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/
methotrexate pharmacy mistake: pharmacy store design layout – ambien overseas pharmacy
10 Factors To Know Concerning Togel4d You Didn’t Learn In The Classroom toto Online terbaik
It’s not my first time to pay a quick visit this site, i am browsing
this website dailly and take pleasant facts from here every day.
My site :: bdg game register
http://pharmbig24.com/# viagra online australian pharmacy
Hey There. I found your blog using msn. This is a very well written article.
I’ll be sure to bookmark it and come back to read more of
your useful information. Thanks for the post. I will definitely comeback.
My page; เกมส์ชาบู189
What NOT To Do In The Kia Duplicate Key Industry replacement
kia key fob (Latisha)
Hi, I do think this is an excellent site (http://test.ricorean.net/bbs/board.php?bo_table=free&wr_id=83593).
I stumbledupon it 😉 I may revisit once again since i have saved as a favorite
it. Money and freedom is the best way to change, may you be rich and continue to help others.
Generally I don’t read article on blogs, however I would like to say that this write-up
very forced me to try and do so! Your writing style has been surprised
me. Thank you, quite nice article.
My blog post :: riding lawn mower Malaysia
My ƅrother suggested I mіght like this web sіte.
He was totally rіght. This post truly made my day.
You cann’t imagine just how much time I had spent for tһis information! Thanks!
Also visit my website Video Free Web Cam Site Porno Live
10 Tell-Tale Symptoms You Need To Find A New Richmond Mesothelioma Attorney mesothelioma attorney missouri (Maynard)
I do consider all the ideas you have presented for your post.
They are really convincing and will definitely work.
Nonetheless, the posts are very short for
newbies. May you please prolong them a bit from next time?
Thank you for the post.
Review my web-site – check this out
medicine in mexico pharmacies: mexican online pharmacies prescription drugs – mexican border pharmacies shipping to usa
The 10 Scariest Things About Composite Door Frame Repair
composite door frame repair
What’s The Current Job Market For L Shaped Sectional With Pull Out Bed Professionals Like?
l shaped sectional with pull out bed
This website was… how do you say it? Relevant!! Finally I have found something that helped
me. Cheers!
Here is my site :: the growth matrix exercises
Un calendrier détaillé des événements liés à l’autoconstruction cout et aux métiers du bâtiment.
I’m amazed, I must say. Seldom do I encounter a blog that’s equally educative and amusing, and without a doubt, you’ve
hit the nail on the head. The issue is an issue that too few people are speaking intelligently about.
Now i’m very happy that I stumbled across this during my hunt for something regarding this.
my web blog … เกมสล็อตLYN289
Every day banking is a lot less difficult with our digital banking
platforms and solutions.
Here iss my web site; Loan Forgiveness Student Loans
payday loan
I used to be able to find good info from your content.
Also visit my web blog Slot Resmi
10 Undeniable Reasons People Hate Kia Picanto Key Replacement
Kia Optima Replacement Key
El comercio de opciones binarias permite realizar predicciones financieras en la que los inversores calculan si el valor de un activo subira o bajara. Brokers como Quotex ofrecen acceso a mercados para el trading de opciones binarias. Con conocimientos y herramientas, es posible aumentar las ganancias en el trading de opciones binarias. Opciones binarias trading se ha vuelto popular en paises como Mexico y en todo el mundo.
quotex iniciar sesion opciones binarias trading .
Saved as a favorite, I really like your blog!
Visit my webpage; ufa147
9 Things Your Parents Teach You About Replace Upvc Window Handle upvc Windows repairs near me
you are really a excellent webmaster. The site loading velocity
is amazing. It seems that you are doing any unique trick.
Moreover, The contents are masterwork. you’ve done a excellent job on this topic!
Also visit my homepage; https://bookmarklinking.com/story3605483/tinel-timu-une-entreprise-engag%C3%A9e-dans-le-secteur-du-sport-et-des-loisirsml
What Is Penis Machine For Women And Why Is Everyone Dissing It?
Sex Machine sale
I like reading a post that will make people think. Also, thank you for allowing for me to comment!
Here is my blog post: Porn Watch Online
It is in reality a great and helpful piece of info. I’m happy that you just shared this useful info with us.
Please keep us informed like this. Thanks for sharing.
my website: best site to invest in gold
Greetings! Very helpful advice within this post!
It’s the little changes that make the biggest changes.
Thanks a lot for sharing!
Also visit my web blog :: Personalised Gifts Uk
pharmacy website india: top 10 online pharmacy in india – best india pharmacy
cialis certified online pharmacy: homepage – my rx pharmacy
What’s The Job Market For Daftar Situs Togel Professionals?
Daftar Situs Togel
Great blog you have got here.. It’s difficult to find excellent writing like yours nowadays.
I really appreciate people like you! Take care!!
Here is my homepage Live HK
14 Savvy Ways To Spend Left-Over Auto Locksmith Near Me Prices Budget automotive Locksmith key
Fob; petty-Klint-3.technetbloggers.de,
Howdy! I know this is kinda off topic however I’d figured I’d
ask. Would you be interested in trading links or maybe guest authoring a blog post or vice-versa?
My site addresses 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 send me an email.
I look forward to hearing from you! Great blog by the way!
Feel free to surf to my page … кракен наркота что это
The 10 Most Terrifying Things About Anal Butt Plugs anal sex toys uk
I’m not sure exactly why but this web site is loading extremely slow for me.
Is anyone else having this problem or is it a issue on my end?
I’ll check back later and see if the problem still exists.
Look into my site valium online 290-38
The 10 Most Terrifying Things About Private ADHD Assessment Adult private adhd assessment adult
Treasure Hunt is a straightforward Pa Lottery game that fees just $1.00 to enter.
Thanks for sharing your thoughts on เกมสล็อตVVIP69.
Regards
20 Questions You Need To Be Asking About Capsule Coffee Machine Uk
Before You Purchase Capsule Coffee Machine Uk pod Coffee machine
Hi there, its nice paragraph about media print, we all be familiar with media is a fantastic source of facts.
Also visit my web-site: Portugal News Today
This is really fascinating, You are an overly professional blogger.
I have joined your feed and look ahead to in quest of extra of your fantastic post.
Also, I have shared your web site in my social networks http://Southernindianaoutdoors.com/__media__/js/netsoltrademark.php?d=itsalwayssunny.wiki%2Findex.php%3Ftitle%3DUser%3ATahliaEdye
20 Resources That’ll Make You More Efficient At Folding Treadmills foldable treadmills
It Is Also A Guide To Jaguar Xf Replacement Key In 2023 jaguar xf not recognising smart key (Sharon)
I think the admin of this site is actually working hard in support of his web page,
since here every material is quality based data.
Have a look at my web blog – Truffes noires d’été fraîches
The 10 Most Scariest Things About Automatic Folding Mobility Scooters For Sale automatic folding mobility
scooters (zanybookmarks.com)
Hello, yup this article is in fact nice and I have learned lot of things from
it regarding blogging. thanks.
Also visit my web blog … online casino deposit bonus (Valeria)
В случае возникновения затруднений, не
стесняйтесь обращаться к нашей команде
экспертов.
Feel free to surf to my web page … Казино Водка
Главное, что заценил на Старде –
мобильное приложение.
My web-site; казино старда вход