Direct-to-Consumer Distribution is on the Rise
Remember the good old days when a manufacturer needed a distributor to get their products in the hands of their consumers? How about when retailers relied exclusively on distributors rather than selling directly to consumers? Those days are long gone but new trends are emerging. There is another way you can maintain growth and create new revenue streams by adapting to the direct-to-consumer (DTC) distribution model.
Increased Pressure and Urgency to Sell DTC
An online shopper can order just about anything from the Internet. You can literally buy used cars through your phone and have them shipped to your door. You can also stop by a local kiosk to see what’s available and take your new car home that day.
In either scenario, these online shoppers are cutting out the traditional dealerships that most carmakers utilize. The DTC carmakers get to offer a better customer experience, avoid dealer mark-ups, lower costs and increase profit margins. However, if you’re a wholesale distributor, this is not good news.
DTC is a Cultural Shift
Companies that have successfully shifted to a DTC model all required a significant change in business culture and internal way of doing things. Once you define your eCommerce strategy, you’ll likely see the potential impact it can have on the Sales function existing in the business.
For example, a shift towards a DTC strategy may require your organization to scale the new processes to support these additional responsibilities. It may be necessary to update your data and analytics software to centralize your information so you can manage end-to-end distribution processes more effectively.
Smart distributors seize this as an opportunity to assess the way they do business and vet processes that may no longer be optimal. Done well, those companies eventually adopt modernized processes that help differentiate them from competitors.
Moving towards a DTC strategy means you need to scale your operation to support these additional responsibilities. It may be necessary to update your data and analytics software to centralize your information so you can manage end-to-end distribution processes effectively.
Accelerate Growth with Actionable Insights
There is a mountain of data running through your systems but many companies fail to use it to their advantage. The right infrastructure and software will help you see the patterns that indicate opportunity or potential risk.
Sage 100cloud for Distribution, for example, is a modern solution that helps you plan when you need to build up inventory or run on less inventory, depending on demand and cash flow. You can make more accurate commitments or allocations based on supply since you know where and when inventory will be available or not.
Sage 100cloud provides you with actionable insights that help you make data-driven decisions, including:
- Which products sell/don’t sell in which markets?
- Which international markets should we expand to?
- Which customers drive the majority of revenue?
Our Oasis Consultants Know the Way to DTC
Shifting to DTC requires more than a great eCommerce website. Incorporating direct-to-consumer processes may require considerable shifts in the way you work and your corporate culture. It may require restructuring, making additional investments or adding new staff.
Oasis is your local NetSuite, Sage 100cloud and Workday Adaptive Planning partner that offers expertise in accounting, human resource management, and custom software development. We have your long-term plan and business strategy in mind from the get-go.
We don’t just sell software. We are passionate about understanding your company’s processes and committed to your success and reputation long after the go-live date. Providing you with skilled consultants and developers for support, the ability to ask for help, discuss best practices, buying options, pricing, products, and more.
As industry experts, we possess a profound understanding of the software and the knowledge and skills to best tailor your implementations to your individual business needs.
Oasis Solutions has offices in Louisville and Lexington, KY, TN, and NC. Let us help you set your team up for success by implementing the best tools for your business.
When you’re ready, the specialists at OASIS can help you get up and running quickly with customized inventory and professional services as well as expert hands-on training. Contact the experts at Oasis Solutions today.