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Dec 2016 - Business Strategy - Doc # US41952516

Business Strategy: Wholesale Distribution 2016–2017 Investment Guide

By: John Santagate, Simon EllisProgram Vice President

Abstract

This IDC Manufacturing Insights report presents IT budget benchmark data and priorities for the wholesale distribution industry. The role of wholesale distribution is changing. IDC believes that wholesale distributors are essentially at a crossroad, where they must either evolve or risk being marginalized. It is no longer enough for the industry to serve as strictly a low-margin pass-through between manufacturing and retail. To achieve this evolution, wholesale distributors must embrace IT and business process modernization to serve a greater role for their customers that are increasingly looking for partners to take on noncore pieces of their business.

"Although generally optimistic about the future, wholesalers must combine new services and offerings with more aggressive investment in technology. To truly capitalize on the benefit potential, the commitment and investment must be consistent rather than taking the approach of investing one year and neglecting to nurture and grow investments subsequently," says Simon Ellis, VP at IDC Manufacturing Insights. John Santagate, research manager at IDC Manufacturing Insights adds: "Digital transformation must be an area of focus for wholesalers that are serious about providing the value-added services their customers are looking for now and into the future. Wholesalers should be strategizing and investing in modern digital technology to drive business process improvements and speed into their operations."


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