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 know this if off topic but I’m looking into starting my own weblog and was wondering what all is needed
to get setup? I’m assuming having a blog like yours would cost a pretty penny?
I’m not very web smart so I’m not 100% sure. Any tips or advice would be greatly appreciated.
Thanks
Feel free to visit my blog post: snoopy and woodstock
Excellent article. Keep posting such kind of information on your site.
Im really impressed by your blog.
Hey there, You have done an incredible job. I’ll definitely
digg it and individually suggest to my friends. I am confident
they will be benefited from this site.
Here is my page: mpo gacor
Is Situstoto Slot The Best There Ever Was? Situs Toto
It’s amazing in favor of me to have a website, which is valuable in favor of my
know-how. thanks admin
Also visit my site پوشش ضد حریق
Your style is unique in comparison to other people I’ve read stuff from.
I appreciate you for posting when you have the opportunity, Guess I will just bookmark
this site.
Feel free to surf to my page – lottery defeated software
I know this if off topic but I’m looking into starting my own blog and
was wondering what all is required to get setup? I’m assuming having a blog like yours would cost a pretty penny?
I’m not very web smart so I’m not 100% sure. Any recommendations or advice would be greatly appreciated.
Cheers
My web site; find more
Hey very nice site!! Guy .. Beautiful ..
Amazing .. I’ll bookmark your web site and take the feeds also?
I’m glad to find so many helpful information here within the submit, we need
work out more strategies on this regard, thanks for sharing.
. . . . .
Feel free to surf to my site – xxx mom son fuck HD movies
https://sweetbonanza.network/# sweet bonanza hilesi
If you desire to grow your experience only keep visiting this website and be updated with the hottest information posted here.
My website … sibbet
This Is The Complete Guide To Providence Mesothelioma Lawyer Best Mesothelioma lawyers Texas
It’s very easy to find out any topic on net as compared to
books, as I found this post at this web site.
Feel free to visit my web-site :: redtube blonde
Hurrah! After all I got a website from where I be able to truly obtain valuable data
regarding my study and knowledge.
my webpage … 인천출장안마
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time
a comment is added I get three e-mails with the same comment.
Is there any way you can remove me from that service?
Cheers!
Also visit my website SEO Services Philippines
hi!,I like your writing so so much! proportion we keep up a correspondence more about your
post on AOL? I need an expert on this area to unravel
my problem. May be that’s you! Having a look forward to see you.
Also visit my web site nitric boost ultra
It’s truly very difficult in this full of activity life
to listen news on TV, therefore I simply use the web for
that reason, and obtain the hottest news.
My web site; Ichinose Ameri
купить секс куклу в полный рост
https://prosex-blog-info.ru
купить силиконовую секс куклу
It’s an amazing piece of writing designed for all the internet people; they will obtain advantage from it I am sure.
Also visit my homepage: Débarras après déménagement Albertville
I was wondering if you ever considered changing the layout of your site?
Its very well written; I love what youve got to say. But maybe you could a little
more in the way of content so people could connect with it better.
Youve got an awful lot of text for only having 1 or 2 images.
Maybe you could space it out better?
my webpage kwg game
buy viagra online
I really like your blog.. very nice colors & theme. Did you make
this website yourself or did you hire someone to do it for you?
Plz reply as I’m looking to construct my own blog and would like to know where u got this from.
thanks a lot
Have a look at my site; herpesyl ebay
If you would like to increase your know-how only keep
visiting this website and be updated with the hottest information posted here.
My web-site :: phengold
These are actually enormous ideas in about blogging. You have touched some
nice points here. Any way keep up wrinting.
Here is my web-site post677294
It’s actually very complex in this active life to listen news on TV, so I just use internet
for that reason, and get the newest information.
Feel free to visit my page – PGSLOT444
Howdy very cool website!! Man .. Excellent .. Wonderful ..
I’ll bookmark your web site and take the feeds additionally?
I’m glad to find so many useful info here in the post,
we need work out extra techniques in this regard, thanks for sharing.
. . . . .
Also visit my web site helpful resources
canl? slot siteleri: slot oyunlar? siteleri – bonus veren slot siteleri
Wow that was unusual. I just wrote an incredibly long comment but after I clicked submit my comment didn’t appear.
Grrrr… well I’m not writing all that over again. Regardless,
just wanted to say superb blog!
Feel free to surf to my website; slot gacor
buy viagra online
Great blog here! Also your website loads up fast! What host
are you using? Can I get your affiliate link to your host?
I wish my website loaded up as quickly as yours lol
Also visit my web-site … alpha bites gummies reviews
en yeni slot siteleri: guvenilir slot siteleri – slot casino siteleri
Great goods from you, man. I’ve be aware your stuff previous to and you are simply extremely great.
I really like what you’ve bought right here, really
like what you are stating and the way in which in which
you assert it. You make it enjoyable and you continue to take
care of to keep it smart. I can not wait to read far more
from you. This is really a terrific site.
My page; important source
Hi there! I just would like to give you a huge thumbs up for the
great info you have right here on this post. I’ll be returning to your blog
for more soon.
my webpage … Situs Slot Winrate Tertinggi
I do not know whether it’s just me or if everybody else encountering issues with your blog.
It appears as if some of the written text on your content are running off the screen.
Can someone else please provide feedback and let me know if
this is happening to them as well? This could be a problem with
my browser because I’ve had this happen previously.
Many thanks
Feel free to visit my webpage: http://it.euroweb.ro/wiki/index.php/User:KennyCurtis5
I was wondering if you ever thought of changing the structure
of your website? Its very well written; I love what youve got to say.
But maybe you could a little more in the way of content so people
could connect with it better. Youve got an awful lot of text for only having
1 or two pictures. Maybe you could space it out better? https://Freshbookmarking.com/story17876296/pied-confort
You actually make it appear so easy along with your presentation however I find this topic to
be really something which I believe I’d by no means understand.
It seems too complex and very broad for me. I’m having a look forward to your subsequent put up,
I will try to get the grasp of it!
My website … read more
15 Shocking Facts About Cheap Single Memory Foam Mattress You’ve
Never Known amazon double mattress memory foam (Thad)
You really make it appear so easy with your presentation however I find this matter to be really one thing that I believe
I might never understand. It kind of feels too complex and extremely large for me.
I am taking a look ahead for your next publish, I’ll try to get the cling of it!
Feel free to visit my web page; Guys With low Libido
I’ll immediately snatch your rss feed as I can’t find your e-mail subscription hyperlink
or newsletter service. Do you have any? Kindly let me understand in order that I may just subscribe.
Thanks.
Feel free to surf to my web blog :: lottery powerball
With havin so much content and articles do you ever
run into any issues of plagorism or copyright infringement?
My website has a lot of exclusive content I’ve either authored myself or outsourced but it appears
a lot of it is popping it up all over the web
without my authorization. Do you know any techniques to
help reduce content from being ripped off? I’d certainly appreciate it.
Also visit my web site … Recommended Reading
I love what you guys are usually up too. Such clever work
and exposure! Keep up the great works guys I’ve added you guys to my blogroll.
Feel free to visit my web-site … Slot Adalah
you are in point of fact a excellent webmaster. The site loading
pace is amazing. It sort of feels that you are doing any unique trick.
In addition, The contents are masterwork. you’ve done a fantastic task on this subject!
My homepage – ngentot pembantu
Hi there everyone, it’s my first pay a visit at this web page, and paragraph is in fact fruitful for me, keep up posting these types of posts.
My web-site … post-87857
Right here is the right web site for anyone who hopes to understand this topic.
You understand so much its almost tough to argue with
you (not that I actually would want to…HaHa). You definitely
put a fresh spin on a subject which has been discussed for decades.
Wonderful stuff, just wonderful!
My website – kontol kuda
Thanks for sharing your thoughts on bokep indo. Regards
Also visit my site :: bokep viral
buy viagra online
Appreciate this post. Let me try it out.
Feel free to visit my web-site: alpha bites reviews
You’ll Be Unable To Guess Adult Adhd Assessment’s
Benefits Adhd Assessment
When someone writes an article he/she keeps the plan of a user in his/her brain that how
a user can be aware of it. So that’s why this piece of writing is great.
Thanks!
My web site; p67714
My brother suggested I would possibly like this website.
He was totally right. This submit truly made my day.
You cann’t imagine just how a lot time I had spent for this information! Thanks!
Here is my website :: Extra resources
Hey there, I think your blog might be having browser
compatibility issues. When I look at your blog site in Chrome,
it looks fine but when opening in Internet Explorer, it has
some overlapping. I just wanted to give you a quick heads up!
Other then that, awesome blog!
Also visit my web page :: More Help
This post provides clear idea designed for the new people
of blogging, that actually how to do blogging and site-building.
Feel free to visit my page helpful hints