VIEWPOINT
10 REASONS FOR A MERCHANT DIGITAL STRATEGY
Ten-25 Software MD Ian Oldrey gives his top 10 reasons why merchants need to adopt a digital strategy.
DIGITAL TRANSFORMATION HAS become an accelerating priority for merchants and suppliers for many reasons. Statistics suggest that, while lockdown may have caused a huge leap in adoption, this was an acceleration of existing trends; and they’re not going away any time soon. The message from technology companies like Ten- 25 and eCommonSense is that merchants must adopt a digital strategy sooner rather than later to avoid becoming obsolete.
1. Customer expectations are changing Digital solutions are becoming a baseline expectation for an increasing proportion of merchants’ customer base. You may have some customers who prefer the traditional way of doing things but with a new generation of digital natives representing a growing proportion of the market, that number is shrinking. Online shopping has become the norm and consumer expectations are rapidly spilling over into the merchanting sector whether you’re talking trade or private customers.
2. Scalable and flexible to allow growth Digital is more agile than traditional processing methods, enabling you to keep pace with change more easily. As your business scales up, digital can keep pace without increasing demand for more admin staff to manage it, and it can do it more accurately and effectively. That doesn’t mean human value is lost – far from it. It simply lets technology bear the brunt of the volume of work, allowing
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your people to add value where people matter most – strategy, relationships, direction, leadership and customer service.
3. Efficient and productive Digital systems help you spot problems and patterns, automate repetitive tasks and set alerts, so it’s easier to find more efficient processes to drive productivity in every department. Stock optimisation is much easier and more manageable with a good digital system, allowing you to deliver perpetual inventory management more easily and unlock hidden value from your stockholding. It can also help with forecasting, credit control and much, much more, reducing the time required for repetitive admin tasks and increasing staff productivity through streamlined process efficiencies and enhanced integration and communication.
4. Accessibility
A cloud system is accessible 24/7 from wherever you are, so you can control your business remotely when you need to without restriction. That means up to date info from sales reps and delivery drivers on the road, easier facilitation of flexible and remote working for your workforce, and being able to access and control your business information from wherever you need to be.
5. Enables processing of large amounts of data. Simply put, digital systems can process more data more quickly and accurately than manual systems. Whether that’s a certification trail for product safety auditing or hundreds
of thousands of product lines, digital is the only practical way to cope with the increasing volume of administration in a growing business.
6. It’s more profitable Yes, digital requires investment, but it can also earn its keep with increased efficiency, improved processes and enhanced productivity. Ecommerce will also usually generate a significantly higher margin than in-branch sales (roughly 40% on average, vs 24% in-branch). Better forecasting can help enhance availability, better stock control can help optimise value and increase turnover across your entire stockholding and inform a more profitable stock profile. The analytical power of a good digital ERP system (like Merchanter) has enormous benefits for your business, both in terms of time and commercial value.
7. Attract and retain talent It’s not just customer expectations that are shifting – a new generation entering the workforce will be looking for forward-thinking employers with modern working practices so if you want to attract the best people, you need to invest in your own infrastructure.
8. Maintain relevance in a changing market. The market is changing with threat from online retailers as well as shifting customer demand and shopping habits. Digital is becoming the norm rapidly and if merchants fall behind, they may not be able to catch up again. You only have to look at the proportion of website traffic on mobile phones to realise that
behaviours are changing fast, and if you’re not being found by the people looking, you won’t be able to compete.
9. Sustainability Zero carbon emission targets are going to be a huge stretch and it’s going to take a lot of commitment across all industries to get there. But digital systems can help drive sustainability in so many ways. From accurate audit and certification trails for responsible sourcing to efficient stock management, reduced travel from more efficient logistics management to enhanced product information (and that’s without even mentioning the reduction in hardware itself), digital systems can massively improve sustainability processes in every business.
10. Future-proofing Sustainability isn’t just an environmental issue. It’s also about ensuring your business is able to survive in an increasingly competitive market. It’s about making sure you’re equipped to have the latest version of ERP system without 6 months of hassle updating it; it’s about ensuring your staff enjoy working for you that little bit more; it’s about ensuring your business has the tools it needs to adapt and thrive as the world evolves. Flexibility and agility are crucial – and that’s where digital systems can really shine. BMJ
Merchants can trial Ten-25’s pioneering digital ERP system Merchanter online, by registering free at
www.ten-25.co.uk.
www.buildersmerchantsjournal.net May 2021
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