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Top Four Trends in The Distribution Services Industry

Sep 1, 2017

Distribution services are the backbone of every organizational supply chain. The most important part of the supply chain, distribution services, entails a myriad of activities right from picking the product to delivering it to the end-customer. The objective of distribution services providers is to ensure that the product reaches the right person at the right time using the ideal transport networks at the optimum costs. Logistics and supply chain management services warrant a seamless flow and timely delivery of goods and services to the various stakeholders involved in the value chain, comprising vendors, manufacturers, Ask An Analystsuppliers, wholesalers, and end customers. The dynamic and ever-changing market space for distribution services is set to witness unprecedented growth as a result of emerging trends such as new delivery models, advancement in technology, and process automation among others.

Distribution Services Link Producers and Consumers Across Borders

Distribution services providers offer packaging, creative logistics, freight forwarding, warehousing, fulfillment and other value added- services that ensure accessibility and wide availability of goods and services to the end-user. Organizations are increasingly leveraging distribution and logistics services offered by third-party logistics (3PL) and other transportation service providers. The growth in demand for distribution services can be attributed to globalization, burgeoning complexities in supply chain operations, growing e-commerce and retail sectors, the dire need for speedy deliveries, and improving customer experience. Distribution service providers are investing in high end IT infrastructure to minimize costs, fulfill buyers’ requirements, and improve operational efficiency to eliminate process roadblocks and guarantee an efficient supply chain management.

What’s Trending in The Distribution Services Market?

The distribution and logistics services providers are shifting from traditional processes to technology-based technologies, improving warehousing and transportation capabilities and enabling collaborative engagement to drive profitability and operational efficiency. What are the emerging trends in distribution services, you ask? Here’s what.

  • Building mega-distribution centers to achieve economies of scale, optimize delivery schedule, and ensure optimum allocation of human resources
  • Distribution services providers are adopting process automation in place of manual processing to provide real-time visibility, streamline process and material flow, and drive customer satisfaction
  • Integrating advanced technologies such as green practices to reduce paper use, minimize the usage of corrugated packaging, and motions sensors to offer environmentally sustainable services to the customers
  • Rise in omnichannel business models as a result of the sudden surge in online retail and multi-channel fulfillment to include last mile delivery and same day delivery options to cater to different demands of retailers and e-commerce players

 

Distribution and logitsics services providers are expected to witness an upward trend in terms of sales and revenue driven by growing demands of e-commerce companies and the need for flexible, low-cost options that drive cost savings opportunities and ensure efficient supply chain management.

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