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/
Пользователю предоставляется собственный профиль, где собрана необходимая информация о балансе, статистике,
акциях клуба.
Have a look at my website champion slot
May I simply just say what a comfort to discover an individual who really knows what they are discussing over the internet.
You actually realize how to bring a problem to light and make it important.
More people should read this and understand this side of the story.
I can’t believe you aren’t more popular since you surely possess the gift.
Feel free to surf to my homepage … สล็อตM24
I’m very happy to discover this website. I want to to thank you for ones time just
for this fantastic read!! I definitely really liked every bit of it and i also have you bookmarked to see new stuff on your web site.
my web site: http://Old.Amerit.Org.mk/question/les-differentes-sortes-de-pelouse-guide-pour-choisir-le-gazon-parfait-pour-votre-jardin/
The Top Mobility Scooter Servicing Near Me Tricks For Changing Your Life electric mobility scooter
near me (Jason)
You’ll Never Guess This Situs Togel Dan Slot Terpercaya’s Tricks Situs Togel Dan Slot Terpercaya
You’ll Never Be Able To Figure Out This All Terrain Folding Electric Wheelchair Uk’s
Secrets all terrain folding electric wheelchair uk (http://loft.awardspace.info/smf/index.php?PHPSESSID=a0e6f9ada6e6e61efa2ee48a7aeca0c8&action=profile;u=155502)
It’s The Ugly Reality About Volkswagen Key volkswagen key replacement (Breanna)
I am really enjoying the theme/design of your website.
Do you ever run into any browser compatibility problems? A handful of my blog audience have complained
about my site not operating correctly in Explorer but looks great in Chrome.
Do you have any tips to help fix this issue?
My web-site; Commercial cleaning
Everyone loves it when folks come together and share views.
Great website, stick with it!
Here is my page check this out
The 10 Scariest Things About Buy Mobility Scooters Near Me buy mobility scooters near me
Do you have a spam problem on this website; I also am a blogger, and I
was wanting to know your situation; we have created some nice procedures and we are looking to swap techniques
with others, be sure to shoot me an e-mail if interested.
Here is my web site – water heater terbaik cianjur
The 10 Most Scariest Things About How To Get Spare
Car Key How to get spare car key
The Unspoken Secrets Of Adult Treatment For ADHD adult adhd diagnosis And treatment
With havin so much written content do you ever run into
any problems of plagorism or copyright infringement? My website has a
lot of unique content I’ve either created myself or outsourced but it looks
like a lot of it is popping it up all over the web without my permission. Do you
know any solutions to help prevent content from being stolen? I’d truly appreciate it.
Here is my page – ทางเข้า UFABET เว็บตรง777
Ne perdez plus Réduire le nombre de mo d un pdf temps
à transférer des PDF trop lourds, découvrez comment les rendre plus légers sur black-hat-seo.org.
Greate article. Keep writing such kind of information on your site.
Im really impressed by your blog.
Hi there, You’ve done an excellent job. I’ll definitely digg it and in my opinion suggest to
my friends. I am confident they will be benefited from this web site.
My web blog :: Mostbet
What’s The Job Market For Automatic Folding Lightweight Mobility Scooter Professionals?
Automatic Folding Lightweight Mobility Scooter
http://mexicopharmacy.cheap/# purple pharmacy mexico price list
I blog frequently and I genuinely thank you for your content.
The article has truly peaked my interest. I am going to book mark your website
and keep checking for new details about once per week.
I subscribed to your Feed too.
Here is my site … what are the growth matrix exercises
Appreciation to my father who informed me on the topic of
this blog, this web site is in fact amazing.
Feel free to visit my site … King IPTV
I seriously love your website.. Excellent colors & theme.
Did you build this amazing site yourself? Please reply back as
I’m hoping to create my very own blog and want to find out where you got this
from or exactly what the theme is called.
Appreciate it!
Review my web blog :: สล็อตXOXO CLUB
What’s The Reason You’re Failing At Heavy Duty Folding Wheelchair folding wheelchairs lightweight
ADHD Testing 10 Things I’d Like To Have Known In The Past adhd Online testing
This is my first time pay a quick visit at here and i am truly pleassant to read all at single place.
Here is my site – Sure Shot Telegram
The No. One Question That Everyone Working In Treadmills
With Incline For Sale Needs To Know How To Answer under Bed treadmill with incline
Five Killer Quora Answers On ADHD Private Assessment UK adhd private assessment uk
Auto Ignition Lock Repair 101: Your Ultimate Guide For Beginners
repair car Lock
This Week’s Most Remarkable Stories About Car Boot Mobility Scooter Car Boot Mobility Scooter
mobility boot scooters (http://reali.esport.ge/)
If some one wants to be updated with most up-to-date technologies therefore he must be pay a visit this web site and be up to date
everyday.
My webpage :: dentavim amazon
Quality articles or reviews is the important to interest the
viewers to pay a visit the web site, that’s what this web page is providing.
my page Times of Netherland
Wow, that’s what I was searching for, what a
data! present here at this weblog, thanks admin of this web site.
Review my web blog :: รับผลิตอาหารเสริม
10 Quick Tips About ADHD Diagnosis UK Adults Adhd diagnosis as an Adult
Great article! This is the kind of information that are meant
to be shared across the web. Disgrace on the search engines for now not positioning this publish higher!
Come on over and discuss with my website . Thank you =)
Here is my web-site เกมสล็อตสล็อตU31 เครดิตฟรี188
Glass Repair Bristol Tips From The Top In The Business door
repairs bristol (https://mozillabd.science/)
https://pharmbig24.online/# no prescription pharmacy paypal
20 Insightful Quotes On Fireplace Surround Lynnbolvin.top
hello there and thank you for your info – I’ve certainly picked
up something new from right here. I did however expertise
a few technical issues using this web site, as I experienced to reload the
website lots of times previous to I could get it to load properly.
I had been wondering if your web host is OK? Not that I am complaining, but slow loading instances times will very frequently affect your placement in google and could damage your quality score if ads and marketing with Adwords.
Anyway I’m adding this RSS to my e-mail and could look out for much more of your
respective interesting content. Ensure that you update this again very soon.
Review my homepage kontol
Do you mind if I quote a couple of your articles as long as I provide credit and sources back to your website?
My website is in the very same area of interest
as yours and my users would genuinely benefit from some of the information you
provide here. Please let me know if this ok with you.
Appreciate it!
my web page – A片
The Porsche Spare Key Case Study You’ll Never Forget new porsche Keys
Hey there! This is my 1st comment here so I just wanted
to give a quick shout out and say I really enjoy reading your articles.
Can you recommend any other blogs/websites/forums that cover the same subjects?
Thanks a lot!
Here is my site; Pasang IndiHome Aja
Attractive part of content. I simply stumbled upon your site and in accession capital to claim that I acquire in fact loved account your blog posts.
Any way I’ll be subscribing on your augment or even I success you
get entry to persistently fast.
Look into my site – Mostbet
My brother suggested I might like this website. He used to
be totally right. This put up truly made my day. You can not believe simply how so much time I had spent for this information! Thanks!
Also visit my web blog :: Natural Stone Wall Cladding Sydney
Hello, i read your blog occasionally and i own a similar one and i
was just curious if you get a lot of spam comments?
If so how do you reduce it, any plugin or anything you can advise?
I get so much lately it’s driving me mad so any help is
very much appreciated.
My website vidio porn
Why Double Glazed Window Hinge Can Be Much More Hazardous Than You Think how to fix casement Window hinges
Why You Should Focus On The Improvement Of ADHD Test Adult how Much Does adhd testing cost uk
I know this if off topic but I’m looking into starting my own weblog and was
curious what all is required to get setup? I’m assuming having a blog like
yours would cost a pretty penny? I’m not very internet
savvy so I’m not 100% certain. Any recommendations or advice would be greatly appreciated.
Thanks
Feel free to visit my web site: เกมLYN289
What’s The Current Job Market For Car Key Lockout Service Professionals?
key lockout service
I think this is one of the most significant info for me.
And i’m glad reading your article. But should remark on some general things, The
website style is perfect, the articles is really great :
D. Good job, cheers
my web site … feeling happy background music
Way cool! Some very valid points! I appreciate you penning
this article plus the rest of the site is extremely good.
Here is my webpage … เข้าสู่เกม
It Is The History Of Local SEO Company London london search Engine optimization (yourbookmark.stream)