Some distributors view Amazon with such disdain they refuse to call the online giant by name. But if "The Big A" – as some have dubbed it – poses a threat, one way to insulate your company is by prioritizing logistics capabilities, according to Cut Costs, Keep Customers with Logistics.
A robust logistics strategy helps distributors level the playing field, which has grown more slanted as an increasing number of B2B customers now demand a B2C shopping experience. This has fostered the Amazonification of the supply chain, says Wade McDaniel, vice president of supply chain solutions, Avnet Inc., Phoenix, AZ.
Customer expectations are "at a higher level than ever,” McDaniel says, so distributors must meet those expectations or risk losing business to a competitor, including Amazon.
“Logistics … is the execution of the sale,” says Christina Fennell, director of logistics, Johnstone Supply – The Ware Group, Jacksonville, FL. And an efficient logistics strategy can help a distributor and its supply chain partners save money, which results in stronger channel relationships, more satisfied customers, increased profitability and additional market share.
"We're getting increased pressure on the warehousing and order fulfillment side of the business to always have the right product on the shelf," says Mark Bray, supply chain director, ACR Supply, Durham, NC. "If you don't, you better get it there very, very quickly. Amazon leads the way and shapes people's expectations and perceptions of what warehousing can do."
Read more about how a more attentive logistics strategy can benefit your company in Cut Costs, Keep Customers with Logistics.