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BlueBridge One:
Trends in wholesale
distribution, 2017.
2
An unprecedented era of
disruptive change.
Industry facing period of extensive change and growth from:
-  Rapid developments in technology
-  Altered patterns of consumer behaviour
-  Changing customer expectations and requirements
-  Emerging competitors from non-traditional sources
-  Economic and political uncertainty following Brexit
3
Surviving and
thriving in 2017
In order to best face the challenges that are ahead for the next twelve
months, wholesale distribution businesses will need to:
§  Invest time and money into staying up to date with the latest technology
§  Make customer service a priority
§  Look at delivery speeds and services as a mission critical metric
§  Understand the biggest industry trends that are likely to make an
impact
4
TREND #1:
A new competitive
landscape
The competitive landscape is changing in 2017, with rivalry in the
marketplace coming from:
§  The physical expansion of known and existing competitors expanding
their offerings geographically
§  Known competitors venturing into multi-channel selling, launching their
products through new outlets such as e-commerce
§  The boom of less traditional competitors, such as retailers, moving into
the wholesale distribution space e.g. Amazon
5
The threat of
disruptive
competitors
Disruptive competitors, such as Amazon, are moving into wholesale
distribution territory, with the result that:
§  Alternative distributors can offer multiple lines of trade
§  Disruptors often benefit from low overheads, minimal infrastructure,
and can maximise the latest technologies
§  Non-conformist disruptors don’t adhere to standard working practices,
and are re-shaping and re-defining wholesale distribution
§  Disruptive competitors are looking to offer new ways of doing things,
and drive changes in customer perceptions and expectations.
6
Challenges of competing
with disruptors
To stay on a level footing with disruptive competitors, established
wholesale distribution businesses need to:
§  Understand the value, or perceived added value, offered by new rivals
§  Predict how changes to working practices and the use of impressive
technology will affect customer satisfaction and expectations
§  Consider how to minimise the effect of an increasingly competitive
marketplace on their own enterprise
§  Review and upgrade their own strategies and procedures
§  Embrace and employ tactics used by emerging brands
7
TREND #2:
The Brexit
impact
The decision to leave the European Union has caused certain times ahead
for wholesale distributors:
§  Inflation set to hit prices in 2017
§  Pound falling and rises in global commodity prices impacting the supply
chain
§  Transactional changes, such as tax regulations, may come into force
when dealing with the EU
§  Decrease in customer confidence and lower intent to buy
§  Ambigious future, with unknown trade negotiations ahead
8
Opportunities
following Brexit
Brexit may also have a positive impact for wholesale distributors who are
equipped to spot and maximise the opportunities available:
§  Exporters already benefitting, with the currency change making it
cheaper for international customers to buy from you
§  Likely new trade deals with countries outside of the EU
§  Growth in short term sales for some sectors, such as fashion, as
consumers bring purchases forward to beat long term inflation
§  Emphasis on ensuring entire operation is running at optimum efficiency
to cope with coming demands
9
TREND #3: Customer
at the heart
Savvy shoppers have shifting expectations as they buy around the clock
and from a variety of devices, and have less loyalty to individual brands.
Wholesale distributors need to strive to meet new standards of care and
engagement in 2017.
§  Industry focus is moving away from product, and towards customer
service
§  Improving customer care encourages brand loyalty in a disruptive
landscape
§  Delivering a cohesive customer experience across various platforms is
vital for multi-channel sellers
§  Add and upgrade channels for customer service, such as online chat
10
TREND #4: AI and
emerging tech
Advancements in the development of future tech look set to impact
wholesale distribution further in 2017, as enterprises explore or adopt
systems such as:
§  Robotics
§  The Internet of Things
§  Check-out less shopping, as seen at Amazon Go
§  Drone and autonomous delivery
The use of these technologies affects warehouse management, inventory
handling, order fulfilment, delivery and the retail experience.
11
TREND #5: Faster
delivery required
The increased pace of trading and digitally enabled consumption means
that customers now expect a more immediate delivery experience.
§  Delivery speed now becoming a differentiator for customers when
selecting a brand to buy from
§  Time to fulfil orders should now be a key metric for wholesale
distributors
§  Workflow efficiencies should be reviewed and improved to make
processes quicker
§  New delivery solutions can be explored, such as Click and Collect
§  Technology can be utilised to increase the pace of order processing or
delivery speeds.
12
Summary
§  2017 will be another year of digital revolution and a rapid increase in
pace
§  Customer expectations are changing, and wholesale distributors need
to anticipate and ultimately meet these new demands
§  Emerging technology will continue to change and impact the way we
work and our view of the shopping experience
§  Brexit will bring economic uncertainty, with both challenges and
opportunities for wholesale distributors
§  Emphasis is moving towards customer relationships and providing the
best possible standards of service
§  Competition will come from less traditional and unexpected sources
§  Delivery speed should be considered a mission critical metric
13
Why BlueBridge
One?
§  Most experienced NetSuite integrator operating across the UK
and EMEA
§  Award winning NetSuite solutions for multichannel distribution
§  Wealth of organisational knowledge for developing Wholesale
Distribution solutions
§  Provide business solutions to 350+ growing and mid-size
companies
§  Customer deployments range from 2 to 100+ NetSuite users
§  Committed to delivering value and developing enduring
partnerships
§  Rapid deployment to ensure fastest time to recoup ROI
14
Full white paper
§  Download the full white paper: The outlook for wholesale
distribution in 2017
§  http://www.bluebridgeone.com/s.nl/it.I/id.150/.f
15
BlueBrid
www.bluebridgeo

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BlueBridge One: Trends in wholesale distribution, 2017.

  • 1. 1 BlueBridge One: Trends in wholesale distribution, 2017.
  • 2. 2 An unprecedented era of disruptive change. Industry facing period of extensive change and growth from: -  Rapid developments in technology -  Altered patterns of consumer behaviour -  Changing customer expectations and requirements -  Emerging competitors from non-traditional sources -  Economic and political uncertainty following Brexit
  • 3. 3 Surviving and thriving in 2017 In order to best face the challenges that are ahead for the next twelve months, wholesale distribution businesses will need to: §  Invest time and money into staying up to date with the latest technology §  Make customer service a priority §  Look at delivery speeds and services as a mission critical metric §  Understand the biggest industry trends that are likely to make an impact
  • 4. 4 TREND #1: A new competitive landscape The competitive landscape is changing in 2017, with rivalry in the marketplace coming from: §  The physical expansion of known and existing competitors expanding their offerings geographically §  Known competitors venturing into multi-channel selling, launching their products through new outlets such as e-commerce §  The boom of less traditional competitors, such as retailers, moving into the wholesale distribution space e.g. Amazon
  • 5. 5 The threat of disruptive competitors Disruptive competitors, such as Amazon, are moving into wholesale distribution territory, with the result that: §  Alternative distributors can offer multiple lines of trade §  Disruptors often benefit from low overheads, minimal infrastructure, and can maximise the latest technologies §  Non-conformist disruptors don’t adhere to standard working practices, and are re-shaping and re-defining wholesale distribution §  Disruptive competitors are looking to offer new ways of doing things, and drive changes in customer perceptions and expectations.
  • 6. 6 Challenges of competing with disruptors To stay on a level footing with disruptive competitors, established wholesale distribution businesses need to: §  Understand the value, or perceived added value, offered by new rivals §  Predict how changes to working practices and the use of impressive technology will affect customer satisfaction and expectations §  Consider how to minimise the effect of an increasingly competitive marketplace on their own enterprise §  Review and upgrade their own strategies and procedures §  Embrace and employ tactics used by emerging brands
  • 7. 7 TREND #2: The Brexit impact The decision to leave the European Union has caused certain times ahead for wholesale distributors: §  Inflation set to hit prices in 2017 §  Pound falling and rises in global commodity prices impacting the supply chain §  Transactional changes, such as tax regulations, may come into force when dealing with the EU §  Decrease in customer confidence and lower intent to buy §  Ambigious future, with unknown trade negotiations ahead
  • 8. 8 Opportunities following Brexit Brexit may also have a positive impact for wholesale distributors who are equipped to spot and maximise the opportunities available: §  Exporters already benefitting, with the currency change making it cheaper for international customers to buy from you §  Likely new trade deals with countries outside of the EU §  Growth in short term sales for some sectors, such as fashion, as consumers bring purchases forward to beat long term inflation §  Emphasis on ensuring entire operation is running at optimum efficiency to cope with coming demands
  • 9. 9 TREND #3: Customer at the heart Savvy shoppers have shifting expectations as they buy around the clock and from a variety of devices, and have less loyalty to individual brands. Wholesale distributors need to strive to meet new standards of care and engagement in 2017. §  Industry focus is moving away from product, and towards customer service §  Improving customer care encourages brand loyalty in a disruptive landscape §  Delivering a cohesive customer experience across various platforms is vital for multi-channel sellers §  Add and upgrade channels for customer service, such as online chat
  • 10. 10 TREND #4: AI and emerging tech Advancements in the development of future tech look set to impact wholesale distribution further in 2017, as enterprises explore or adopt systems such as: §  Robotics §  The Internet of Things §  Check-out less shopping, as seen at Amazon Go §  Drone and autonomous delivery The use of these technologies affects warehouse management, inventory handling, order fulfilment, delivery and the retail experience.
  • 11. 11 TREND #5: Faster delivery required The increased pace of trading and digitally enabled consumption means that customers now expect a more immediate delivery experience. §  Delivery speed now becoming a differentiator for customers when selecting a brand to buy from §  Time to fulfil orders should now be a key metric for wholesale distributors §  Workflow efficiencies should be reviewed and improved to make processes quicker §  New delivery solutions can be explored, such as Click and Collect §  Technology can be utilised to increase the pace of order processing or delivery speeds.
  • 12. 12 Summary §  2017 will be another year of digital revolution and a rapid increase in pace §  Customer expectations are changing, and wholesale distributors need to anticipate and ultimately meet these new demands §  Emerging technology will continue to change and impact the way we work and our view of the shopping experience §  Brexit will bring economic uncertainty, with both challenges and opportunities for wholesale distributors §  Emphasis is moving towards customer relationships and providing the best possible standards of service §  Competition will come from less traditional and unexpected sources §  Delivery speed should be considered a mission critical metric
  • 13. 13 Why BlueBridge One? §  Most experienced NetSuite integrator operating across the UK and EMEA §  Award winning NetSuite solutions for multichannel distribution §  Wealth of organisational knowledge for developing Wholesale Distribution solutions §  Provide business solutions to 350+ growing and mid-size companies §  Customer deployments range from 2 to 100+ NetSuite users §  Committed to delivering value and developing enduring partnerships §  Rapid deployment to ensure fastest time to recoup ROI
  • 14. 14 Full white paper §  Download the full white paper: The outlook for wholesale distribution in 2017 §  http://www.bluebridgeone.com/s.nl/it.I/id.150/.f