From faster fulfillment processes to reduced labor costs, digitalization affects many elements of the wholesale business. Its implementation has been quite thorough, and those resisting the change may be quickly pushed out of the competition.

Despite this urgency, many wholesalers are unaware of the process involved in digitalization and the returns it yields.

If you’re planning to digitize your wholesale operations without knowing about its impact, you’ve come to the right place. In this guide, we’ll look at the benefits you stand to gain by digitizing your wholesale operations.

But before we get to these crucial benefits, let’s first try and understand what digitalization in wholesale entails.

What Is Digitalization in Wholesale?

Digitalization in business refers to the use of digital technologies to enable automation, improve data quality, and optimize overall operations. These changes are meant to help enterprises improve their efficiency and control over processes while lowering costs.

In wholesale, digitalization refers to bringing transparency in practices, adapting to new customer expectations, and improving operational efficiency. It involves saying goodbye to manual operational processes and digitizing as many elements as possible.

Regardless of where and how it is implemented, the leading cause behind digitalizing operations boils down to fulfilling customer needs and expectations.

Let’s look at the returns your business can yield through the digitalization of wholesale operations.

Benefits of Digitalizing Wholesale Operations

1.Sell Directly to Small or Mid-Sized Retailers and Trade Companies

Most wholesale businesses are restricted by their pool of customers, which includes large enterprises and industrial corporations. Digitalization helps wholesalers remove the middleman and cater to small and mid-sized companies as well.

You can sell to these customers under an existing brand name or use a new company name. This will allow you to create different marketing strategies to effectively target this new group of potential customers.

If your business strengths interest new customers, you can also leverage them by implementing D2C strategies through digital sales channels. You can attract and reach out to new customers directly. Add competitive pricing and offers to the mix, and you’ve got a value-added service that customers cannot say no to.

2.Partner With Manufacturers

With digitalization, wholesalers can undertake and simplify some of the work of the manufacturers.

This is because digitalized wholesalers can accomplish a significant part of the infrastructure required to sell directly to customers. This is enabled through their full-service ecommerce solutions, which can become a sellable service to manufacturers.

It allows wholesalers to partner with manufacturers by offering value-adding services that help everyone boost sales.

3.Optimized Logistics

Some elements of digitalization involve optimizing logistics processes. These include automating pickup, delivery, storage, packaging, and incorporating new approaches to track and trace products as they move through the supply chain.

The purpose of automating logistics-related processes is to implement a highly efficient order reception and fulfillment method that will streamline operations from beginning to end.

4.Boost Customer Satisfaction

Digitalization also allows you to offer a shopping experience similar to B2C or B2B platforms. An example is the GoWholesale marketplace for new and refurbished electronics.

When customers can do a bit of product research before buying products, it makes the process smoother for them. Not to mention, traditional wholesalers do not offer any such feature.

Your customers can also get continuous access to information on products, inventory, delivery, and account status. They can also manage their data, products, and service agreements online conveniently.

You can develop loyalty and ensure long-term revenue by providing high customer satisfaction with your services.

5.Solve Complex Problems

One of the best things digitalization can do for any business is access to detailed analysis and reports on operations.

Through the newly-accessible data, your teams can:

● Gain insight into customer behavior

● Identify trends and anomalies

● Improve supply forecasts

● Spot inefficiencies and bottlenecks in manufacturing or distribution processes

● Identify shipping partners that send items to the wrong locations

● Identify warehouse operators that fail to store goods at the correct temperature

● Minimize discrepancies by keeping records of transactions, inventory, and accounts

● And more.

This data can then help you find sustainable solutions to complex operational problems. You can also explore new business models and, ultimately, new and bigger markets once you thoroughly optimize your current operations.

6.Ease of Payment

In the digital age, friction-free payment methods should be a priority for your wholesale business. This can be implemented easily with the help of digitalized payment processes.

This stage comes very close to the end of a sales funnel and might be the one feature that makes or breaks the cycle.

7.Highly Personalized Customer Experience

Another critical element of digitalization includes incorporating digital commerce platforms. The benefit is that, unlike traditional wholesalers, your business can now offer customers a highly personalized experience.

A unique personalized experience can become a crucial differentiator when you already offer competitive products and pricing. Where customer satisfaction is mandatory, personalized experiences can help you punch above your weight and reel in a doubtful client.

8.Better Communication

Communication is one of the most potent game-changers on this list of benefits. After all, customer service does not end with a sale; it continues to the returns and complaints phase.

High-end customer service and communication are easy through digitalization. Through online portals and chatbots, leveraging your excellent service is no longer a difficult, resource-heavy task for wholesalers.

This completes the last step in the loop of a successful digitalization and sales process.

Things to Remember When Digitalizing Your Wholesale Operations

● Define clear goals and objectives that you intend to achieve through digitalization

● Define key performance indicators (KPIs) to monitor your progress toward these goals

● Focus on customer-centric goals

● Thoroughly test digital solutions before implementing them

● Challenge existing business models and processes

● Create more key positions to delegate digital responsibility

● Implement digitalization on all levels

Wrapping Up

Digitalization puts all your resources to better use, from time and money to labor and accuracy.

The bottom line is digitalizing your wholesale operations can help you improve your efficiency and drive business growth. It enables you to gain a competitive advantage in the industry over traditional wholesalers.

To ensure your business yields the returns well, all you need to do is plan your digital strategy to ensure a smooth and hassle-free transition.