Wholesale Distribution

Traditionally new IT platforms have been a low priority for this industry which struggles with low margins and an uncertain future, but industry leaders are investing in new technology to become more competitive in the future.

The SAP S/4HANA ERP platform provides the Wholesale Distributor industry with next generation IT capabilities and allows companies to become an Intelligent Enterprise which allows your organization to compete and win in this disruptive industry environment. SAP has issued a 2025 date to stop supporting all legacy SAP ERP capabilities so now is the time to start planning for this implementation.

Industry Issues
While the Wholesale Distribution industry value continues to grow, the number of distributors continues to shrink.  There are three reasons why this industry is being disrupted.
  • M&A activity continues to consolidate the industry with vertical integration creating much stronger competitors.
  • Web catalog companies are entering high volume/margin categories which is commonly referred to as “The Amazon Effect.”
  • Changing demographics and a robust job market is challenging the industry with traditionally older workers making it hard to drive change and recruit the next generation of employees.

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