Wholesale distribution is expected to be significantly disrupted by 2024 due to digital transformation. This industry will be shaped by several key trends, and distributors must adapt to these changes in order to stay competitive.
Seven trends that will drive change in 2024
1. Increased Competition
Wholesale distributors face unprecedented competition. Direct-to-customer commerce (D2C), which is growing rapidly, has put them in direct competition with their own suppliers. B2B marketplaces, led by online giants such as Amazon and Alibaba, are also disrupting the industry. Distributors must improve their ecommerce capabilities to stay relevant. This includes improving product pricing and AI-driven personalised search.
2. B2B personalisation
Personalisation of B2B will be a key trend in 2024. Modern B2B customers expect personalised, convenient and fast experiences, similar to those of their consumer counterparts. Distributors must provide a tailored customer experience, which includes communicating through preferred channels, providing customised pricing and managing individual segments.
3. Supply chains disruption
Wholesale distributors are affected by economic challenges, global conflicts and disruptions in the supply chain. Prices are rising, shipping costs are increasing, there is a shortage of labour and inventory problems. Distributors invest in intelligent business processes management to improve supply chain efficiency and sustainability . The focus will be on improving the visibility of supply chains in real-time and improving logistics.
4. Differentiation is a driving force
Wholesale distributors need to differentiate themselves on a market that is highly competitive. Wholesale distributors can do this by providing high-value services that go beyond the standard product catalogs. They can also improve delivery via digital channels and streamline operations.
5. Evolution of tech
The pace of technology change is increasing. Distributors need to keep up with the latest technology trends including cloud computing and ecommerce. It is important to develop expertise in new areas and implement change management practices.
6. Talent crunch: How to tackle it
The industry of wholesale distribution continues to struggle with the labour shortage. This is especially true for frontline roles and those that are customer-facing. In 2024, employee recruitment and retention will be a top priority. Improved employee experience, automation and chatbots, as well as highlighting social and environmental initiatives can help attract and retain talent.
7. Sustainable distribution
Wholesale distribution is becoming more environmentally friendly. Distributors are adopting eco friendly practices such as retrofitting refrigerator trailers with electric motors and designing recyclable shipping and packaging materials. Sustainability initiatives are not only beneficial to the environment, but they also improve a distributor’s reputation.
In 2024, wholesale distribution will be characterised by increased competition, a need for differentiation through innovation, talent-management, and a growing emphasis on sustainability. Distributors that adapt to these trends have a greater chance of success in a changing landscape. Wholesalers who embrace innovation, personalisation, and sustainability can make a lasting impression on the industry and stay ahead of their competition.