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/
It’s The Perfect Time To Broaden Your How To Get Diagnosed
With ADHD UK Options add diagnosis as an adult
10 Myths Your Boss Has Concerning Severe Depression Physical Symptoms Physical Symptoms Of Depression
What i don’t understood is in fact how you are no longer really a lot more well-liked than you mmay be now.
You’re very intelligent. You recognize thus significantly
in terms of this subject, produfed me for myy part belioeve it from a lot of varied angles.
Its like men andd women aren’t fascinated unless itt is
something to accomplish with Lady gaga! Your personal stuffs excellent.
All the time care for iit up!
인스타 좋아요
The Leading Reasons Why People Are Successful In The Mesothelioma
Attorney Industry mesothelioma lawsuit
Bandar Online Togel Tips From The Most Successful In The Business bandar
togel terpercaya – Celia –
Excellent web site you have here.. It’s hard to find high quality writing like yours nowadays.
I really appreciate individuals like you! Take care!!
my webpage … https://health-lists.com/story18525163/emprunts-d-argent-rapide-sans-enquête-de-Crédit-money911
Hello everyone, it’s my first visit at this site, and post is truly fruitful
for me, keep up posting such content.
Also visit my web-site … Fast Ranking #1 Blackhat Link by Telegram @web_shellseo
What’s The Current Job Market For Treadmill With Incline
Uk Professionals Like? Treadmill With Incline Uk
This is very interesting, You’re a very skilled blogger.
I’ve joined your rss feed and look forward to seeking more of your excellent post.
Also, I’ve shared your website in my social networks!
Look into my blog post :: evisa vietnam
We stumbled over here different web address and thought I might check things out.
I like what I see so i am just following you. Look forward
to going over your web page again.
Here is my web site Danae
There is definately a great deal to know about this
issue. I like all of the points you made.
Here is my web page – Pcsq28.com
Can you tell us more about this? I’d want to find out more details.
Have a look at my website: Source URL
en iyi slot siteleri: slot casino siteleri – slot oyunlar? siteleri
I appreciate, result in I found exactly wha I was
looking for. You have ended my four day lengthy hunt!
God Bless youu man. Have a nice day. Bye
중고차 장기렌트
Hi it’s me, I am also visiting this site daily, this site is truly fastidious and the people are really sharing
pleasant thoughts.
My blog post … ngentot pembantu
What’s up, I log on to your new stuff like every week.
Your writing style is awesome, keep up the good work!
Feel free to visit my homepage: https://Intern.ee.aeust.edu.Tw
Excellent website you have here but I was wondering if you
knew of any user discussion forums that cover the same
topics discussed in this article? I’d really like to be a
part of group where I can get advice from other experienced people that
share the same interest. If you have any suggestions,
please let me know. Thanks!
Here is my webpage … 송파출장마사지
Hello There. I found your blog using msn.
This is an extremely well written article. I will be sure to bookmark it and return to read more of your useful
info. Thanks for the post. I’ll definitely return.
Stop by my site https://Www.Kenpoguy.com/phasickombatives/profile.php?id=2193497
What a material of un-ambiguity and preserveness of precious know-how on the topic of unexpected
emotions.
Take a look at my web blog … Ginger
I every time used to read paragraph in news papers but now as
I am a user of web so from now I am using net for posts, thanks
to web.
Also visit my blog; Avis
Amazing! Its genuinely remarkable paragraph, I have got much clear idea on the topic of from this piece of writing.
My website; 오산출장안마
See What Situstoto Slot Tricks The Celebs Are Making Use Of situstoto slot (Arletha)
Just desire to say your article is as surprising.
The clarity in your publish is simply nice and i can think you are an expert
on this subject. Well along with your permission allow me to take hold
of your RSS feed to stay up to date with forthcoming post.
Thanks one million and please carry on the rewarding work.
Look into my webpage: meal ideas – dev.to
–
I enjoy looking through a post that will make people think.
Also, thanks for permitting me to comment!
Feel free to surf to my website – https://scientific-Programs.science/wiki/The_Power_Source_for_Emergency_Situations_Understanding_Diesel_Generators_For_Black_Start_Capability
Everything is very open with a really clear description of the issues.
It was really informative. Your website is extremely helpful.
Many thanks for sharing!
Also visit my web page; Mozillabd.science
Valuable info. Fortunate me I discovered your website accidentally, and I am stunned why this twist
of fate did not took place in advance! I bookmarked it.
Also visit my website: сайт тор кракен
Everything is very open with a really clear clarification of the challenges.
It was truly informative. Your website is useful. Thank you for sharing!
my blog post … SEO Affiliate Domination
Wonderful goods from you, man. I have be aware your stuff prior to
and you’re simply extremely excellent. I actually like what you’ve acquired here, really like what you
are stating and the way in which through which you say it.
You are making it entertaining and you still care for to keep it smart.
I can’t wait to read far more from you. That is actually a terrific website.
Look at my web blog: Slot Deposit Bri 24 Jam
I like the valuable info you supply in your
articles. I’ll bookmark your weeblog and check once more right here
frequently. I am somewhat sure I’ll be informed
plenty of new stuff propler right here! Best of luck
for the next!
투데이서버
Thank you for sharing your info. I really appreciate your efforts and I am waiting for your further write ups thanks once again.
my web page :: caluanie muelear oxidize türkiye
Very good blog! Do you have any suggestions for aspiring writers?
I’m planning to start my own site soon but I’m a little lost on everything.
Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m completely confused ..
Any ideas? Cheers!
Here is my website :: sex indo viral
Do you have a spam issue on this site; I also am a blogger, and I was curious
about your situation; we have developed some nice practices and we
are looking to exchange methods with other folks, please
shoot me an email if interested.
Also visit my blog :: خط چشم حرفه ای ماژیکی مای میکاپ استوری مدل Point Out
I read this paragraph fully concerning the resemblance of latest and
preceding technologies, it’s awesome article.
Here is my blog post Fast Ranking #1 Blackhat Link by Telegram @web_shellseo
5 Killer Queora Answers On Panties Vibrator Clit panty Vibrator
Hi there, I think your web site might be having web browser compatibility
issues. Whenever I look at your site in Safari, it looks fine however when opening in I.E.,
it has some overlapping issues. I simply wanted to give you a quick heads up!
Other than that, wonderful blog!
Here is my blog :: bath remodel
секс шоп игрушки
https://sex-blog-info.fun
купить хороший фаллоимитатор
Great post! We will be linking to this great content on our site.
Keep up the great writing.
Here is my web-site … italian recipes (andy-chef-fvgd.blogspot.com)
20 Trailblazers Setting The Standard In Situs Togel
Terpercaya bandar Toto
Incredible points. Sound arguments. Keep up the great spirit.
My site :: lottery defeater software free
It’s really a cool and helpful piece of information. I am happy that
you shared this useful information with us. Please stay us informed like this.
Thank you for sharing.
Feel free to surf to my webpage … https://pafikotamuna.org
Who Is Lexus Key Maker And Why You Should
Be Concerned Lexus key fob Cost
The Advanced Guide To Mesothelioma mesothelioma legal (Trinidad)
Everything is very open with a clear clarification of the issues.
It was truly informative. Your site is useful.
Thanks for sharing!
Also visit my site Eden
Wⲟw, this paragгaph is good, my sisxter iis analyzing these kinds of things, thus I am going too let
know һer.
Feеel free tο surf to my blog post citrix training courses
mtpolice.kr provides sports betting information, sports
analysis, and sports tips as a sports community.
Also visit my web-site: 먹튀검증업체 순위
Hi there friends, its great paragraph on the topic of
tutoringand completely defined, keep it up all the time.
Here is my web blog :: couvreur autour de moi
Undeniably believe that which you said. Your favorite justification appeared
to be on the web the simplest thing to be aware of. I say to you,
I definitely get irked while people consider worries
that they plainly do not know about. You managed to hit the nail upon the top as well as defined out the
whole thing without having side-effects , people
could take a signal. Will probably be back
to get more. Thanks
Take a look at my blog 토토사이트 추천
What’s up, the whole thing is going fine here and ofcourse every one is sharing
facts, that’s genuinely excellent, keep up writing.
Visit my web-site … Eula
I absolutely love your website.. Great colors & theme.
Did you build this web site yourself? Please
reply back as I’m hoping to create my own personal site and want to learn where
you got this from or what the theme is named.
Many thanks!
Feel free to visit my web page … moz1278343req
I wanted to thank you for this very good read!!
I certainly loved every bit of it. I’ve got you book marked to look at new
stuff you post…
Stop by my web-site; Noemi