There was a time when distributors were measured primarily by their ability to pick, pack and ship, then getting the right product right on time, with the least expensive price. Back then, this needed to be done on a massive scale, covering thousands and thousands of SKUs and locations.
But times have changed, and technology keeps changing the game all around us.
The distribution industry became a lot more complicated than physically moving stuff from point A to point B. Solution providers now look to their distribution partners as just that—partners. The ability to accurately pick, pack and ship is now considered a given and other service and intangibles are more important to separate one distributor from another.
That has changed many staff roles, and technology has also changed the way things get done in the industry.
1) Information Flows
With programs designed to convert real-time sales, distribution and operations disciplines have become integrated. Some elements of the supply chain and distribution are still the same. And while technology has altered performance attributes. Labor and industries will continue to adapt to these changes.
2) Inventory Automated Management
Orders enter the supply chain and proceed toward fulfillment with minimal human intervention. Information about inventory levels, product demand, and partner offerings can be transmitted as needed to facilitate more efficient inventory management. These immediate notifications allow for far more accurate projections about order volumes and more efficient inventory management to reduce costs, mistakes, and delays in product distribution.
3) Product Demand
In a vertically integrated system with closely aligned supply chain partners, sales and demand information can be transmitted, in real-time, back into the distribution network to anticipate order volumes.
4) Warehouse Workflow Optimization
Modern warehouses can be smaller with more efficient inventory management and movement. Also there is no wasted time anymore. Before automated systems and modern equipment advances, warehouse workers wasted amounts of time traveling throughout the warehouse to move product. Today, most of the product movement is facilitated by machines and warehouse management software to reduce lag time, improve accuracy with order fulfillment, and optimize warehouse floor space.
5) Traffic Management, Loading and Delivery
Today’s product distribution traffic managers can optimize distribution by using software that analyzes the best route for the lowest cost and/or fastest fulfillment. With warehouse workflow optimized for best use of floor space and movement of goods from storage to loading bays for shipment, the product distribution process can be made far more efficient.
In a time that companies like Amazon is exploring the feasibility for drone deliveries that can shorten the lead-time to delivery to just hours rather than days, we’re waiting for more shifts on the way and dramatic changes that will occur in the industry.
