[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/02\/10\/2021-wholesale-distribution-trends\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/02\/10\/2021-wholesale-distribution-trends\/","headline":"Wholesale distribution trends: More competition, supply chain disruption","name":"Wholesale distribution trends: More competition, supply chain disruption","description":"After a tumultuous couple years, what trends can wholesale distributors expect now? Watch for continued supply chain disruption, increased competition, and a talent shortage.","datePublished":"2021-02-10","dateModified":"2025-01-30","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/magnus-meier\/#Person","name":"Magnus Meier","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/magnus-meier\/","identifier":435,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/ca8ac235edff638c1242cf56cc89ae037a93316e5bdb967d14aff385594b2b30?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/ca8ac235edff638c1242cf56cc89ae037a93316e5bdb967d14aff385594b2b30?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/02\/FCEE123_Wholesale_StaticHB.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/02\/FCEE123_Wholesale_StaticHB.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/02\/10\/2021-wholesale-distribution-trends\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},"COVID-19 and Business","Future of Supply Chain",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/e-commerce-solution\/supply-chain-e-commerce-solution\/","name":"Supply Chain","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Supply_chain","http:\/\/www.wikidata.org\/entity\/Q1824206"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/trends-commerce\/","name":"Trends","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Fad","http:\/\/www.wikidata.org\/entity\/Q787045"]},"Wholesale","Wholesale Distribution"],"wordCount":1087,"keywords":["2021 Trends","Distributors","Ethical Supply Chain","Trends","Wholesale Distribution Trends"],"articleBody":"As a central link within the economy and supply chain, wholesale distributors act behind the scenes to source and distribute goods to customers around the world. After a tumultuous 2020, what are the 2021 wholesale distribution trends to watch?Throughout the COVID-19 pandemic, distributors have been challenged with unpredictable demand, increased strain on customer relationships, supply chain disruptions, and an intense need to safeguard the workforce.Wholesale distribution trends to watchBased upon recent disruption and market dynamics, the wholesale distribution industry will continue to be reshaped by four major trends:Increased competition and new disruptorsGlobal dynamics impacting supply chainsSocial changes resulting in a talent crunchRegulatory requirements adding complexityLet\u2019s examine these industry trends and how distributors can turn them into core differentiators and growth opportunities.Growing competition and new disruptorsThe wholesale distribution industry is facing increased competition from suppliers, adjacent industry players, and marketplaces.\u00a0These nontraditional competitors are leveraging technology to disintermediate distributors and capitalize on evolving opportunities like the B2B e-commerce market, which is expected to reach US $20.9 trillion by 2027.Today\u2019s B2B customers are driven by convenience and personalization.\u00a0They benefit from having many channels to buy the same products that distributors offer, but with compelling pricing and delivery options.      Best examples of B2B e-commerce: Companies winning the game                B2B buyers have changed. How are companies keeping up? Here are five brands that provide shining examples of B2B e-commerce.      This increased competition is paving the way for business model innovations, challenging distributors to find new revenue sources through value-added services and project management. These services allow distributors to add value with something that can\u2019t be offered by online distributors, supporting customer loyalty and \u201cstickiness.\u201dOne of the biggest 2021 wholesale distribution trends: Global dynamics impacting supply chainsActing as a first responder in the logistics supply chain, wholesale distributors play a pivotal role in the global supply chain.During the pandemic, geographic dependency, regulatory restrictions, and manufacturer slowdowns forced distributors to quickly monitor and respond to sourcing risks while balancing a shift in demand patterns.Chip Kleinheksel, Principal at Deloitte Consulting, says distributors have to be much more in tune around how they plan inventory, how they manage inventory, and how to better forecast understand the demand that’s going to be coming their way.“Because if you think about COVID-19, it went one of two ways for many distributors \u2013 the demand either spiked up, and they got a huge demand that they weren’t all prepared for, or the demand fell. Distributors had to figure out, how do I best manage the inventory I have? How do I find new channels to go sell it?” he says. “Because of this, I believe we will see more focus on the core technology that they create and also leveraging other tools to better forecast and plan around demand.\u201dThe need to anticipate future supply chain disruptions has shifted distributors\u2019 focus on forward and reverse logistics. They\u2019re particularly focused on demand, inventory, and supply planning processes.McKinsey believes that organizations can retain their position in the supply chain amid market disruption by creating supply chain transparency, estimating available inventory, assessing realistic demands, and managing working capital.Social changes lead to a talent shortageIDC found that 35% of knowledge and frontline workers will consider social, environmental, and humanitarian actions as key criteria in employment decisions. With talent putting an increased focus on working for companies with a purpose and a high brand value, distributors and other less-prominent B2B industries are struggling to attract the talent required.      If purpose isn’t a part of your business, your business is at risk                Imagine purpose in business like an unspoken company tagline. It's the setup and the punctuation of every action. It's the marrow of what moves a company.      This new wave of talent is also looking for roles where they can add value to the business and use new technologies to access real-time insights, thereby reducing repetitive tasks.To retain and recruit top talent, distributors should empower employees to focus on high-value tasks by leveraging insights embedded in their operational activities.\u00a0One way to do this is through process mining. This allows distributors to analyze chains of transactions from origin to closure to identify process breaks and highlight manual interactions or deviations from best practices.      Talent management: Creating a people advantage with HXM                Successful talent management focuses on the employee experience. With HXM, businesses can leap ahead by supporting their employees to excel.      Regulatory requirements add complexityIncreasing regulatory requirements are adding complexity for wholesale distributors, specifically in the areas of customer protection, circular economy trends, national mandates, and product traceability.Depending on the varied regulatory requirements within each distribution subsegment, the overwhelming need for trusted products requires distributors to track, trace, and monitor goods along the entire supply chain. This practice often increases the cost of doing business.      Ethical supply chains in 2025: Definition, examples, trends                Consumers expect more from the brands they buy from, and an ethical supply chain is now a requirement. Learn what it means and how to get started.      Proactive distributors can use a digital platform that allows them to adapt to security and regulatory requirements, laying the technology foundation required to meet long-term compliance needs with minimal impact to the bottom line.Accelerating technology evolution in wholesale distributionOne thing is clear from the key 2021 trends – agility is key for success in today\u2019s wholesale distribution industry. With technology playing a crucial role for market leaders, distributors need to make continuous innovation an inherent part of their operating model.To build an innovation-friendly culture, distributors must invest in expert skill sets, while establishing a value and change management practice that supports organizational ambitions.I recently met with Kleinheksel to discuss the top challenges facing distributors today and how to develop an agile business model to innovate upon for years to come.This content is hosted by a third party ( player.simplecast.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowIn this episode, you\u2019ll learn:Insight into four major wholesale distribution industry trendsImpacts of growing competition and new disruptorsHow global supply chain disruption impacts distributors\u2019 ability to deliver on customer expectationsKey societal changes that are creating a competitive talent landscape  Wholesale distributors are staring down a laundry list of demands \u2013 and reduced budgets. Enter embedded AI that can deliver better distribution management + smarter outcomes. SEE HOW. "},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"02","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/02\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"10","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/02\/\/10\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Wholesale distribution trends: More competition, supply chain disruption","item":"https:\/\/www.the-future-of-commerce.com\/2021\/02\/10\/2021-wholesale-distribution-trends\/#breadcrumbitem"}]}]