Staying Ahead In Consumer and Industrial Markets
New players and established giants are embracing digital technologies, many in innovative ways that go beyond online shopping—creating new channels, improving supply chain and delivery, making customer contact more meaningful. For consumer and industrial products, the challenges and opportunities are inspiring new approaches and bold thinking.
Our retail and distribution consultants help you stay ahead of the changes, make the bold decisions, and stay informed, so you can earn the rewards of market share and customer loyalty as the transformation unfolds. Drawing on our research and experience in retail and distribution strategy, operations, IT, and talent, we see the emergence of four critical issues in the industry that our retail and distribution consulting services can support:
Retail talent disrupted
Key issues affecting retailers
The digital landscape
New technologies are fundamentally transforming how, when, and where consumers shop. Retailers able to leverage mobile and social tools to improve the customer experience and provide multiple buying channels can be well positioned for success. As shoppers demand more real-time, personalized information and offers, retailers will need to surround this service with strong privacy and security measures.
Store of the future
With more options for consumers to buy online or through their mobile devices, the physical ‘box’ is shifting from a transaction enabler to brand experience.
Real estate shift
As sales continue to shift out of stores to online, it will be important for retailers to reassess their space and location requirements as the purpose of the store evolves.
International expansion affords access to new markets, some with high-growth consumer incomes. Identifying the appropriate method of market entry will be important to ensuring sustainable results for retailers.
The changing regulatory landscape is likely to have a significant impact on the retail sector. How retailers prepare for these changes and implement strategies to limit business disruption will likely be critical to their future success.
After decades of growth through new store development, retailers are investing more in innovation and data analytics. Retailers must continue to challenge themselves to think differently about how technology and science are changing the nature of commerce.
The talent imperative
Having the right talent can help retailers delight customers, differentiate from the competition, and achieve profitability and growth goals. A diverse workforce serving a broadened customer base is an important success factor that can improve service outcomes and enhance financial performance.
Key issues affecting wholesale distributors
The wholesale distribution industry is one of the more complex industries driven by the high number of SKUs, customers, suppliers and transactions, and their pricing and rebate structures. Distributors are beginning to see the value in advanced analytics to solve industry pain points in areas such as pricing, rebates management, and inventory optimization.
The confluence of a massive generational shift at distributors and among their customers, coupled with advances in technology and technology adoption is creating an opportunity to change the nature of the distributor-customer interaction.
Financial pressure from the board, shareholders and competitors continues to be a key issue for wholesale distributors in the areas of sourcing, rebates and chargebacks, pricing, and supply chain improvement to improve margins.
While a few distributors have highly developed digital capabilities and are generating meaningful revenues via mobile and e-Commerce channels, most are still in the early stages of development and adoption. Regardless of line of trade or company size, the ability to offer customers—or in many cases drive customers—to digital channels is very important.
As the wholesale distribution industry evolves, many distributors are still operating with fragmented, legacy IT systems. With inadequate technology in place, modernizing enterprise resource planning (ERP) systems might be a priority for the sector this coming year. As the industry matures, edge applications such as transportation management system/warehouse management system, mobility, and e-Commerce are expected to become more important to differentiate distributors from the competition.
Value chain disruptions
New business models can drive growth for some distributors or create significant disruption in the value chain for others. Managing these shifts to ensure sustainable business performance is a priority for wholesale distributors, particularly as new competitors emerge and apply additional pressures.
Strategy and transformation: growth through new technologies
Many organizations are pursuing emerging technologies to develop new products, services, or ways of doing business. However, companies don’t always consider the emerging cybersecurity threats that could impact these systems after they’re implemented. Dais X can help you design transformation strategies with security in mind from the very start, with the foresight to help you see what’s on the other side of the leading edge.