How Customer Demand Affects the Distribution Industry

Customer demand has become very complex and very challenging. Previously, distributors could base their supply on the basics of simply supplying products and fulfilling a need for certain products but today the landscape is vastly different.

There are many factors that affect the demand for products. It’s no longer just about a need for a certain products but also the ‘how, when and what’ that has an effect.

Some of the factors that affect the demand for products could include online shopping as ease of shopping is crucial, turnaround times for delivery of products are important as customers want their items obtainable in a manner they prefer and they want it quickly, then the big variety of products is another consideration as there are so many options available and they definitely want the options, and last but not least, the customer’s experience is key as today customers want to enjoy the process, feel special and they want to be considered. Even though there are many challenges associated to supply and demand, there are many positive effects it has on this industry:

1. Customer demand encourages better customer service

As customer demand grows, and they require their goods to arrive quickly, distributors are encouraged to build their KPI’s around customer service, and develop better ways of communicating with and managing the expectations of their customers. Customer demand also highlights the need to move away from half-hearted customer relationships, and fully embrace customer-centricity.

2. Customer demand encourages proactivity

Not only does customer demand require a closer focus on better customer service, but it also encourages proactivity from both staff and business leaders. If businesses expect their customers to remain loyal, then they are required to meet them half way and meet their needs in relatable and notable ways. Distributors are encouraged to reach out to their customers frequently to discuss sales performance by product, product feedback, and consumer buying trends.

3. Customer demand encourages distributors to raise the bar

The earlier distributors can meet their customer expectations, the better. One great method to use is by ‘under promising and over delivering’. The moment you ‘under deliver’, that’s the experience your customers will remember. It’s essential you set the bar high from the beginning by showing exceptional service so this will stick with them throughout their loyalty to the distribution business.

One way in which to meet the needs of your customers is to plan ahead and to be as effective and efficient as possible. This could be supported with the help of a good Enterprise Resource Planning (ERP) System. To learn more, click HERE and contact us today to see how we can help your business.