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/
Are You Sick Of Hyundai I20 Key Fob? 10 Inspirational Ideas To Revive Your
Passion 2008 hyundai santa fe key fob (Albertina)
Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam remarks?
If so how do you protect against it, any plugin or anything you can recommend?
I get so much lately it’s driving me mad so any assistance is very much appreciated.
Check out my site Help for Thesis Writing
7 Secrets About 2 In 1 Highchair That Nobody Can Tell You
Multifunctional Pram
Let me reveal you in my testimonial of NewULife.
Also visit my page; Bookmarks
Its like you learn my mind! You seem to grasp a lot approximately this, such
as you wrote the ebook in it or something. I feel that you can do
with a few percent to power the message home a little bit, but other than that, this is
great blog. A great read. I’ll definitely be back.
my web site; Keystones Realty
The No. Question Everybody Working In Double Glazing Supplies Near Me Must Know
How To Answer Upvc doors repair
Call Arizona insolvency law workplace currently.
My website :: bookmarks
That is a really good tip especially to those fresh to the blogosphere.
Brief but very accurate information… Thank you for sharing this
one. A must read post!
Also visit my web page Keystones Realty
The larger Slim battery, excellent for longer runtimes.
Here is my web blog; foil drive assist max
An outstanding share! I have just forwarded this onto a coworker who had been doing a little homework
on this. And he actually ordered me dinner because I stumbled upon it for him…
lol. So let me reword this…. Thanks for the meal!!
But yeah, thanks for spending time to discuss this issue here on your blog.
Feel free to surf to my blog post: Prestige Raintree park
Hi there, I found your site via Google whilst looking for a related matter,
your web site got here up, it appears great. I have bookmarked it in my google bookmarks.
Hi there, simply became alert to your blog through Google, and located that it’s really informative.
I’m gonna watch out for brussels. I will appreciate if you proceed this in future.
Many other people can be benefited out of your writing.
Cheers!
my website – Prestige Raintree park
8 Tips To Enhance Your Ford Spare Key Game replacement Key Ford
Excellent blog here! Also your website loads up very fast!
What host are you using? Can I get your affiliate link to your host?
I wish my web site loaded up as quickly as yours lol
Check out my web site: Keystones Realty
https://easydrugrx.com/# online pharmacy florida
online pharmacy europe
pharmacy selling viagra: online pharmacy reviews viagra – erythromycin pharmacy
10 Sites To Help You To Become A Proficient In ADHD Adult Test online tests for adhd
Coupon codes have an expiration date which is to be determined
by Five CBD. You could also explore coupon codes from
other popular stores like High Cannabis Culture,
FOCL, Blue Moon Hemp, ERTH CBD, Potluck Expo, Maddyn, Royal Elite Cannabis and Whole Botanics .
The antioxidant and antimicrobial activity of CBD can assist in delaying the signs of aging while preventing the appearance
of skin defects like psoriasis, acne and dark spots. In the last week, Slickdeal
shoppers have saved using our verified Five
CBD coupon codes in 2023. Within the entire month of June, our online shoppers have saved while checking out on Five cbd coupon code.
But not all C. sativa plants contain much THC: Those that do are considered marijuana,
while those that don’t are called hemp. To successfully alleviate tension and anxiety, you should vape with just the right amount of nicotine, neither
too much nor too little.
https://trezosuite.com
Do you have a spam problem on this blog; I also am a blogger, and I
was wondering your situation; we have created some nice methods and we are looking to trade strategies with others, why not
shoot me an email if interested.
my web-site :: Keystones Realty
A wide range of payment approaches can be applied, which includes PayPal and Apple Spend.
My webpage 슈어맨
When someone writes an piece of writing he/she keeps the thought of a user in his/her mind that how a user can know it.
Thus that’s why this article is great. Thanks!
Feel free to surf to my blog – Prestige Raintree park
Just desire to say your article is as amazing. The clarity
to your submit is just great and that i can think you’re an expert in this subject.
Fine with your permission let me to seize your feed to keep up to date with
impending post. Thank you one million and please keep up the enjoyable work.
Feel free to visit my site; 騎乗位
Thanks for sharing your thoughts about MPOJAYA link.
Regards
My web page :: mpojaya link alternatif
https://pharm24on.com/# online pharmacy usa viagra
people’s pharmacy bupropion
A motivating discussion is definitely worth comment. I do
believe that you ought to publish more about this subject,
it might not be a taboo matter but generally folks don’t talk about these
issues. To the next! Best wishes!!
my web-site – кракен наркомагазин
See What Mobility Scooters On Road Or Pavement Tricks
The Celebs Are Making Use Of mobility scooters on road or pavement
Good way of describing, and pleasant post to
take facts on the topic of my presentation focus, which i am going to present in university.
my webpage: Keystones Realty
They have items to offer or solutions to use.
Feel free to visit my site … european auto repair near me
Ветошь – это старые тряпки, которые обрели новую жизнь благодаря мастерам искусства.
В Санкт-Петербурге ветошь стала неотъемлемой
частью многих художественных проектов и мастерских.
Мастера создают из нее удивительные вещи – ковры,
сумки, одежду, аксессуары. Они используют ветошь как
материал для творчества, придавая ей новую
жизнь и статус.
ветошь белая купить
Does your site have a contact page? I’m having a tough time locating it but, I’d
like to send you an e-mail. I’ve got some creative ideas for
your blog you might be interested in hearing. Either way, great blog and I look
forward to seeing it grow over time.
My site :: Keystones Realty
A synthetic USP human growth hormone (somatropin).
Feel free to surf to my web blog :: texas ranch wedding venues
The History Of Collapsible Mobility Scooters collapsible scooters
for disabled – Jacklyn –
I got this site from my friend who shared with me regarding this web page and at the
moment this time I am browsing this site and reading very informative
articles at this place.
Here is my web-site; Keystones Realty
Helpful info. Lucky me I found your website accidentally, and I’m surprised why this
accident didn’t happened earlier! I bookmarked it.
My web page; Bitcoin Synergy
Right here is the perfect webpage for anyone who wants to understand this topic.
You realize a whole lot its almost hard to argue with you (not that
I really will need to…HaHa). You definitely put a new spin on a topic which has been discussed
for ages. Wonderful stuff, just great!
Here is my web-site :: Prestige Raintree park
A Coffee Pods Machine Success Story You’ll Never Remember coffee Pods machines
Why Do So Many People Are Attracted To SEO London? local seo consultant london
USP human development hormonal agent (somatropin).
My blog; ceramic pottery repair near me
10 Sites To Help You To Become A Proficient In Window Repair Milton Keynes locksmiths milton keynes
Portable vaporizers utilize batteries as a power source.
Also visit my blog where to buy plant based meals
20 Insightful Quotes About Mobility Scooter To Buy 6699101.xyz
11 “Faux Pas” You’re Actually Able To Create With Your Triple Single
Bunk Bed Single Triple Bunk Bed
I’m really enjoying the design and layout of your website.
It’s a very easy on the eyes which makes it much more
enjoyable for me to come here and visit more often. Did you hire out a designer to
create your theme? Superb work!
My web blog: Keystones Realty
After I initially commented I seem to have clicked
the -Notify me when new comments are added- checkbox and from now
on each time a comment is added I recieve 4 emails with
the same comment. Is there an easy method you are able to remove me from that service?
Appreciate it!
Also visit my blog post … Keystones Realty
If you wish for to grow your knowledge only keep visiting this website and be updated
with the most up-to-date gossip posted here.
Feel free to surf to my webpage; SEO Services Philippines
5 Killer Quora Answers On Local SEO Agency London Search Engine Optimization London
I think that what you published was very reasonable. But, think
on this, what if you were to create a awesome headline?
I mean, I don’t wish to tell you how to run your blog, however what if you added a headline that makes
people desire more? I mean 3 Ways Technology is Impacting Distribution is kinda plain. You could peek at Yahoo’s front page and note how they create article titles
to grab people to click. You might add a related video or a
related pic or two to grab readers interested about what you’ve written. Just my opinion, it could make
your blog a little bit more interesting.
Also visit my homepage; bandar toto macau
Fucked out of my knickers.
One day I was travelling with my brother Artyom in the car.
He’s a year older than me. We were following his friends to celebrate his
driving licence. The party was going to be at the dacha.
Artem told me to sit in the back seat when his three friends got in.
I was sandwiched between two of them.
My web blog :: Modelka
The vapor and flavor top quality is additionally terrific.
My web blog – Bookmarks
They have products to offer or services to offer.
Feel free to surf to my webpage; ranch wedding venues texas