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/
Hmm is anyone else experiencing problems with the
images on this blog loading? I’m trying to determine if its a problem on my end or if it’s
the blog. Any feed-back would be greatly appreciated.
my blog post :: cash for diabetic test strips
This is a topic that is close to my heart… Take care!
Exactly where are your contact details though?
Also visit my web-site – yacht tour dubai
May I just say what a relief to uncover somebody that truly understands what they are
talking about on the internet. You actually understand how to bring an issue to light and make it
important. More and more people ought to check this out and understand this side of the story.
I was surprised that you aren’t more popular because you definitely have the gift.
my web page :: meslot202
It’s an amazing article designed for all the web people; they will
obtain benefit from it I am sure.
Look at my blog post – funeral service
Ahaa, its fastidious conversation about this post here at this
website, I have read all that, so now me also commenting at this place.
Feel free to visit my webpage – Mostbet
Hi there! This is my 1st comment here so I just wanted to give a quick shout out and say I truly enjoy reading your posts.
Can you suggest any other blogs/websites/forums that cover the
same topics? Thanks a lot!
Look at my web-site … Keystones Realty
My programmer is trying to convince me to move to .net from PHP.
I have always disliked the idea because of the costs. But he’s
tryiong none the less. I’ve been using WordPress on numerous websites for about
a year and am anxious about switching to another platform.
I have heard good things about blogengine.net. Is there a way I can import all my wordpress posts into it?
Any help would be greatly appreciated!
Here is my web site: เกมXOXO CLUB
دکتر محمد علی اکبری
I am regular visitor, how are you everybody? This piece of writing posted at this web site is really pleasant.
Also visit my web-site :: top picks reviews
My partner and I absolutely love your blog and find most of your post’s to be
exactly I’m looking for. Would you offer guest writers to write content
to suit your needs? I wouldn’t mind composing a post or elaborating on a lot of the
subjects you write concerning here. Again, awesome web log!
Look at my website: additional info
I used to be suggested this website by way of my cousin. I’m not sure whether or not this
put up is written by means of him as nobody else recognize such
specific approximately my problem. You are incredible!
Thank you!
my page :: herren gym kleidung
Wow, that’s what I was searching for, what a stuff! existing here at this weblog,
thanks admin of this website.
Also visit my webpage; สล็อตWINK24
Greate article. Keep writing such kind of info on your page.
Im really impressed by it.
Hey there, You have performed an incredible
job. I will certainly digg it and in my view recommend to my friends.
I’m confident they’ll be benefited from this site.
Also visit my site; bokep kontol
Simply desire to say your article is as astonishing. The clarity in your post is simply cool and i can assume you are an expert on this subject.
Well with your permission allow me to grab your RSS
feed to keep up to date with forthcoming post.
Thanks a million and please continue the gratifying work.
my blog post xem phim truyện
metronidazole uk pharmacy: online pharmacy meds – provigil online pharmacy reviews
This is really interesting, You’re a very skilled blogger.
I have joined your feed and look forward to seeking more of your
excellent post. Also, I’ve shared your site in my social
networks!
Also visit my webpage :: walther concealed carry 9mm
There’s definately a great deal to know about this issue.
I really like all of the points you’ve made.
My web blog gym kleidung herren
ChatGPT c’est l’endroit idéal pour discuter et interagir avec l’intelligence artificielle.
Venez découvrir le monde fascinant de la conversation avec des robots intelligents.
My site … agent Conversationnel
I think the admin of this website is truly working hard in favor of his website, because here every information is quality based material.
Feel free to surf to my site kwg game login
This Is The History Of UK Pornstar In 10 Milestones
Top Uk Pornstars [Aviator-Games.Net]
Sahabet Casino’da yeni oyuncular, eşsiz fırsatları alarak oyun keyfini
çıkarabilir. Popüler slot oyunları Sahabet’te büyük kazançlar sunuyor.
En yüksek bonusları toplayın ve 500% bonus elde edin. Sahabet, yeni
yılda kazandıran kumarhane olarak dikkat çekiyor.
I think this is among the most vital info for me.
And i am glad reading your article. But wanna remark on few general things, The website style is ideal, the articles is really great :
D. Good job, cheers
Feel free to visit my homepage :: gym kleidung herren sale
Please let me know if you’re looking for a author for your site.
You have some really great articles and I believe I would be a good asset.
If you ever want to take some of the load off, I’d love to write
some material for your blog in exchange for a link back to mine.
Please blast me an email if interested. Kudos!
my webpage เกมสล็อตZ16
My blog post :: Find top-rated certified Daycares in your area
https://onlineph24.com/# legit online pharmacy klonopin
online pharmacy no prior prescription
Have you ever considered publishing an e-book or guest authoring on other
sites? I have a blog based on the same subjects you discuss and would love to have you share some stories/information.
I know my visitors would value your work. If you are even remotely interested,
feel free to shoot me an email.
Also visit my blog post SEO Services Philippines
You can certainly see your enthusiasm within the article you write.
The world hopes for even more passionate writers like you who aren’t afraid to
say how they believe. At all times follow your heart.
Here is my homepage; kawaii japanese clothing
https://pharm24on.com/# united states pharmacy viagra
lisinopril online pharmacy
Incredible story there. What occurred after? Thanks!
Feel free to visit my web blog: aircond inverter
Have you ever thought about creating an e-book or
guest authoring on other websites? I have a blog based upon on the same subjects you discuss and
would love to have you share some stories/information. I know my visitors would value
your work. If you’re even remotely interested, feel free to shoot me an e mail.
Also visit my webpage znaczki pocztowe
This paragraph is genuinely a pleasant one it helps new internet visitors,
who are wishing for blogging.
my blog post … dpo
You could certainly see your skills within the work you write.
The sector hopes for more passionate writers such as you who are not afraid to mention how they believe.
At all times follow your heart.
My web-site … Pasang IndiHome Aja
https://onlineph24.com/# in house pharmacy propecia
safeway pharmacy (inside safeway)
Incredible points. Solid arguments. Keep up the great spirit.
Review my web site – cuckoo washing machine
You could definitely see your enthusiasm within the article you
write. The arena hopes for even more passionate
writers such as you who aren’t afraid to mention how they believe.
All the time follow your heart.
Here is my blog post; http://Forum.altaycoins.com/viewtopic.php?id=1279968
Hey there! This is my first comment here so I just wanted to give
a quick shout out and tell you I genuinely enjoy reading your articles.
Can you recommend any other blogs/websites/forums that cover the same subjects?
Thanks!
my web blog; funeral service
target pharmacy zoloft price: Cefixime – provigil indian pharmacy
Heya! I understand this is somewhat off-topic but I had to ask.
Does operating a well-established website such as yours require a lot of work?
I am brand new to blogging but I do write in my diary everyday.
I’d like to start a blog so I will be able to share my personal experience and views online.
Please let me know if you have any kind of ideas or tips for brand new aspiring blog owners.
Thankyou!
my homepage link bokep
Hi, i think thaqt i saw you visited my site thus i
came to “return the favor”.I am attempting to find things to enhnce my web site!I suppose its ok to use solme of your ideas!!
야마하 디지털피아노
Hi fantastic website! Does running a blog similar to Visit This Link require a massive amount work?
I have virtually no understanding of programming however I had been hoping
to start my own blog soon. Anyway, if you have any recommendations or techniques for
new blog owners please share. I understand this is off subject nevertheless I
just needed to ask. Appreciate it!
I blog often and I truly appreciate your content.
This article has really peaked my interest. I’m going to book
mark your blog and keep checking for new details about once per week.
I opted in for your Feed too.
Feel free to visit my web site … Small Business Accountants Birmingham
Hi would you mind letting me know which web host you’re utilizing?
I’ve loaded your blog in 3 completely different web browsers and I must say
this blog loads a lot faster then most. Can you recommend a good hosting provider at a honest price?
Thanks, I appreciate it!
Feel free to surf to my web page Graphic Tees Women
There is certainly a lot to learn about this subject.
I love all the points you made.
Also visit my website; tele adictos
Great goods from you, man. I’ve understand your stuff
previous to and you are just extremely wonderful. I actually like what you’ve acquired here, really like what you are saying and the way in which you
say it. You make it entertaining and you still care for to
keep it smart. I cant wait to read much more from
you. This is really a great site.
Also visit my webpage – gym kleidung herren sale
Hey there outstanding website! Does running a
blog similar to this take a lot of work? I’ve virtually no understanding of computer programming however I was hoping to start my own blog in the near future.
Anyhow, if you have any suggestions or techniques for
new blog owners please share. I know this is off topic but I simply needed to ask.
Appreciate it!
Review my blog post ทางเข้าเล่นRED 1688 สล็อต
https://drstore24.com/# pharmacy rx coupons
Isoptin SR
What’s The Current Job Market For Foldable Mobility
Scooters Professionals Like? Foldable Mobility scooters
anjir lah mantap sekali film bokep ini. karena ini adalah tentang perkosa
anak kecil terbaik yang pernah ada. saya nonton di situs ini porn child
You actually make it seem really easy together with your presentation however I
in finding this topic to be actually one thing which I feel I’d
never understand. It sort of feels too complicated and very vast for me.
I’m taking a look ahead on your next put up, I’ll attempt to get the hold of it!
my site; click for more,
First off I want to say awesome blog! I had a quick question which I’d like
to ask if you do not mind. I was curious to find out
how you center yourself and clear your mind before writing.
I’ve had difficulty clearing my thoughts in getting my ideas out there.
I do enjoy writing however it just seems like the first 10
to 15 minutes are generally lost simply just trying to figure out how to begin. Any ideas or tips?
Kudos!
my web blog … iptv france