The manufacturing and distribution industry will see transformative change this year––find out what businesses are doing to stay ahead of their competitors.

1. Post Link: 5 Predictions for Manufacturing and Distribution in 2016
5 Predictions for Manufacturing and Distribution in 2016
For the last decade, retailers have been increasing the ease of shopping and the speed of
product delivery as they respond to the on-demand requirements of consumers. To better
support and service these retailers, wholesalers have also begun to change their processes and
implement technology to increase the speed and ease of ordering and fulfillment. As “on-
demand” becomes the standard in 2016, here are 5 predictions for how B2B businesses will
keep pace.
5 Predictions for Manufacturing and Distribution in 2016
1. B2B Ecommerce Goes Mobile
B2B ecommerce has been a growing part of manufacturers’ and distributors’ sales mix over the
past few years and is projected to grow to over $1 Trillion in the US alone by 2020. To date,
most of these transactions have been conducted through supplier websites tailored to the B2B

2. purchase process or online marketplaces. However, according to Forrester Research, 52% of
B2B buyers are now doing product research with their smartphones to search for products,
browse catalogs, and read reviews.
In 2016, we will see wholesalers increasingly adopt native mobile apps that provide on-demand
ordering experiences and convert buyer research into sales. As most buyers assess their
inventory needs as they walk their shop floors, these mobile apps will provide buyers with the
ultimate convenience of rapidly building orders on the go and then instantly submitting them to
their suppliers. By complementing their other sales channels with mobile and enabling
customers to submit orders from anywhere at anytime, manufacturers will be in a position to
receive and process them faster than ever before.
2. Field Sales Role as Strategic Advisors Expands
With B2B ecommerce technology’s rapid proliferation throughout the wholesale distribution
industry, the in-person sales process will no longer concentrate on simply taking orders.
Instead, sales representatives will take on a more strategic role with customers at in-person
meetings. Sales reps will increasingly focus these discussions on ensuring that the buyer has
the right product assortment and optimal on-hand inventory levels to meet the immediate
shopping needs of consumers. In addition, they will focus more time on merchandising to
garner consumer attention and store employee training to ensure they can give shoppers
expert, personal advice at the point of purchase.
In 2016, manufacturers and distributors will move beyond providing just digital catalogs and
mobile order writing solutions. They will extend these solutions to include customer-specific
information and product reports at their sales reps’ fingertips. They will provide data-driven
insights like customer order history, sales performance reporting, and top products that buyers
are missing. Mobile solutions will also include ideal merchandising plans and key selling tips.
Delivering this information on mobile devices will make it easier for sales reps to provide a
more consultative sales experience and allow retailers to better cater to their shoppers’
immediate needs.
3. Focus on Technology Adoption
In 2016, manufacturers and distributors will continue to invest in B2B Commerce technology
that improves their ability to respond to the on-demand economy. However, they are quickly
recognizing that without comprehensive adoption by their sales reps, back-office staff, and
customers. they won’t fully realize a return on their investment.

3. 2016 will be the year manufacturers and distributors make a commitment to actively driving
adoption by key stakeholders. B2B ecommerce initiatives will be actively marketed to
customers based on how the convenience, ease of use, and speed of the experience will
benefit their operations. Wholesalers will also look to align their processes and consolidate
order management on a single platform by working with reluctant sales reps to adopt order
writing software.
4. Ensuring a Seamless Integration Across Systems
Manufacturers and distributors have ERPs and other systems to run their businesses and have
added best-of-breed solutions, such as order management, inventory management, and
ecommerce around these legacy systems to expand their capabilities. For wholesalers to
respond to the needs of the on-demand economy, they need a continuous flow of data that
gives employees maximum visibility across the business.
In 2016, manufacturers and distributors will prioritize system integration and automated
information transfers. For instance, to reduce backorders and manage delivery expectations,
inventory management systems will sync directly to B2B Commerce platforms to ensure that
sales reps and customers have stock levels on products prior to submitting orders. At a
minimum, order management systems will be tightly connected to ERPs and logistics systems
to deliver faster order fulfillment. B2B software vendors will also emphasize integrations as they
become a deciding factor in purchase decisions.
5. Renewed Focus on Logistics for Faster Fulfillment
In 2016, wholesalers that want to stand out in the on-demand economy will increase the
flexibility of their supply chains to deliver the breadth of their catalogs fast. For many retailers
(especially independents), carrying enough inventory to meet the needs of consumers can be
expensive and fraught with risk.
Since manufacturers and distributors sell to many retailers, they can spread that risk out across
their customer base. By offering short turnaround drop-ship terms for small orders either to the
store or to the end consumer, wholesalers enable retailers to showcase the full range of their
products and allow them to deliver on the on-demand promise without taking on the additional
inventory risk. Even if wholesalers don’t go this far, they will reorient their fulfillment processes
to get products onto store shelves faster.

4. This post originally appeared on Multichannel Merchant.
Post originally located at: https://www.handshake.com/blog/manufacturing-and-distributi-
n-predictions/
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