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Service Delivery Head - Global Freight Management
Exel
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Home  Wholesale Distribution Distributors among Top 10 outsourcing players
Theme Story Distributors among Top 10 outsourcing players
A large number of Wholesale distributors like Aramark, Sodexho Alliance and Ikon office solutions figured in the list of Outstanding Outsourcing service providers released by The International Association of Outsourcing Professionals (IAOP). The changing revenue mix and widening portfolio of services is redefining the role of distributors like never before.
Wholesale food distributors want to emerge as supply chain specialists managing all the core functions like warehousing, fulfillment, in bound logistics and store design for their customers. Food service distributors offer the broadest spectrum of services ranging from facilities management for big institutional clients to recipe management for independent restaurants. Electronic component distributors play a crucial role in the components supply chain by complementing their line card with other value added services like component selection, materials management, Vendor managed inventory, programming, environmental compliance and design services. Similarly building material suppliers offer project management and pre fabrication support to professional contractors thus playing a key role in areas that were traditionally owned by the construction company.
The success of many distributors in offering these value added services can be attributed to one or more of the following reasons:
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Distributors have the opportunity to leverage traditional strengths in order fulfillment and logistics management to offer a host of supply chain services. |
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Customers are increasingly willing to outsource non core activities to distributors. |
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Distributors are uniquely positioned to know supplier innovation and also understand customer demand providing them with the ability to offer several demand generation, product installation and support services. |
Technology can play a key role in helping distributors to offer several other value added services or scale up these services with greater confidence. Sometimes a distributors IT investment for internal process efficiency/ data accuracy can also enable him to offer a value added service. For example an electronic component distributor’s Product Information management investments also empowers the company to offer component information service as a fee based service to OEMs, contract manufacturers or Electronic Manufacturing Service (EMS) providers. Technology investments can also empower a distribution company to accomplish the following:
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Provide Global Data Synchronization ( GDS ) as a value added service to customers |
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Support VMI schemes serving as the single point of contact and contract compliance for big suppliers |
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Compete with 3 PL players to provide order fulfillment and in bound logistics services |
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