The Pervasiveness of Technology in Today’s Distributor

Recently I was with a distributor client preparing to assist in developing their strategic plan. The conversation turned to the role of technology within distribution. For most distributors the technology conversation turns to discussing ERP systems (Eclipse, Infor’s SX) and how to utilize technology to reduce operating costs or streamline processes. Instead the conversation turned to the pervasiveness of technology in serving customers and supporting supply chain dynamics.

Ten to fifteen years ago distributors talked about ERP systems, MS Office and websites. Today, contractors are using estimating systems that automatically query distributors for quotations, orders are placed through websites or punch-outs, change orders are documented via smartphones, tablets are part of the sales process, there are barcode apps that tie into e-commerce sites for ordering, webconferencing is a daily tool, we still have ERP systems, digital / social media is considered tomorrow’s marketing tool, variable print technology is used in marketing, companies are deploying CRM and SFA systems, general contractors are using BIM systems, we worry about attributed data, wireless warehouses, barcoding, GPS systems, EDI, VMI, SaaS, e-learning systems (or LMS), VoIP phone systems, computer networks, laptops, desktops, price management systems (epaCube, Zilliant), project management software, social media tools such as www.hootsuite.com, www.hubspot.com and www.feedblitz.com and much more.

So the world of “IT” becomes more complicated.

During our discussion we began to think of technology as a “utility”. Something you just expect to work. Essentially it becomes a tool that “enables” us to do our jobs / operate a business.

• Consider this utility as something that: 
• enables you to automate repetitive processes 
• communicate internally and externally 
• manage, and share, information 
• generate revenue opportunities 
• present your organization 
• and more. 

Which begs the question, who should be involved in technology decisions? Should the “customer” of the technology be searching for tools to help them do their job with an IT group ensuring integration and security issues or should IT consider itself as a solutions provider and proactively seek tools to solve problems?

As companies grow and companies expand their capabilities, skill sets to manage the automation and execution of the business will change. The role of IT will segment into solution seekers and technology implementers. Gathering “customer” input to determine solution sets will become more important … asking the sales organization what customers are using / need or the sales organization what tool set they need or marketing about it’s needs will all be critical to helping distribution companies lower their operating costs.

How are you handling the explosion of technology applications within your company?