COVID-19’s Impact on the Distribution Industry
Distribution continues to be an industry built on supplier and customer relationships; however, COVID-19 has accelerated the transformation of how distributors interact with their employees and customers.
Since before COVID-19, selling was already rapidly moving to a virtual space, driven by changing buyer preferences for online commerce. Now, businesses are continuing to adopt this approach for a large portion of their transactions, based on both necessity and the realized gains in productivity.
This has implications on what distributors do in the short-term, mid-term, and long-term.
What is the Right Answer?
In the short-term, the right answer is to focus on responsibly protecting prices and margins through agile, dynamic management, and to do so based on an understanding of the market signals, shifting customer needs, volatile supply chains, volatile commodity costs, and strong pricing discipline throughout the business.
In the mid-term, sales teams must be enabled to respond in a more agile way to customer demands and potential new competitors — all while operating remotely from both customer and head-office.
In the long-term, digital transformation projects must focus on sales process transformation and optimization.
For more information, we invite you to read this eBook.