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BlueBridge One: Trends in wholesale

distribution, 2017.

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An unprecedented era of disruptive change.

Industry facing period of extensive change and growth from:

-  Rapid developments in technology

-  Altered patterns of consumer behaviour

-  Changing customer expectations and requirements

-  Emerging competitors from non-traditional sources

-  Economic and political uncertainty following Brexit

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Surviving and thriving in 2017

In order to best face the challenges that are ahead for the next twelve months, wholesale distribution businesses will need to:

§  Invest time and money into staying up to date with the latest technology

§  Make customer service a priority

§  Look at delivery speeds and services as a mission critical metric

§  Understand the biggest industry trends that are likely to make an impact

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TREND #1: A new competitive landscape

The competitive landscape is changing in 2017, with rivalry in the marketplace coming from:

§  The physical expansion of known and existing competitors expanding their offerings geographically

§  Known competitors venturing into multi-channel selling, launching their products through new outlets such as e-commerce

§  The boom of less traditional competitors, such as retailers, moving into the wholesale distribution space e.g. Amazon

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The threat of disruptive competitors

Disruptive competitors, such as Amazon, are moving into wholesale distribution territory, with the result that:

§  Alternative distributors can offer multiple lines of trade

§  Disruptors often benefit from low overheads, minimal infrastructure, and can maximise the latest technologies

§  Non-conformist disruptors don’t adhere to standard working practices, and are re-shaping and re-defining wholesale distribution

§  Disruptive competitors are looking to offer new ways of doing things, and drive changes in customer perceptions and expectations.

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Challenges of competing with disruptors

To stay on a level footing with disruptive competitors, established wholesale distribution businesses need to:

§  Understand the value, or perceived added value, offered by new rivals

§  Predict how changes to working practices and the use of impressive technology will affect customer satisfaction and expectations

§  Consider how to minimise the effect of an increasingly competitive marketplace on their own enterprise

§  Review and upgrade their own strategies and procedures

§  Embrace and employ tactics used by emerging brands

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TREND #2: The Brexit impact

The decision to leave the European Union has caused certain times ahead for wholesale distributors:

§  Inflation set to hit prices in 2017

§  Pound falling and rises in global commodity prices impacting the supply chain

§  Transactional changes, such as tax regulations, may come into force when dealing with the EU

§  Decrease in customer confidence and lower intent to buy

§  Ambigious future, with unknown trade negotiations ahead

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Opportunities following Brexit

Brexit may also have a positive impact for wholesale distributors who are equipped to spot and maximise the opportunities available:

§  Exporters already benefitting, with the currency change making it cheaper for international customers to buy from you

§  Likely new trade deals with countries outside of the EU

§  Growth in short term sales for some sectors, such as fashion, as consumers bring purchases forward to beat long term inflation

§  Emphasis on ensuring entire operation is running at optimum efficiency to cope with coming demands

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TREND #3: Customer at the heart

Savvy shoppers have shifting expectations as they buy around the clock and from a variety of devices, and have less loyalty to individual brands. Wholesale distributors need to strive to meet new standards of care and engagement in 2017.

§  Industry focus is moving away from product, and towards customer service

§  Improving customer care encourages brand loyalty in a disruptive landscape

§  Delivering a cohesive customer experience across various platforms is vital for multi-channel sellers

§  Add and upgrade channels for customer service, such as online chat

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TREND #4: AI and emerging tech

Advancements in the development of future tech look set to impact wholesale distribution further in 2017, as enterprises explore or adopt systems such as:

§  Robotics

§  The Internet of Things

§  Check-out less shopping, as seen at Amazon Go

§  Drone and autonomous delivery

The use of these technologies affects warehouse management, inventory handling, order fulfilment, delivery and the retail experience.

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TREND #5: Faster delivery required

The increased pace of trading and digitally enabled consumption means that customers now expect a more immediate delivery experience.

§  Delivery speed now becoming a differentiator for customers when selecting a brand to buy from

§  Time to fulfil orders should now be a key metric for wholesale distributors

§  Workflow efficiencies should be reviewed and improved to make processes quicker

§  New delivery solutions can be explored, such as Click and Collect

§  Technology can be utilised to increase the pace of order processing or delivery speeds.

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Summary

§  2017 will be another year of digital revolution and a rapid increase in pace

§  Customer expectations are changing, and wholesale distributors need to anticipate and ultimately meet these new demands

§  Emerging technology will continue to change and impact the way we work and our view of the shopping experience

§  Brexit will bring economic uncertainty, with both challenges and opportunities for wholesale distributors

§  Emphasis is moving towards customer relationships and providing the best possible standards of service

§  Competition will come from less traditional and unexpected sources

§  Delivery speed should be considered a mission critical metric

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Why BlueBridge One?

§  Most experienced NetSuite integrator operating across the UK and EMEA

§  Award winning NetSuite solutions for multichannel distribution

§  Wealth of organisational knowledge for developing Wholesale Distribution solutions

§  Provide business solutions to 350+ growing and mid-size companies

§  Customer deployments range from 2 to 100+ NetSuite users

§  Committed to delivering value and developing enduring partnerships

§  Rapid deployment to ensure fastest time to recoup ROI

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Full white paper

§  Download the full white paper: The outlook for wholesale distribution in 2017

§  http://www.bluebridgeone.com/s.nl/it.I/id.150/.f

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BlueBridge One www.bluebridgeone.com