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/
Hello there! This blog post could not be written any better!
Going through this article reminds me of my previous roommate!
He constantly kept talking about this. I will send this post to him.
Fairly certain he’s going to have a good read.
I appreciate you for sharing!
my webpage Live Draw Cambodia
http://mexicopharmacy.cheap/# buying prescription drugs in mexico online
Wow, this post is fastidious, my sister is analyzing these things, so I am going to let know her. http://Perevtul.ru/bitrix/rk.php?goto=https://Links.wbspe.com.br/lorenaikv258
Pretty nice post. I just stumbled upon your weblog and wanted to say
that I have truly enjoyed surfing around your blog posts.
After all I’ll be subscribing to your rss feed and I hope you write again very soon!
Feel free to visit my web site :: 부천 두문
my blog post: PokerTube – Watch Free Poker Videos & TV Shows
5 Killer Quora Answers To Double Glazing Repairs Leeds Glazing Repairs Leeds
5 Killer Quora Questions On Fiat Key Replacement
fiat panda replacement key
Aw, this was a very good post. Taking the time and actual effort
to produce a good article… but what can I say… I put things off a whole lot
and never seem to get nearly anything done.
Here is my homepage … giro messeri
Sex
https://91clubegame.com/
Scam
https://91clubegame.com/
Pornstar
https://91clubegame.com/
Hey there this is somewhat of off topic but I was wanting to know if blogs use WYSIWYG editors or if you
have to manually code with HTML. I’m starting a blog soon but have no coding skills so I wanted to get guidance from someone with experience.
Any help would be greatly appreciated!
Visit my webpage – Cash for Land Owners Today
Buy Drugs
https://91clubegame.com/
Viagra
https://91clubegame.com/
The Top Reasons For Double Glazing In Birmingham’s Biggest “Myths” About Double Glazing In Birmingham Could Actually Be True Glaziers in birmingham
Porn site
https://91clubegame.com/
Porn
https://91clubegame.com/
Hi, i feel that i saw you visited my site thus i got here
to go back the desire?.I’m attempting to to find issues to enhance my website!I
suppose its adequate to use a few of your concepts!!
Look at my web-site :: General contractor digital presence
Sex
https://91clubegame.com/
Pornstar
https://91clubegame.com/
Thanks for the good writeup. It in fact was once
a amusement account it. Look advanced to more brought agreeable from you!
However, how can we be in contact?
Also visit my webpage … Medical Supplies
Scam
https://91clubegame.com/
Pornstar
https://91clubegame.com/
Sex
https://91clubegame.com/
Viagra
https://91clubegame.com/
Buy Drugs
https://91clubegame.com/
Buy Drugs
https://91clubegame.com/
Porn
https://91clubegame.com/
Porn site
https://91clubegame.com/
Viagra
https://91clubegame.com/
How Best Vibrators For Men Has Become The Most Sought-After Trend In 2023 Adult male toys
Scam
https://91clubegame.com/
What Experts In The Field Of Single Mattress Want You To Know single mattress cheap [Sylvia]
Amazing! Its genuinely remarkable piece of writing, I have got much clear
idea about from this piece of writing.
my webpage; igaming/mobile gaming ppc
Magnificent goods from you, man. I’ve have in mind your stuff previous to and you
are just too fantastic. I really like what
you have got here, certainly like what you’re
stating and the way during which you say it.
You make it enjoyable and you still take care of
to stay it wise. I cant wait to read far more from you.
This is actually a great website.
My blog – seo
I believe this is one of the such a lot important info for me.
And i’m glad reading your article. But want to statement on few basic issues,
The site style is great, the articles is in reality excellent : D.
Excellent activity, cheers
Also visit my web blog :: zabauk01
Guide To Mesothelioma Lawsuits: The Intermediate Guide To Mesothelioma Lawsuits
Mesothelioma Lawsuits (Yogaasanas.Science)
hey there and thank you for your info – I have certainly picked up
something new from right here. I did however expertise several technical issues using this site,
as I experienced to reload the web site a lot of
times previous to I could get it to load correctly.
I had been wondering if your hosting is OK? Not that I am complaining, but sluggish loading instances times will very frequently affect your placement in google and can damage
your quality score if advertising and marketing with Adwords.
Anyway I am adding this RSS to my email and can look out for much more of your respective fascinating content.
Ensure that you update this again soon.
my site: 아고다할인코드
http://mexicopharmacy.cheap/# mexico drug stores pharmacies
15 Land Rover Key Replacement Cost Benefits That Everyone Should Know
Land Rover Defender 2020 Activity Key
I’m truly enjoying the design and layout of your site.
It’s a very easy on the eyes which makes it much more enjoyable for me to come here and visit more often. Did you hire out a developer to create your theme?
Superb work!
Here is my web blog Hardware wallet Reddit
24 Hours To Improve Single Bunk Beds With Mattresses
One bed bunk bed [glamorouslengths.Com]
How To Choose The Right Vibrating Panty Sex Toy Online best women vibrators
(athosworld.haliya.net)
Its like you read my mind! You seem to understand so much approximately this, like you
wrote the book in it or something. I think that you just
could do with a few percent to power the message house a little bit, but other than that, that is fantastic blog.
An excellent read. I’ll certainly be back.
Also visit my website – here are the findings
I do not even know the way I finished up right here, however I assumed
this put up was once great. I do not recognise
who you are however certainly you’re going to a well-known blogger if you happen to are
not already. Cheers!
Look into my blog تأليف و اخراج علاء الشريف
I was recommended this blog by my cousin. I’m not positive whether this post is written through him as no one else recognize such distinctive approximately my problem.
You’re incredible! Thank you!
Stop by my blog – General contractor marketing tactics
Hurrah, that’s what I was exploring for, what a data!
present here at this web site, thanks admin of this web page.
Look into my page xxx mom son fuck HD movies
เนื้อเรื่อง ของบล็อกนี้ เร้าใจมากๆ ครับ ผมชอบวิธีการ ศึกษาประเด็นต่างๆ อย่าง รอบคอบ และ มีเหตุมีผลชัดเจน เป็นการช่วยให้ผู้อ่านเข้าใจ
ประเด็นได้ ลึกซึ้งขึ้น มากขึ้น คุณเขียนได้อย่าง เป็นขั้นตอนและ น่าจับตามอง ซึ่งเป็นสิ่งสำคัญสำหรับบทความระดับนี้
นอกจากนั้น ผมยังชอบมุมมอง ใหม่ๆ ที่คุณได้นำเสนอ ซึ่งเป็นสิ่งที่ ยังไม่เคยรู้จักคิดมาก่อน มันช่วยขยาย
มุมมอง และ ความเข้าใจ
ของผมไปในทิศทางที่ กว้างขวางขึ้น ผมขอขอบคุณที่คุณได้แบ่งปัน ความรู้และ ความสามารถของคุณ มันช่วยให้ผมได้ ปรับปรุงตัวเอง มากขึ้นอย่างแน่นอน
ผมหวังว่าจะได้ ติดตาม บทความอื่นๆ ของคุณในอนาคตเช่นกัน เพราะผมมั่นใจว่าจะมี
ความหมาย และเป็นการ ยกระดับความรู้ให้กับผมอย่างแน่นอน
ขอบคุณมากครับ!
Here is my web page … สล็อตออนไลน์ [http://dsz22.xyz/]
Thanks a bunch for sharing this with all of us you actually understand what you’re speaking approximately!
Bookmarked. Please also consult with my web site =).
We will have a link exchange agreement among us
Also visit my web-site – giro messeri
If you desire to obtain a great deal from this paragraph then you
have to apply these methods to your won webpage.
Here is my web page :: ทางเข้า UFABET147