As the popularity of emerging digital technologies increases, so does the face of the retail and distribution industry. While digital transformation has become an important aspect for business who want to keep up and continue to grow in this environment, it has also created concerns for those businesses that may, at some point, have fallen behind the curve.
Traditionally, retail and distribution business operate on a needs-based basis – whatever the retailers’ need, the distributors would supply. Often-times, these transactions take place by means of ordering and delivering what is documented by way of a phone call, email, or spreadsheet. Today, as digital transformation becomes the focus for many organisations, retailers and distributors are forced to change the way in which they do business. It’s also not just about the way you place an order anymore. It is so much more and has changed the business environment as we know it. You can do a lot more in less time and more efficiently so. There is however also a lot more business insight which means you can react according to a lot more intelligent insights in to the business. Often termed ‘digital disruption’, this new paradigm shift is creating waves and, while some business sink, others thrive. Here’s how digital effects distributors and retailers in South Africa:
1. The dependence on technology increases
Technology, in essence, is the driving force behind digitalisation. Without it, digital transformation cannot happen. When a retail or distribution business makes the decision to ‘go digital’, they take it upon themselves to adopt a new work ethic that places technology at the centre of all that they do. Not only can this increase the price of their everyday business practices, but it can also give you that competitive advantage. Not every retail and distribution business is able to afford new technology, which can unfortunately slow their trajectory, or set it back completely.
2. The behaviour of their consumer changes
The cornerstone of technology allows for faster advancement of software and hardware, and in addition, how people use and incorporate technology and the way they acquire goods. With digital transformation comes a greater need for instant gratification, and the necessity for accessibility and an online presence. As technology makes life easier, consumers expect retailers and distributors to deliver quicker, more efficiently, and almost instantaneously. Without an online presence, retail and distribution businesses risk falling behind in their growth and sales.
3. Digitalisation changes the way people work
When applied correctly, digital transformation allows business decision makers to make better decisions regarding their processes and procedures, often cutting costs and unnecessary resources in the process. Digital transformation, in essence, changes the way in which people work and perform. Not only are they then encouraged to make use of more technology, but they are also encouraged to work more efficiently.
As part of digital transformation, retail and distribution businesses are encouraged to upgrade their processes to include modern ERP solutions that allow them to take the next step towards achieving a level of digitalisation that allows them to remain competitive. For more information on our services, click HERE
