Did you ever get the feeling that costs rise but the value proposition doesn’t change. Or you sense that you’re over spending? Or perhaps you know that someone hasn’t had the time to review “the pennies and nickels” that, when accumulated, become dollars. We’ve all heard about subscription costs that run amuck because no one remembers them. Or have heard of the stories of cell phones you’re paying for but the person left the company (or worse, multiple people), years ago. And in a penny / nickel business, which is what distribution and representation is, these count on the bottom line (they do in manufacturing too, but it is more dimes and quarters, bordering on half-dollars.) A friend of Channel Marketing Group, Ernie Countermarsh, introduced me to Tim Bertschmann who helps companies in these areas. And given the tightness of the market sans-data centers, industrial, and commodity prices, I thought some ideas on fiscal management may be something companies are considering as they enter into budget season. Tim focuses on helping companies with IT and tech operational costs. Not the major projects such as “should I do this AI project” or “implement an ERP system” or “a forecast management system” but … the basics. I’ll let him explain.

How Distributors Can Reduce IT Costs and Increase Profitability

I’m writing this article in hopes of assisting Distributors lower their monthly IT spend with little effort.  It’s too easy to simply “just pay the bills”.  With 30 years of experience in this area, we can help you get there… For distributors, technology touches nearly every part of the operation. Warehouse teams depend on connected devices and scanners. Drivers rely on smartphones, GPS and fleet applications. Sales teams need reliable access from the road. Behind it all, IT (or maybe an office manager, HR, operations or finance!) is tasked with keeping devices, networks and applications working—often across dozens or hundreds of locations. The result can be a technology environment that grows faster than anyone realizes. More devices. More wireless lines. More carriers. More contracts. More platforms. And, ultimately, more cost and complexity. Reducing technology costs shouldn’t begin with cutting services. It should begin with understanding where technology spend is creating business value—and where complexity, redundancy and limited visibility are quietly eroding profitability. Our approach is centered on a straightforward objective: reduce technology costs, create operational efficiencies and increase profitability. That means looking across the technology environment for opportunities to streamline vendors, audit mobile device management, evaluate fleet and GPS services, and simplify technology management. For distributors, three areas can be particularly valuable places to start.

Gain Control of the Mobile Device Environment

Think about how many mobile devices support a modern distribution operation. Smartphones, tablets, handheld devices and other connected endpoints may be spread across warehouses, distribution centers, drivers, sales teams and corporate offices. The challenge isn’t simply purchasing those devices. It’s managing them. As organizations grow, IT teams can find themselves supporting devices with different applications, security policies, wireless plans and lifecycle stages. Inactive devices may continue generating charges. Employees may consume significantly different amounts of data. And IT may lack a centralized view of what is deployed and where. This is where distributors should evaluate their Mobile Device Management (MDM) strategy.he latest mobility and device-management capabilities, distributors should look for opportunities to centralize device visibility, manage applications and policies, identify unused or unnecessary services and simplify device lifecycle management. The objective isn’t merely device control. It’s cost control through greater visibility. For distributors operating with lean IT resources, simplifying how hundreds or thousands of endpoints are managed can also return something equally valuable … time.

Build Connectivity Around the Operation—Not a Single Carrier

Distribution doesn’t happen in one place. Drivers move between service areas. Sales representatives visit customer locations. Warehouses may operate in urban, suburban and rural markets. A cellular carrier that performs exceptionally well at one location may perform very differently 100 miles away. That creates an important question for distributors:

• What does unreliable connectivity actually cost the operation?

A driver unable to access routing information, a warehouse employee who loses connectivity to a business application or a sales representative unable to complete a transaction isn’t simply experiencing a wireless inconvenience. Productivity is being interrupted. Distributors can evaluate whether a multi-carrier strategy could reduce that exposure. For example, Multi-Carrier SIM technology provides access to multiple cellular networks through a single SIM or eSIM, giving connected devices greater flexibility across different coverage areas. For employees whose smartphones are mission-critical, Dual Carrier Smartphone’s extend that concept by providing two carrier connections on one compatible device. Rather than issuing multiple phones or designing an entire mobile strategy around the limitations of one network, distributors can introduce carrier diversity where the business needs it most. The value isn’t redundancy for redundancy’s sake. It’s maintaining productivity when connectivity matters.

Treat Fleet Technology as Part of the IT Environment

For distributors with significant delivery or service fleets, another technology ecosystem may be hiding in plain sight. Vehicles can contain GPS equipment, smartphones, tablets, telematics devices and cellular connections supporting routing, dispatch and fleet applications. Over time, those technologies can accumulate independently. One provider supplies connectivity. Another manages GPS. Different cellular plans support different devices. Vehicles are added and removed. Equipment is replaced. Contracts renewed. A technology efficient framework specifically identifies fleet tracking and GPS evaluation as an opportunity for businesses to investigate. Instead of evaluating each line item independently, distributors should look at the connected fleet as an ecosystem. Which devices are active? How many cellular lines are supporting them? Are multiple carriers or plans being managed separately? Are inactive devices still generating monthly expenses? Could connectivity and device management be consolidated? Finding even small inefficiencies across a fleet can become meaningful when multiplied by the number of vehicles and twelve months of operating expenses.

The Bigger Opportunity: Simplification

Technology cost reduction doesn’t necessarily mean choosing the least expensive provider. For distributors, the larger opportunity is often simplification. Fewer unnecessary services. Better visibility. Smarter carrier utilization. Centralized device management. Less administrative overhead. Greater resilience. Distributors should look at broader cost-reduction methodology including opportunities such as internet circuit consolidation, cellular plan optimization, communications platforms, cloud and data storage, and energy services. That broader perspective matters because technology decisions rarely exist in isolation. Looking across the environment can uncover savings that an individual carrier or service review might miss. Tim Bertschmann is the Founder & President of the Bertschmann Group…helping businesses simplify their technology, telecom, and cloud infrastructure. With decades of industry experience, Tim focuses on building lasting client relationships rooted in trust and results. To learn more, contact Tim Bertschmann or visit www.bertschmanngroup.com

Take Away

1. Okay, this is not the “exciting” part of the business. It’s boring, tedious, and typically delegated. Maybe someone has a spreadsheet managing this? Frequently it may occur once a year, if you are “best in class”. But, in reality, there should be a process.
2. Tim has done this hundreds of times for companies in a variety of industries and told me he can pretty much guarantee he’ll find something within everyone.

As you come out of budget season and the mandate is to “manage costs / zero-based budgeting on existing line items”, Tim’s process makes sense to help uncover costs that you can redeploy to needed investments.

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