Digital Exclusive: Four Distribution Disruptors in 2019

For distributors, the rate of change within an already volatile, ultra-competitive market seems to be accelerating rather than slowing down. As mid-size and smaller distributors battle for market share with bigger organizations and of course, Amazon, relevance has become a critical success factor. Unfortunately, smaller companies may not be able to win if they focus on competing against the massive logistics capabilities of Amazon, or the giant catalogs and sophisticated tech stacks of the mega distributor. The good news, however, is that there are significant opportunities – based on smart B2B commerce strategies – that can only be pursued by more nimble organizations.

These opportunities – what we’ve defined over the past few years here at Insite as "disruptors" – can appear to be challenges at first glance. A deeper look, however, reveals some real advantages for small to mid-size distributors that can be used not only to stay alive, but to thrive in this increasingly complex B2B marketplace.

Once again this year, Insite’s B2B commerce experts have identified the top disruptors for distributors in 2019. Our blog series will uncover the hidden opportunities within these disruptors – and ways to start building smarter, more advanced B2B commerce strategies to take maximum advantage of each and every one.

Stay with us as we summarize 2019’s disruptors, and then explain more in posts each week over the next month. To begin, here are the primary factors leading distribution disruption in 2019:

1. Manufacturers Assessing the Digital Readiness of their Distribution Channels. We’re starting to see many manufacturers asking for proof of “digital readiness” from their distribution channels. Although many manufacturers want to remain loyal to their channels, they can’t allow those channels to fail and potentially damage revenue potential or even their brand reputation. In the past, manufacturers have tried rewards to accelerate the digital transformation of their distributors but we see that strategy changing in 2019. More and more, the competitive intensity of the market is forcing manufacturers to mandate digital readiness on the part of their distributors.Although pressure from these new requirements might cause some sleepless nights, it does bring the need for a more aggressive plan to increase digital capabilities to the forefront. The executive suite may be more likely to allocate more budget faced with these mandates. Manufacturers focused on digital readiness also provide an opportunity for small to mid-sized distributors to develop strategies that aren’t geared toward a 100 percent online buying solution. Distributors can take advantage of this disruption to plan and design hybrid B2B commerce environments that adapt to the needs of the complex B2B market.

This blog originally appeared on www.insitesoft.com. Follow this link to continue reading.