to surf to my web blog New Member 100 Slot
Link exchange is nothing else but it is only placing the other person’s web
site link on your page at proper place and other person will also do same in favor of
you. http://IT.Euroweb.ro/wiki/index.php/User:JanetAustin
buy viagra online
2024 en iyi slot siteleri: deneme bonusu veren slot siteleri – slot siteleri 2024
After looking into a handful of the blog posts on your blog,
I really like your way of blogging. I saved as a favorite it to my bookmark website list and will be checking back in the near future.
Take a look at my website too and let me know how you feel.
Feel free to surf to my webpage – 비아그라구입
Whats up very nice web site!! Guy .. Beautiful ..
Superb .. I’ll bookmark your blog and take the
feeds also? I am satisfied to seek out numerous useful info here within the put up, we’d like develop extra techniques in this regard, thank you for sharing.
. . . . .
Review my webpage … alpha bites gummies reviews
Wow! This blog looks just like my old one! It’s on a entirely
different topic but it has pretty much the
same page layout and design. Wonderful choice of colors! https://www.Kenpoguy.com/phasickombatives/profile.php?id=2174341
Excellent, what a website it is! This weblog gives valuable information to us, keep it up.
Stop by my site – lottery defeated reviews
slot siteleri bonus veren: slot siteleri 2024 – slot siteleri
Hurrah! At last I got a weblog from where I be able to actually
take helpful data concerning my study and knowledge.
Here is my page :: home business opportunity
Here is my blog Daycares popular listings
hey there and thank you for your information – I have definitely picked up
anything new from right here. I did however expertise some technical points using this website,
as I experienced to reload the website a lot of times previous to I could get it to load properly.
I had been wondering if your web host is OK? Not that I’m complaining, but slow loading instances times will very frequently affect
your placement in google and could damage your quality score if ads and marketing with Adwords.
Anyway I’m adding this RSS to my email and can look out for a
lot more of your respective intriguing content. Ensure that
you update this again soon.
Have a look at my homepage :: memek
Преимущества перетяжки мягкой мебели, Советы по выбору ткани для перетяжки мебели, Какие стили актуальны в обновлении диванов, Как быстро и недорого освежить диван без перетяжки, Плюсы и минусы заказа перетяжки у мастера, и как выбрать лучшего мастера, и улучшить характеристики дивана
перетяжка мягкой мебели в минске перетяжка мягкой мебели в минске .
Link exchange is nothing else however it is just placing the other person’s web site link on your page at appropriate place
and other person will also do similar for you.
Stop by my web blog: Best modded games
wonderful issues altogether, you just won a new reader.
What might you recommend in regards to your put up that you just made a few days ago?
Any certain?
my blog aviator (telegra.ph)
I think the admin of this web page is genuinely working hard for his web
site, for the reason that here every information is quality based information.
my page house inspections near me
It’s a pity you don’t have a donate button! I’d most certainly donate
to this outstanding blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account.
I look forward to fresh updates and will share this site with my Facebook group.
Chat soon!
Feel free to surf to my webpage … ngentot anjing
Thanks to my father who shared with mme cincerning this blog, thiis blog is really amazing.
KPOPB2B
2024 en iyi slot siteleri: guvenilir slot siteleri – guvenilir slot siteleri 2024
7 Helpful Tips To Make The Most Of Your Drip Coffee
Drip coffee Maker
Then, you will nwed to have to input the total amouhnt you would like to refinance and for how several months.
Feel free to visit my site :: http://Guardianembroidery.Com/
deneme veren slot siteleri: deneme bonusu veren slot siteleri – deneme bonusu veren slot siteleri
This post offers clear idea for the new visitors of blogging, that actually how to do blogging.
Check out my web page – A片
Incredible points. Solid arguments. Keep up the good spirit.
Also visit my web site :: phenq
The writer is called Tod though he doesn’t actually
like being called prefer this. For a while she’s been in North
Carolina and she will never action. Hiring is my profession. What her family and her love is bottle tops collecting
and now she is hoping to earn with it.
my webpage; registration presonal area
slot casino siteleri: yeni slot siteleri – slot oyunlar? siteleri
Lauren Reep is the name I in order to be called with horrifying than love the product.
One of his favorite hobbies is to cycle and they is envious it an occupation. Hiring is how
i make money and I am think I’ll change it anytime soon.
North Carolina is where our family is so don’t keep in mind changing it again.
my blog post exness
купить в москве силиконовую секс куклу
https://infosex-blog-info.ru
купить силиконовую секс куклу
What’s The Current Job Market For Truck Crash Attorney Professionals?
truck accident lawyers albuquerque (Blanche)
Great article! That is the type of information that are meant
to be shared across the net. Shame on the search engines for not positioning this
post upper! Come on over and talk over with my web site .
Thank you =)
my blog; 成人視頻
Thanks very nice blog!
my web-site :: the billionaire brain wave review
Hello There. I found your blog using msn. This is a really well written article.
I’ll be sure to bookmark it and return to read more of your useful information.
Thanks for the post. I’ll certainly comeback.
Here is my site: پوشش ضد حریق
http://sweetbonanza.network/# sweet bonanza yorumlar
Way cool! Some extremely valid points! I appreciate you penning this article plus the rest of the website is extremely good.
Look at my blog post :: nitric boost pills vs powder
When you have excellent credit, you deserve a low-interest,
fixed-rate Student Loan without the
need off fees.
Who’s The Top Expert In The World On Coffee To Bean Machine?
the best bean To Cup coffee machines
15 Facts Your Boss Would Like You To Know You Knew About Can Anxiety Cause
Reflux Symptoms symptoms of breath holding anxiety (injeonghrm.Co.kr)
This is really interesting, You’re a very skilled blogger.
I’ve joined your feed and look forward to seeking more of your excellent
post. Also, I have shared your web site in my social networks!
my blog … mom hot xx, http://www.kronfonster.se,
I seriously love your website.. Very nice colors & theme.
Did you make this site yourself? Please reply back as I’m looking
to create my very own website and would love to know where you got this from or exactly what
the theme is named. Kudos!
my web blog; hsv cure
slot oyun siteleri: slot siteleri bonus veren – en guvenilir slot siteleri
Very quickly this web page will be famous amid all blog visitors, due to it’s pleasant articles or reviews
My web site … Nerve Shield Pro
Hello i am kavin, its my first occasion to commenting anyplace, when i read this post i thought i could also make comment due
to this brilliant article.
Also visit my web page Bazi
Amazing! Its really amazing post, I have
got much clear idea concerning from this piece of writing.
Take a look at my web blog :: The Growth Matrix Reviews
Hi there, after reading this remarkable paragraph i am as well delighted to
share my familiarity here with mates.
Also visit my web blog :: porn facial abuse