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/
Why Lost My Car Keys Isn’t A Topic That People Are
Interested In Lost My Car Keys Replace Lost Key For Car (Clicavisos.Com.Ar)
Forzest: international pharmacy – best online pharmacy cialis
Post writing is also a excitement, if you be acquainted with afterward you can write if not it is complicated to write.
Here is my page :: Porn Online
The No. 1 Question Anyone Working In ADHD Tests For Adults Should
Know How To Answer Adhd Testing Uk
Double Mattress In Sale: It’s Not As Difficult As
You Think Double mattress Hybrid
Hi there would you mind letting me know which webhost you’re using?
I’ve loaded your blog in 3 different browsers and I must say
this blog loads a lot faster then most. Can you
recommend a good internet hosting provider at a fair price?
Thank you, I appreciate it!
my homepage :: agenolx login
Thank you for the good writeup. It in fact was once a amusement account it.
Glance advanced to far delivered agreeable from you!
However, how can we be in contact?
Also visit my site; VPS NVMe SSD
Does your site have a contact page? I’m having trouble locating it but, I’d like to
shoot you an e-mail. I’ve got some ideas for your
blog you might be interested in hearing. Either way, great website and I
look forward to seeing it grow over time. http://Hp-Ad.Sub.jp/nayami/nayamibbs/index.html
Why Nobody Cares About Veleco Mobility Scooters Uk veleco Scooter Reviews
It’s The Complete Cheat Sheet For Scooter To Buy Near Me Mobility Scooter To Buy Near Me
Большинство видео имеют формат
MP4 и SD, HD, FullHD, 2K и 4K.
My web blog … ssyoutube
It’s enormous that you are getting ideas from this paragraph as
well as from our argument made here.
Feel free to surf to my blog post sex indo viral
We are a gaggle of volunteers and opening a brand new scheme in our community.
Your website offered us with helpful information to work on. You’ve performed an impressive job and
our entire group might be grateful to you.
Also visit my webpage – lottery defeater software is it a scam
You’ll Never Guess This Situstoto Slot’s Tricks Situstoto Slot
How To Build A Successful Spare Audi Key Even If You’re Not Business-Savvy replacement audi key fob (Michell)
I’m not that much of a online reader to be honest but your sites really nice,
keep it up! I’ll go ahead and bookmark your website to come back later on. Cheers
My web-site :: is pro nerve 6 a scam
Hi everyone, it’s my first pay a quick visit at this site, and article
is really fruitful designed for me, keep up posting such articles.
Feel free to surf to my blog post; Bondoc Roofing
This site was… how do I say it? Relevant!!
Finally I have found something that helped me.
Kudos!
Have a look at my site – ngentot anjing
pharmacies in mexico that ship to usa: mexican mail order pharmacies – mexico drug stores pharmacies
Woah! I’m really digging the template/theme of this website.
It’s simple, yet effective. A lot of times it’s very
hard to get that “perfect balance” between user friendliness and visual appeal.
I must say you have done a great job with this. Also, the blog loads super quick for me on Chrome.
Exceptional Blog!
Here is my web blog … you can check here
Hi there to every one, it’s really a good for me to
go to see this website, it consists of precious Information.
my homepage calm happy background music
11 Creative Methods To Write About Lightweight 3 Wheel Scooter three wheels scooters
buy viagra online
Its not my first time to pay a quick visit this web page, i am visiting this site dailly and get
fastidious data from here daily.
Also visit my site: buy instagram follower followers
What You Should Be Focusing On Enhancing Sectional Couches Sectional couches with recliners
bahrain pharmacy cialis: thrive rx specialty pharmacy – spironolactone pharmacy
What’s The Job Market For Nissan Key Fobs Professionals?
car Key replacement nissan
We’re a group of volunteers and starting a new scheme in our community.
Your web site offered us with valuable information to work on. You’ve done an impressive job and our entire
community will be thankful to you.
Visit my web-site: zabauk01
После нажатия на него сразу можно перейти
на официальный сайт лицензиата и проверить лицензию.
Take a look at my webpage казино КЗ
FitSpresso is a remarkable supplement that stands out to me due to its special formulation of ingredients and its aim to support healthy weight loss in a safe way.
What distinguishes FitSpresso from others is its unique mix of components that not only support fat
burning but also enhance metabolism and improve general wellness.
I appreciate that FitSpresso is designed to be gentle yet effective, making
it suitable for people who are looking for a healthy weight loss method.
The fact that it increases energy while reducing appetite
is a great advantage because it helps to prevent extreme hunger pangs or
intense cravings that many other weight management products cause.
Additionally, its all-natural composition makes it
a better choice compared to synthetic supplements. I’ve seen many
positive reviews from people who have experienced significant
boosts in their energy, overall attitude, and physical appearance after adding FitSpresso
into their health regimen. It’s also worth noting that it works well with a hectic schedule since it isn’t dependent on a major diet overhaul or heavy exercise.
In conclusion, FitSpresso seems like a promising supplement
for people dedicated to achieving their slimming down while supporting their health with a safe,
convenient solution. I think it delivers an easy and effective way for those who
are looking to lose weight without jeopardizing their well-being.
penis enlargement
It’s amazing in favor of me to have a website,
which is useful for my knowledge. thanks admin
Here is my homepage – 센트립 도매
Thanks for finally writing about > 3 Ways Technology is Impacting
Distribution memek
It’s really very difficult in this active life to listen news on TV, thus I simply use web for that reason, and
obtain the most recent news.
Here is my page – เกมสล็อตLONDON 500
See What Automatic Folding Mobility Scooter Uk Tricks The
Celebs Are Using automatic folding mobility scooter uk [imoodle.win]
Good day! This is my 1st comment here so I just wanted to
give a quick shout out and say I genuinely enjoy reading your articles.
Can you recommend any other blogs/websites/forums that deal with the same
subjects? Thanks a lot!
Here is my site :: herpesyl reviews
Hi would you mind stating which blog platform
you’re working with? I’m planning to start my own blog in the near future but I’m
having a hard time choosing between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your layout seems different then most blogs and I’m looking for
something unique. P.S Apologies for being off-topic but I had to ask!
Look into my web page – Situs Slot Minimal Deposit 10rb
The Reasons To Focus On The Improvement Of Friction Hinges Window Friction Hinges
online pharmacy india: online shopping pharmacy india – indian pharmacy online
10 Signs To Watch For To Buy A Adult ADHD In Women adult Add women
Бесперебойная система, работающая ежедневно и круглосуточно, а
также компетентные сотрудники понравятся игрокам.
Look into my site – кабура сайт
online pharmacy india: top online pharmacy india – indian pharmacy
Yes! Finally someone writes about חשפנית.
My web-site חשפניות בחדרה
The Secret Secrets Of Wheelchairs Ramps Car Ramp For Electric Wheelchair
Five Killer Quora Answers To Toto4d toto4d, Aja,
5 Killer Quora Answers To Remote Automatic Folding Scooter remote automatic folding scooter
15 Best Twitter Accounts To Learn About Replacement Land Rover
Keys how to Program a land rover discovery Key fob
The 10 Most Popular Pinterest Profiles To Keep Track Of About Replacement Keys For
Car broken car key
I am regular reader, how are you everybody?
This post posted at this site is truly fastidious.
Stop by my blog: bdg win login
20 Misconceptions About Auto Folding Travel Scooter: Busted Auto folding mobility scooters