Wholesale distribution is undergoing a long-term transformation as the world of B2B selling is infiltrated by B2C customer preferences, including demand for personalized offers, digital experiences, and sustainable practices. The “retailization” of the industry is clearly here. Where does this leave today’s wholesale distribution companies?
The industry is at a crossroads—wholesale distributors must choose between traditional business models that don't accommodate the modern customer or embracing new technology and best practices to stay competitive. While the latter might seem like the obvious path, getting there can feel daunting. Oracle and KPMG LLP (KPMG) have come together to help wholesale distributors successfully navigate the retailization of the industry and move beyond the traditional distributor value of "pick, pack, and ship." With the right guidance—and a strategic combination of technology and best practices—you can not only provide your wholesale distribution customers with a modern experience, but you can also create new revenue streams to grow your business.
Digitizing aspects of your business is an essential component to successfully tackling the retailization of wholesale distribution. Integrating your front-, middle-, and back-office systems allows you to digitally connect data and processes to improve supply chain operations—as well as the customer experience.
Competitive wholesale distributors are leveraging modern, cloud-based enterprise resource planning (ERP) and supply chain management (SCM) platforms such as Oracle's to develop value-added services, omnichannel capabilities, and digital engagement opportunities with customers. With KPMG's wholesale distribution expertise and experience alongside Oracle's technology, wholesale distributors can open up new revenue streams such as subscription models, private-labeled products, kitting and direct-to-consumer (D2C) to increase their revenue.
These integrated front- and back-office solutions not only allow distributors to launch new business models quickly, but they can also improve operational efficiency. The automated business processes help distributors run a leaner, more efficient operation—ultimately leading to increased profit margins.
Oracle and KPMG have honed several best practices for wholesale distributors who are invested in evolving with customer demand. Here are our top 3:
In 2019, a well-known American food processing company with a portfolio of more than 50 brands launched a massive project to modernize its core business systems. As a longtime Oracle customer, this client tapped Oracle and KPMG to help the company move to cloud-based applications for finance, HR and supply chain.
This client has since successfully introduced automation into its financial operations, moved purchasing processes to the cloud despite major global supply chain disruption, and gained a single source of truth for visibility into every one of its entities.
Using the KPMG Powered Enterprise approach, the client was able to leverage advanced organizational design as well as the industry's top technology, processes, and operating models to accelerate its implementation of Oracle Cloud. The company can now continue its history of innovation and pinpoint growth opportunities across all its brands.
Oracle and KPMG have published an in-depth resource for executives interested in learning more about the retailization of wholesale distribution—and how to competitively adapt to capture the opportunities it presents. Check it out to find more information on the changes afoot in the industry, advice on how to leverage technology, and additional best practices to guide your transformation.
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Vivek Sudhakar is a managing director at KPMG with two decades of experience in IT and consulting industries and more than 14 years of experience in IT leadership. Vivek fosters long-term advisory relationships with C-level executives by providing guidance, coaching, and support.