COVID-19 Crisis: 3 ways distributors are prepping for what is ahead

COVID-19 Crisis: 3 ways distributors are prepping for what is ahead



While the distributors we talk to daily are thankfully not sensing a huge downturn in business yet, many are preparing for what may be coming as we steel ourselves for the full impact of the COVID-19 pandemic.


Here’s what we’re hearing from distributors:


1)  They want to keep existing customer business.


By ensuring customers are spending as little cash as possible on customer-owned inventory, while avoiding stockouts, distributors can remain a trusted advisor through any downturn. A top-50 distributor we spoke with this week said that he expected COVID-19 to have an effect eventually. His company was looking to replace an aging VMI solution with TrackStock Replenish, while acquiring a new value-added service for inventory optimization and automated replenishment with TrackStock Manage. 


2) They want to use downtime to ramp up value-added services so they are poised to succeed when all is normal.


Distributors want to take advantage of any upcoming dip in orders to learn about helping their customers manage inventory better. A prospect of ours said that while they are protecting most employees by having them work from home, operations people are coming in to ship product, and business levels seem to be pretty normal. Over the past several months they've positioned themselves to have a division responsible for implementing and supporting value-added services for customers and are now ready to ramp up TrackStock implementations across their business because their contractors are demanding it. 


3) They want to make sure their own distribution centers are optimized.


No one has money to waste right now. Distributors want to ensure that distribution centers are as lean and optimized as possible. Because TrackStock tracks customer usage data, not just order data like a ERP/WMS system does, TrackStock is unique in its ability to eliminate forecast error and optimize distribution centers.  


Use this time when there may be fewer orders coming in to make your distributorship invaluable by not just selling inventory but giving customers a value-added service that ensures they are not spending more than they have to. TrackStock optimizes inventory, lowers inventory levels by up to 73% and then helps saves cash every year by ensuring lower inventory carrying costs. 


Everyone at eTurns hopes you all will stay safe and healthy in these crazy times. Contact us if we can help with anything.


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