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/
Hey there, You have done an incredible job. I will certainly digg it
and personally suggest to my friends. I am confident they’ll be benefited
from this site.
Also visit my blog post https://ugzhnkchr.Ru/
15 Gifts For Your Collapsible Scooters Lover In Your Life Folding Boot Scooters
mail order pharmacy india: indian pharmacy – online pharmacy india
Nootropil levitra pharmacy pharmacy direct cialis
Awesome blog! Is your theme custom made or did you download it from somewhere?
A design like yours with a few simple adjustements would really make
my blog jump out. Please let me know where you got your design.
Cheers
Here is my web-site; คลิกอ่านต่อ
A How-To Guide For ADHD Medication Adults Uk From Start To Finish non amphetamine Adhd medication
Hi tһere! This is my first comment here so I just wanted to give a quick sһout out and tell you I really enjoy reading tһгough yⲟur
articles. Can you suggest any other blogs/websites/forums that covеr the ѕame
topics? Thanks a ton!
Here is my web-site – Sex XXX Web Cam Porno Video Chat
Guide To Composite Door Scratch Repair: The Intermediate Guide Towards Composite Door Scratch Repair Composite door scratch repair
Hi there! This article couldn’t be written any better!
Reading through this post reminds me of my previous roommate!
He always kept preaching about this. I’ll forward this article to him.
Pretty sure he’s going to have a good read. Thanks for sharing!
my website … elementor template kit
Wonderful blog! I found it while surfing around on Yahoo News.
Do you have any tips on how to get listed in Yahoo News?
I’ve been trying for a while but I never seem to get there!
Appreciate it
Feel free to surf to my webpage เกมส์252สล็อต
After I initially commented I appear to have clicked on the -Notify me when new
comments are added- checkbox and now every time a comment is added I receive 4 emails
with the exact same comment. Is there a means you are able to remove me
from that service? Appreciate it!
Review my website … talk.dofun.cc
You have made some really good points there.
I checked on the internet for more information about
the issue and found most people will go along with your views on this site.
Here is my homepage کارت مترو دانش آموزی
Hey there, You have done a fantastic job. I’ll definitely
digg it and personally recommend to my friends.
I’m confident they will be benefited from this web site.
My blog post :: Bokep Sub Indo Muasin bosku di depan Suami
I need to to thank you for this excellent read!! I absolutely loved every bit of it.
I have you book-marked to check out new stuff you post…
Look at my web site; Commercial cleaning
The Reason Toyota Keys Is Fast Becoming The Trendiest Thing
In 2023 Fob programming
Это зеркальная копия главного
игрового ресурса, которая имеет аналогичный дизайн, интерфейс и функционал.
my blog post :: водка казино приложение
My brother suggested I may like this blog. He was once
totally right. This publish actually made my day. You cann’t
imagine just how much time I had spent for this information! Thanks!
Also visit my web-site :: ทางเข้าเล่น777PG
I’ve been browsing on-line more than 3 hours nowadays, yet I by no
means found any fascinating article like yours. It’s beautiful worth enough for me.
Personally, if all website owners and bloggers made good content as you probably did,
the net shall be much more helpful than ever before.
Feel free to visit my webpage – jungle beast pro reviews
This Is The Ultimate Guide To Saab Replacement Keys saab Key programming near me
Простые условия участия позволяют даже начинающим игрокам добиться значительных успехов.
Look at my webpage – 7к казино скачать
Если открыть drip casino сайт
в браузере на смартфоне, то на экране появится главная
страница казино.
20 Things That Only The Most Devoted Honda
Key Fans Are Aware Of honda Motorcycle Key replacement near me
After I initially left a comment I appear to have clicked on the -Notify me when new comments
are added- checkbox and now whenever a comment is added
I recieve four emails with the same comment. Is there an easy method you
can remove me from that service? Cheers!
My web blog … Pinterest
I all the time emailed this webpage post page to all my friends, because if like to read
it after that my friends will too.
Feel free to visit my page … https://xn--80adec2ampndbs9h.xn--p1ai/user/sledhawk6/
I am regular reader, how are you everybody?
This article posted at this site is genuinely pleasant.
my blog – https://Yourbookmark.stream/Story.php?title=3-forms-of-truck-cab-speakers-you-need-to-have
If you are going for most excellent contents like me, simply go to see this site daily because it gives feature contents, thanks
Also visit my webpage … memek
Hurrah, that’s what I was seeking for, what a data! existing here at this weblog, thanks admin of this web site.
my website :: رشته های دو مدرکی فرهنگیان
I got this site from my friend who informed me on the topic of this web site and now this time I am visiting this web site and reading very
informative articles at this place.
Feel free to surf to my web-site :: tonic greens scam
buy viagra online
Вы тоже можете принять в
них участие, если рискнете играть на legzo casino официальный сайте с денежными ставками.
Magnificent beat ! I wish to apprentice while you amend your web site,
how can i subscribe for a blog website? The account helped me a acceptable deal.
I had been a little bit acquainted of this your broadcast
offered bright clear concept
Take a look at my webpage :: Images.Google.Com.pa
Довольно крупное казино с
широким выбором азартных развлечений.
Feel free to visit my site starda casino официальный сайт
Thankfulness to my father who stated to me about this web site, this web
site is in fact awesome.
Here is my web blog – Instapages.Stream
Howdy! I’m at work surfing around your blog from my new iphone 4!
Just wanted to say I love reading your blog and look forward to all your posts!
Carry on the fantastic work!
my web page :: AK888
سقف عرشه فولادی
my site – اجرای سقف عرشه فولادی
You’ll Never Guess This Gspot Sex Toys’s Benefits gspot sex toys (Sang)
These are actually enormous ideas in about blogging. You have touched some good points here.
Any way keep up wrinting.
Also visit my website :: ชาบู189
For the reason that the admin of this web page is working, no
question very shortly it will be famous, due to its feature contents.
Feel free to visit my site Legal advice
Twenty Myths About Sleeper Sectional: Busted sofa sleeper with Memory Foam mattress
My spouse and I stumbled over here by a different web address and thought I should check things out.
I like what I see so now i’m following you. Look forward to exploring your web page repeatedly.
My homepage :: Wx.Abcvote.Cn
Where Can You Get The Most Effective Diagnosing ADHD
UK Information? private adhd diagnosis cost
buy viagra online
Have you ever thought about adding a little bit more than just your articles?
I mean, what you say is important and all. But think of if you added some great photos or video clips
to give your posts more, “pop”! Your content is
excellent but with pics and video clips, this blog could certainly be one of
the most beneficial in its field. Awesome blog!
Here is my site – espèces de truffes
На вооружении сайта много различных инструментов-приманок для новичков в играх
и для игроков со стажем.
Stop by my website :: Игровые автоматы казино
I could not refrain from commenting. Perfectly written!
My site … bokep xxx
Spot on with this write-up, I honestly feel this web site needs a lot
more attention. I’ll probably be back again to see more, thanks for the info!
My blog شرایط پذیرش دانشگاه شاهد ۱۴۰۳
Your style is so unique compared to other folks I have read stuff from.
Thanks for posting when you’ve got the opportunity, Guess I will just book mark this blog.
Stop by my webpage: freestyle beat trap
Hey there! Someone in my Myspace group shared this website with us so I came to look it over.
I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers!
Excellent blog and superb design.
Feel free to surf to my homepage – judi online
It’s an amazing post in support of all the internet viewers; they will take
benefit from it I am sure.
Feel free to surf to my page; tonic greens official website
Hmm is anyone else encountering problems with the pictures on this blog loading?
I’m trying to figure out if its a problem on my end or if it’s the blog.
Any suggestions would be greatly appreciated. http://Www.zti-Bio.com/bbs/board.php?bo_table=free&wr_id=467467