Ken’s Corner – Invest in Technology, Cautiously
My concern of the moment is technology and distributor websites.
Technology is a huge challenge for our industry. I’ve heard it said that the electrical channel, especially distribution, is years behind the rest of the world. Maybe so, I’m not smart enough to venture an opinion on that one.
The latest technology challenge, and it has been around for a few years, is websites and eCommerce.
And while we all love Amazon, it isn’t taking over the electrical industry tomorrow but it does generate conversations about the need for a website that does more than show your locations and supplier list.
My concern is that distributors, especially small and mid-size ones, are not doing much.
My concern is that I believe that, as an industry, we fall into three camps.
- We don’t think all this is important. I’ve had electrical distributors tell me that they are not ready for e-commerce and neither are their customers. Depending on the geography and the customer base I believe some of them could be right. What I’m hoping is they start to slowly and methodically address the situation today so that next year, or in five years, when it becomes a dealbreaker they are onboard and running with something.
- Then you have those that are sort of in the middle. They’ve got some technology, not just e-commerce, but CRM, accounting programs, social media, and others. The issue is they are just maintaining. They’re not thinking about what happens next and they’re not doing a reasonable job of looking around the industry (and other industries) to see what’s going on.
- Then we have my favorite, and last, group. These guys all think they can become AMAZON. Amazon is not better than the various technologies that most distributors have, it’s just different. A lot of these guys tend to want to buy every new piece of software, hardware, and anything else that comes on the market.
Lately, I have been speaking with several technology consulting firms. Some things I already have been taught seem to be appropriate to say at this point. Many say they have all the answers, cradle-to-grave, and of course, you will need all the options on day one. And that they are the perfect one-stop shop
It’s the cradle and grave comment that concerns me. No electrical distributor, no consultant, no manufacturer, or any other business you can think of is good at everything. So be very careful when going all-in on one solution off the deep end of the pool. There are risks, however, in piecemeal approaches, the first group will tell you that. So, whatever you do, I strongly encourage you, no matter where you are on this journey, to walk slowly with your eyes wide open and don’t rush. Look at multiple solutions and approaches.
I’ve talked to a number of technology companies. I know David Gordon has also. There’s much going on and we may be just able to guide with from our experience and conversations. Channel Marketing Group also has some services to help you get feedback from your customers as you travel this journey.
Closing. One of my weaknesses is that I can’t talk without preaching. That’s never going to change. I do appreciate your indulgence. Let me know what you think about distributors and their investment in technology. What is your experience? Your concerns?