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/
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They’re less smooth and even than machine-sanded surfaces.
If you want to start or add to your antiques collection, there are some reliable places to look for them.
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All the costs of Medicare are not completely covered by
what you set in over your lifetime. Forex faces the particular challenge of being depended on logistical hurdles that come with being an over the
counter type of market trading.
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The stock market is a place where commodities, equities and
other investments can be bought as well as sold. There are multiple benefits that
an investor can reap by investing his money into mutual funds as compared
to other choice of investments.
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Your partnership with your real estate agent is no different.
HUD. “Interview with Real Estate Brokers.” U.S.
Rioux, Pat. “Nine Ways A Bad Real Estate Agent Can Cost You Money” International Real Estate Digest.
Total Real Estate Solutions. Commercial mortgage-backed securities are for commercial
real estate, such as malls or office complexes.
Picture those poor Girl Scouts going door-to-door with their Thin Mints and Samoas:
half the people aren’t home; six homeowners just went on a diet; and the competition is stiff (Becky and Nancy
are working the same turf!).
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These legal guidelines usually function by permitting a defendant
to file a motion to strike or dismiss on the grounds that
the case entails protected speech on a matter of public
concern. To ensure a free movement of funds on Monday, the new York Clearing House issued $one hundred million in loan certificates to be traded between banks to
settle balances, allowing them to retain money reserves for depositors.
In addition to the main and Secondary Market, there’s a Corporate participation certificates Market (corporate
bonds). The fall season was all the time a weak time for the banking system-mixed with the roiled inventory market, even a small shock may
have grave repercussions. At 1:30 p.m. Thursday, October 24, Ransom Thomas,
the president of the new York Stock Change, rushed to Morgan’s workplaces to inform him that he would have to close the
exchange early. The committee issued a scathing report
on the banking trade and located that the officers of J.
P. Morgan & Co. additionally sat on the boards of directors of 112
firms with a market capitalization of $22.5 billion (the total capitalization of the new
York Stock Exchange was then estimated at
$26.5 billion). The chair of the Home Committee
on Banking and Currency, Consultant Arsène Pujo (D-La.
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The additional models are created are place within the managers box for future
purchasers. For an open-finish fund, there may be an initial cost levied on the acquisition of models or shares this
covers dealing costs, and commissions paid to intermediaries or salespeople.
When heavy selling occurs items are liquidated from the managers field
to protect the existing buyers from the increased dealing costs.
Accidental death and Advert&D insurance policies pay precise benefits
solely very rarely, both because the cause of death shouldn’t be coated by the policy or as a result of death occurs well after the accident, by which time the premiums have gone unpaid.
Many types of funding will not be readily salable on the open market
(e.g. business property) or the market has
a small capability and investments may take time
to promote. Standard deviation is a measure of volatility of
the fund’s performance over a period of time. And a few measure other things apart from what’s happening in the economy.
R-squared is a measure of the association between a
fund and its benchmark. Beta represents an estimate
of how much the fund will transfer if its benchmark strikes by
1 unit.
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In the early-morning hours of June 15, an EF2 tornado struck Lushton, Nebraska,
causing in depth tree injury and destroying grain bins in and
around town. On the afternoon of July 6, a damaging high-end EF2 twister struck the city of Goshen, Ohio and
brought on vital damage to buildings, injuring
two people. Warren, Tom (July 16, 2012). “Workplace 2013 drops help for Windows XP and Home windows Vista”.
Weights of Building Materials Archived Might 16, 2011, on the Wayback Machine Boise Cascade Engineered Wood Merchandise Tech Note
GE-1, p. The company instantly marketed its products to households;
small- to medium-sized businesses and enterprises, in addition to
through on-line distribution; client-electronics and office-supply retailers; software program
partners; and major technology distributors. At that time, the insurance coverage company begins paying 80% and the employee is liable for
the remaining 20% of all medical bills. An insurance coverage business and an office constructing sustained total roof loss and
collapse of their exterior walls, the native fireplace station was considerably broken, and
autos had been broken by flying debris. A big truck and a few storage tanks were
knocked over, farming gear was damaged, energy poles have been snapped, and timber had
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But the fact is, we can earn a lot more profit if we invest the same amount in the share market.
Nonetheless, by using Bitcoin charts traders can know when the
right time to enter into the market is and what is the duration they need
to stay in for profit booking. Needless to say it is the right time you understand the
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