Blog

Distribution, on a large scale, consists of operations.
Massive competition, shrinking margins, and higher expectations lead business leaders to feel the pressure of manual processes and go for digitization.
However, investing in digitized processes remains a sort of dilemma for major distribution players owing to the efficiency they drive out of it.
Gaining speed, agility, and reliability remains the primary focus of the distribution companies to gain actionable insights from digital tools and technologies.
Digital tools and technology are changing how people interact, thereby changing how people do business.
As the definition of digital transformation goes, “the process of converting raw data, gaining actionable insights, and making digitally-driven decisions.
Similarly, digitization in the distribution business refers to transforming its core business processes using digital technology and gaining a competitive advantage over other industry players.
However, digitization in distribution is not as easy as it seems, owing to several challenges.
The below-mentioned challenges make the digitization process complex in the distribution businesses.

1. Creating B2C-like shopping experiences

Customers in distribution-based shopping have been used to mainstream e-commerce practices for years, and they expect the same standards of convenience and service from their business procurement processes.
It takes time and effort for new players to scale the distribution cycle, thereby contributing to the distribution processes.

2. Competitive Advantage

Organizations tend to focus on gaining more market share with their products and services, which sometimes leads them to lose a competitive advantage over other players.
Investing in digital technologies comes with challenges of streamlining each distribution process, which makes organizations lose competitive advantage, which acts as a hindrance.

3. Decrease in the efficiency of traditional processes

No matter how good a conventional method is, it decreases in its efficiency as time goes by.
That's where digitized business practices come to the rescue, digitization of business practices efficiency of business processes increases.

4. Direct Selling

As the advent of digitization increases, organizations tend to move more towards direct selling, selling their products directly to the consumers.
Once the traditional processes get passed, multi-tiered distribution channels come into play, which initially hinders due to lack of digital infrastructure.
However, to deal with the challenges mentioned above, organizations have started to put in efforts and take necessary steps that drive the distribution business flawlessly.
The distribution business is accelerating sales by catering to customers with an all-new digitized experience integrated into all relevant business processes that deliver a consistent and personalized distribution business to all.
As distribution deals with multiple business processes, such as maintaining stocks, to multi-store management, companies often find it difficult to streamline their business processes digitally.
ERP is one such software designed to streamline and digitize these multiple business processes involved in the distribution processes, enabling the distribution businesses to achieve growth and resilience.
Fox ERP for Distribution is a one-stop solution for all.
It helps businesses achieve their digitized goals and drives profitable insights to gain a competitive advantage against the competitors.
Fox ERP for Distribution provides efficient real-time tracking of stock levels by reducing human error in inventory procurement management stock control management, and simplifying the distributional business in an organization.
With Fox ERP for Distribution, organizations can track each item in their inventory with serial numbers across the entire value chain of their distribution process.
It also helps companies manage their warehouse inventory and generate reports for numerous warehouses, all at their fingertips.

Conclusion

Digital is the future. Like any other business, the distribution business is also shifting towards digitization, which is necessary to leverage the maximum benefits from the distribution processes.
Businesses that drive actionable insights from the power of data, digital tools, and technologies tend to benefit more than those that do not.
Hence, distribution businesses too are leveraging this digital medium and making business decisions that help them in the short run and enable them to flourish in the longer run.