Issue link: https://www.e-digitaleditions.com/i/919877
44 FEDA News & Views OPERATIONS D igitalization of the durable goods supply chain has had an ongoing change effect on existing channel relationships. is is especially true for manufacturer, distributor and dealer markets in the durable goods sector, which is represented by some 48 product/market sectors totaling more than $3 trillion in North American sales. Few traditional channel relationships remain untouched and many established partners are experiencing channel conflict at levels unseen for decades. Especially hard-hit is the distribution sector as manufacturers have turned to alternative channels to protect and grow their downstream base. According to our research at Benfield Consulting, the reasons why they access the omnichannel are many and vary for each manufacturer. Below are a few events that represent recent tipping points. -New channel entrants offer new approaches to the value chain and are taking away sales from traditional distribution. They use technology to improve productivity, thereby reducing cost and giving the customer a better price. A recent MIT study of global online sales found that 17 percent of the firms transact 47 percent of the volume and have been around for less than two decades. In short, new channels are more effective online than traditional brick-and-mortar firms. OMNICHANNEL OPTIONS IN B2B DURABLE GOODS AND HOW THEY'RE AFFECTING THE TRADITIONAL DISTRIBUTOR By Scott Benfield, Scott@benfieldconsulting.com INTENT ON CAPTURING ITS SHARE OF SALES IN THE ONLINE MARKET, MRO DISTRIBUTOR GRAINGER CREATED THE ONLINE PLATFORM ZORO TOOLS TO OFFER CONSUMERS A LOWER-COST ALTERNATIVE.