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Industrial distributors face a number of challenges, including:
- M&A across the sector is creating larger competitors with greater breadth and depth. To compete, distributors must offer a broader array of products than ever before.
- The large number of items carried by industrial distributors makes it challenging to manage inventory cost-effectively and distribution centers are reaching capacity.
- The lines between wholesalers and distributors are blurring as wholesalers are asked to provide fulfillment services directly to consumers. Direct-to-consumer fulfillment means distributors must embrace technology and update supply chain systems like ERP, WMS, DOM, WES and TMS.
- Customers tend to be price and service sensitive – changing distributors on a whim. Distributors must offer high levels of service and build customer relationships while pushing for more efficiency.
You need a partner to help you navigate these trends and turn your distribution operations into a competitive advantage. Fortna can help.