7 signs you need bi - distributors

7 SIGNSYOU NEED BUSINESS INTELLIGENCE

DISTRIBUTORS

A publication of

The wholesale distribution sector was worth$6 trillion in 2014.

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For the most part, the distribution industry has

weathered the economic storm of late. Despite

warnings of a

slump in the market, the wholesale distribution

sector was up in 2014 to a staggering $6 trillion.

With sectors such as manufacturing and retail

sales seeing double- digit percentage growth in

the last year, the market is undoubtedly going

from strength to strength.As the market continues to flourish, many industry

challenges are now coming from much further

afield. From globalization to increased competition

and the rising costs of overheads, many distributors

now need to focus and ensure that their entire

operation is aligned with demand.

This is something that can be challenging in a

growing business.

These inherent trials form the backbone of many a

distributor’s downfall and are early warning signs

that you need a Business Intelligence solution in

place to mend the cracks and create a solid

business foundation.Business Intelligence (BI) solutions automate

the task of analyzing data, providing a better

understanding of

company performance, creating a proactive sales

culture offering a complete customer view for the

entire business and streamlining the sales and

marketing process.

7 Signs You Need BI: Distributors


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1. Remaining competitiveThe growth in competition has been incredible and the

pressure upon smaller distributors in particular is

mounting. As many companies seek to buy into different

products, markets or even countries, distributors are

likely to be competing head on with deep-pocketed

companies that dominate the market.

Remaining competitive is vital if any company is ever to

succeed and technology is one of the only ways to do

this. BI solutions level the sales playing field, allowing

smaller companies to compete directly with the industry

giants. Spotting valuable sales opportunities before your

competition is one of the best ways

to outsmart them. The ability to understand where sales

lie in seconds will give you the edge every time. You can

act quickly to capitalize on these opportunities before

the competition even catches a scent of it.

What’s more, you can provide a personal level of

customer service where the ‘big boys’ simply can’t. With

instant insight into each and every one of your

customer’s buying habits, you can create personalized

campaigns, special offers and provide a

customer service experience to make them feel valued. And what

could be more important? A happy customer is a loyal customer. SHARE THIS EBOOK

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2. Rising costs: needing additional revenueIn order to succeed as a distributor, all business resources and operations

must be aligned with customer demand at the very best price. The need for

access to timely sales data when coupled with a responsive sales operations

is paramount and will minimize costs, poor sales margins and boost profits.

Without the complete visibility of transactional information such as sales

value, GP% and margin, companies are struggling to manage diverse

product ranges at the best possible value.

A BI solution will provide a complete view of your entire distribution

operation. From a sales point of view, this level of visibility will empower

your team to make smart business decisions that result in more profitable

sales. From identifying their top GP% line items to spotting opportunities to

grow your share of the customer wallet.

Generating additional revenue is simple with a BI solution, with easy cross

and switch selling opportunities being brought to light. If a customer is

purchasing nuts from you but not bolts, why not offer a targeted discount on

bolts to get their custom? What’s more, as this way of thinking becomes

second nature for your sales team, they’ll begin to find more opportunities

of their own accord.



3. Difficulty identifying growthDistributors work in very competitive markets and it’s for

that reason that every opportunity for growth must be seized

with both hands. The

potential for growth within the distribution sector is huge, from

diversifying to international markets to extending or focusing on

a particular product.Introducing a BI solution to your business can ease the

identification of growth opportunities and decision-making

process. Analyzing your company’s historical sales and

transactional data, trends will begin to appear in the data that

will point you in the right direction for success.Are sales storming ahead in Europe? Is your automotive

distribution channel closing 50% more business than last year?

It is this level of insight that will afford your company the

ability to make well informed, fact-driven decisions, rather

than taking a punt on gut-feeling.

4. Little customer loyaltyThe thing with distributors is that, for the most part, they rely

on one or two big customers to keep healthy revenues

flowing. It doesn’t bear to think about losing a high-spending

customer and the amount of revenues you’d lose along with

it. While it is paramount to keep your biggest accounts happy,

your smaller accounts are equally as important. They may not

attract six-figure sums, but the thousands they do bring in are

just as important to keep business ticking over.Any good BI system will integrate your sales data with your

customer information and provide you with a complete

overview of each account. Not only will this allow you to stay

on top of their performance, but will also act as a central

information point for your entire business and you can

provide a level of service that is truly second to none.

Potential growth for the distribution sector is huge.

“

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BI means that you can become a trusted advisor to your

customers, extending the user experience far beyond the first

initial sale. This doesn’t mean waiting for customers to come

to you with questions or queries, but instead going to them

with information and advice. If you’ve discovered that your

customers regularly buy a particular item from you, then offer

up some advice and add value. You’ll be raising your profile

and setting their mind at rest when it comes to re-ordering

from you. SHARE THIS EBOOK

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5. Forecasting demandThe distribution industry is built upon forward planning and

a minuscule margin of error. So when it comes to

forecasting customer demand, data should be driving most

of your planning and decision-making, yet numerous

businesses continue to rely on gut instinct and feelings to

make their supply decisions.Guess work and intuition alone are no longer acceptable

decision making tools, especially when there is an endless

supply of data stored in every single business waiting to be

used. This data, when analyzed and presented correctly can

provide a level of insight into customer demand that is truly

second to none. You can monitor spending habits down to a

granular level of detail.

A tool such as BI will feed on your company’s past sales

data, tracking and identifying customer behavior to

highlight trends and average demand throughout the year.

Within seconds you will be able to understand the average

demand of your entire customer base and can use this

information to forecast with precision.

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Opportunity B6. Seeking to improve efficiencies

Any good distributor will be constantly seeking to improve the

efficiency of their business. The pain points of many comes from

not having enough time, money, resource and the like.

From a sales perspective, time is money. There is little use in wasting

hours ringing around hundreds of prospects and existing customers with

no real talking points in the hope of making a lucky sale. What’s more,

waiting around for orders to fall at your feet is just as useless and not

making the best use of the resources at your disposal.

BI software is the key to proactive sales calls. Trawling your data for

valuable sales opportunities, it will feed your team with the information

they need to make smart calls that count. 10 well informed calls would

have a far better closing ratio than 100 cold calls. Concentrating on key

areas that will result in sales will ensure that time isn’t being wasted

talking about the weather or last night’s game, but will guarantee that

every single call counts and sparks an interest in your offering.

Opportunity A



7. Need to monitor individual productsAs a distributor, it’s highly likely that you’ll be managing hundreds, if not

thousands of products, ensuring they get to the right customer, at the right

time and for the right price. Managing these thousands of products from a

sales performance point of view is often an uphill battle. With thousands of

products, knowing which of those are your best sellers, your most profitable

and even your worst sellers can take hours to decipher.

With a BI solution, you’ll have a clear picture of your entire

product portfolio, from GP% to margin and even which customers

have purchased that product in the last 12 months. Or more

importantly, which haven’t bought a particular product from you

but should be.



A complete overview will help you to better manage your

products, as you will know which you need to be pushing as a

team and which you could potentially discontinue due to a lack

of sales. The key here is to concentrate on what makes you the

most money at the best cost. A BI solution will bring all of this

information to light in seconds, removing the need to interrogate

endless rows of sales data.

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sales-i is a powerful cloud based Business Intelligence

solution that joins your ERP data together with your CRM data

to give you actionable sales information for each and every

customer. We turn a good sales person into a great one.

www.sales-i.com

STREAMLINEYOUR SALES AND MARKETING PROCESS



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7 signs you need bi - distributors

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