Should Distributors Embrace AmazonSupply?
"Here's some good news for any distributor who's been fretting about how to compete head-to-head with AmazonSupply®. According to 'AmazonSupply: Friend or Foe?,' a new white paper by Charles Bennett and Brandon R. Brown of Business Data Links (BDL), it may be easier for many distribution operations to work with AmazonSupply, rather than try to hold out against giant e-tailers."
An April 9 post on The Informed Distributor blog lays out Infor partner BDL's thinking under the heading: "Does a hybrid model allow distributors to embrace AmazonSupply?"
The short answer is yes.
Here are excerpts:
A common interest in moving product
Like distributors, BDL says, Amazon's success depends on its ability to "push products as quickly as possible." That common interest opens up an opportunity for distributors that are actively searching for wider markets for their C and D items, Bennett told the Electrical Distributor in February 2014. "By successfully turning inventory on Amazon, the distributor takes advantage of Amazon's ability to market and advertise the products and [the associate] who supplies them," he said. And when that distributor begins generating volume on the AmazonSupply platform, "it's granted the benefit of superior listings through the Amazon search engine. This is also how the distributor can connect with its first customer base within the e-commerce realm."
The right ERP for the job
BDL encourages distributors to invest in mobile technology, alerts, in-context business intelligence, e-commerce, and intuitive product recommendations as "competitive differentiators," in order to deliver the accuracy, speed, and efficiency that customers need and expect.
Because, in the end, successful integration with AmazonSupply depends on ERP data that can automate sales, logistics, and inventory controls. The intricacy of the process depends on the distribution ERP, but, as BDL notes, "once this is complete, you may ask yourself why you waited so long."
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