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’m really enjoying the theme/design of your web site.
Do you ever run into any web browser compatibility issues?
A number of my blog readers have complained about my website
not working correctly in Explorer but looks great in Firefox.
Do you have any recommendations to help fix this problem?
My blog post Situs Judi Minimal Deposit 10rb
buy viagra online
Very energetic article, I loved that a lot. Will there be a part 2?
Also visit my homepage … b1 lottery login
ADHD Assessment Private Tips To Relax Your Everyday Lifethe Only ADHD Assessment Private Trick That Everybody Should Learn adhd Assessment private
Hi there i am kavin, its my first occasion to commenting anywhere, when i read this
post i thought i could also make comment due to this
sensible piece of writing.
Feel free to surf to my site :: 나트랑 출장마사지
My brother suggested I would possibly like this blog.
He used to be totally right. This post truly made my day. You cann’t imagine simply how much time
I had spent for this information! Thanks!
Feel free to visit my web blog; buy xanax online overnight
Your style is unique compared to other people I’ve read stuff
from. I appreciate you for posting when you’ve got the opportunity, Guess I will
just bookmark this web site.
Also visit my website testoprime reviews
Your Family Will Be Grateful For Having This Toto Online Terbaik Bandar Togel Terpercaya
Feel free to visit my blog – Pokertube – Watch Free Poker Videos & Tv Shows
14 Cartoons On Veleco Mobility Scooter Reviews Which Will Brighten Your Day veleco bike (Colleen)
united states online pharmacy: republic rx specialty pharmacy – how much is adipex at the pharmacy
It’s really a great and useful piece of info. I’m satisfied that you
just shared this helpful information with us.
Please stay us informed like this. Thank you for sharing.
my web-site เกมส์WINK24
See What Programing Car Keys Tricks The Celebs Are Using programing car keys
plant based vape canada-based
vapes have a host of prospective benefits.
Just desire to say your article is as surprising. The clarity in your post is just cool and i
could assume you’re an expert on this subject.
Well with your permission allow me to grab your feed to keep updated with forthcoming post.
Thanks a million and please keep up the gratifying work.
Feel free to surf to my blog post – Mostbet
Car Seat Inserts For Newborns Tools To Help You Manage Your Everyday Lifethe
Only Car Seat Inserts For Newborns Trick That Everybody
Should Be Able To Car Seat Inserts For Newborns
Greetings! I know this is kinda off topic nevertheless I’d figured I’d ask.
Would you be interested in exchanging links or maybe guest
authoring a blog post or vice-versa? My website discusses a lot of the same
subjects as yours and I believe we could greatly benefit from each other.
If you might be interested feel free to shoot me an e-mail.
I look forward to hearing from you! Fantastic blog by the
way!
Feel free to visit my page; c1 lottery login
I read this piece of writing fully on the topic of
the comparison of most up-to-date and preceding technologies, it’s awesome
article.
Feel free to surf to my web site :: สล็อตG2G
What’s up i am kavin, its my first occasion to commenting anywhere, when i read
this article i thought i could also make comment due to
this sensible paragraph.
Look at my web-site … Pasang IndiHome Aja
The answers will rest on fundamental principles relating to how the Constitution divides power amonhg Congress and the president.
Look into my page … Loan Calculator
If you have more than one front-runner, these additional questions can help you narrow it down.
My web page; https://mediawiki.aqotec.com/index.php/User:MaynardWarf83
Thank you for every other informative blog. The place else may
just I am getting that type of information written in such an ideal method?
I’ve a challenge that I’m just now working on, and I’ve been on the glance
out for such information.
Also visit my site meal planning; zapisanie.ru,
magnificent issues altogether, you just gained a new reader.
What could you suggest about your publish that you just made a few
days in the past? Any certain?
Feel free to visit my web blog; altcoin mlm opportunity
Asbestos attorney-related victims are often affected
by ailments like lung cancer or mesothelioma, which can take years to manifest symptoms.
Having read this I thought it was really enlightening.
I appreciate you finding the time and effort to put this content together.
I once again find myself personally spending a lot of time both reading and leaving comments.
But so what, it was still worthwhile! http://clrobur.com/bbs/board.php?bo_table=free&wr_id=1983336
The 10 Scariest Things About Bunk Triple Bed bunk triple bed (Lacey)
Howdy! Do you use Twitter? I’d like to follow you if
that would be ok. I’m definitely enjoying your blog and look forward to new posts.
My web blog :: singapore food
Guide To Pushchair 3 Wheels: The Intermediate Guide In Pushchair 3 Wheels Pushchair 3
wheels, http://Www.diggerslist.com,
Heⅼlo, i ƅelieve that i noticеd yоu visited my web ѕite thus i came to go back tһe desire?.I am trying to find
things to enhance my wеb site!I guess its ߋk tⲟ makе use of some
of your ideas!!
my homepage … XXX Porno Video Site Live Free
If some one needs expert view concerning running a blog
after that i advise him/her to pay a visit this website, Keep up the fastidious job.
my blog spam
Electric Treadmill Incline Tips From The Best In The Business Treadmill Electric vs manual
What’s up, yup this post is in fact good and I have learned lot
of things from it on the topic of blogging. thanks.
my website alpha bits
5 Clarifications On French Style Fridge Freezer With Water And Ice Dispenser french door fridge In corner
Aw, this was an extremely good post. Finding the time and actual effort
to make a great article… but what can I say… I procrastinate a whole lot and don’t manage to get nearly anything done.
Here is my web site; data protection singapore
Pretty great post. I simply stumbled upon your weblog and wished to mention that
I have truly loved browsing your blog posts. After all I
will be subscribing in your feed and I am hoping you write once more soon!
Feel free to visit my homepage – top picks reviews
I’ve read several just right stuff here. Definitely
value bookmarking for revisiting. I surprise how so much effort you place to create such a wonderful informative site.
my website: Thi công vách ngăn vệ sinh (higo.vn)
Why Is There All This Fuss About Testing For ADHD In Adults?
online adult adhd test (Clark)
5 Killer Quora Answers On Programing Keys Programing
keys; https://www.Google.fm,
Heyɑ just wanted to give you a brief headѕ up and let you know a few of the images aren’t loading properⅼy.
I’m not sure wһy but I think its a lіnking issue. I’ve tried
it іn two different web browsers and both shoᴡ
the same геsults.
Look into my web site :: Video Webcam Chat Live XXX Free
boots online pharmacy doxycycline: renova cream online pharmacy – fluconazole uk pharmacy
See What Best Coffee Machines With Pods Tricks The Celebs Are Using best
coffee machines with pods (Aimee)
See What Toto Online Terbaik Tricks The Celebs Are Using toto online terbaik
Our know-how extends to large industrial jobs.
Look at my webpage … Bookmarks
You’ll Never Guess This Albuquerque Birth Injury Attorney’s Tricks albuquerque birth injury attorney
Scam
https://diuwin.org.in/
Viagra
https://diuwin.org.in/
Porn
https://diuwin.org.in/
Pornstar
https://diuwin.org.in/
Sex
https://diuwin.org.in/
Porn site
https://diuwin.org.in/