A few years back, beverages distributors were reluctant to incorporate the information technology in their day-to-day activities. They had discovered the potential of the technology only in accounting and order processing. Wine, alcohol, spirits and beverages distributors were that late in adopting the technology because it had been a virtually recession free business. They were practically getting consistent annual growth and comfortable margin. In simple words, money was easily spinning around this business. They had their own protected territories and supply chains.
There were some wine beverage distributors in the UK having little experience with the technology. However, only a little money was spent on the technology because it was believed to be unnecessary.
When There Was a Change
In last two and a half decade, we have seen some incredible changes. The money still spins around this business. However, once they had the license to print $100 and now they have the license to print $50. The comfortable margins begin to shrink as a new phenomenon, consolidation came to be.
Adopting the Technology
With time, consolidation became a commonplace. This made distributors to recognize the importance of technology. First of all, the technology was adopted to automate operations. After that, the technology added efficiencies and made distributors the 21st-century distributors.
Now, distributors have incorporated ordering technology in the business. It has improved the way inventory is managed and purchasing system works. With the help of technology, the business hardly lands in an out-of-stock situation. Now, they have transportation management system for fleet management. Warehouse automation systems have reduced cents-per-case efficiencies.
In recent years, distributors have adopted software for business analysis. Distributors use this software to analyze the back office data. This helps in making the right decisions that can improve both the efficiencies and effectiveness of the business.
The POS Tracking Technology
Point-of-sale marketing is an area in which the cost can be reduced to a significant level. Most of the distributors list payroll, POS and fuel as their top 3 expenses. Samples, menus, signs, displays, permanent and other promotional items that are displayed at the point of sale is listed as the second most expensive deal in the business. By deploying POS tracking technology, a distributor can save a decent amount of money and also improve operational efficiency.
The internet has played the role of a game changer in this business. Now, you can track the exact location of your delivery vehicles to make sure that the driver is going on the right track. Plus, the internet has huge space to market your business. In the present scenario, online spirits distributors in the UK offering duty-free products cannot run the business efficiently. A wholesale beverage distributor who is reluctant to the technology is going to lag behind in the race.