The pace of advancements in Information and Communication Technology (ICT) has been remarkable.
While web and ecommerce have been integral for decades, the wholesale sector has experienced a substantial uptick in their adoption in recent years.
Digital commerce has developed into a fundamental channel recognised as indispensable in today’s market.
Andy Pratt, Business Transformation Specialist at BCP, comments: “Where ecommerce was once considered revolutionary, the emergence of Artificial Intelligence (AI) and machine learning has elevated the technological landscape to unprecedented levels. Over the past year, these technologies have surged, offering transformative business benefits to the wholesale industry. The opportunities are vast and varied, ranging from improving customer interaction to streamlining and automating business processes.”
The wholesale industry is experiencing a rapid and significant increase in AI and machine learning use. These technologies offer valuable insights and intelligence, enabling informed business decisions. For instance, wholesalers can integrate AI into demand planning to enhance accuracy, and personalised product recommendations powered by AI can help with effective cross-selling to customers. There are numerous potential applications of AI throughout the business, from sales to warehouse operations, which are extensive and promising.
ICT is a vital platform for any business, so the consequences of any disruption, whether in business systems or communications, can be catastrophic. While traditional risks like hardware or power failures persist, newer threats like cyber-attacks targeting organisational systems are rising. It’s essential to ensure robust support for such systems, considering the potential impacts of denial of service and ransomware attacks. Additionally, safeguarding data is paramount, given the increasing instances of data breaches and their associated negative consequences.
“Our flagship wholesale and distribution solution, Accord, and the Accord warehouse management system are receiving significant interest from businesses,” adds Pratt. “These systems are crucial for our clients, providing essential business process improvements and efficiencies. Additionally, our digital products, including the Oporteo ecommerce solution, Connect Digital Commerce platform, and product information management (PIM) systems, are gaining substantial traction. The industry is emphasising enhancing the quality of digital channels, making them a differentiator in service for wholesalers. Wholesalers recognise the importance of having a solid digital presence to focus on customer service, convenience, and self-service reporting. The Oporteo PIM system, which addresses critical product data needs, is witnessing a surge in popularity.”
Henry Dewing, Founder and Director at DueTrade, comments: “The biggest advancements in the wholesale industry within ICT in recent years include the widespread adoption of e-commerce platforms, along with the use of mobile apps, big data analytics, cloud computing and supply chain automation using AI and IoT. Sustainability initiatives have also become a big focus.”
In the wholesale industry, there has been a notable trend towards the increased adoption of AI (Artificial Intelligence) and machine learning technologies. These trends focus on a few areas such as personalised customer experience, where AI is used to analyse customer data and behaviour to allow wholesalers to offer product recommendations.
Demand forecasting involves AI and machine learning algorithms analysing historical sales data, market trends, and other relevant factors to improve demand forecasting accuracy.
AI-powered systems help with real-time inventory management, while machine learning algorithms are used to optimise logistics and shipping operations.
“Wholesalers need to implement a comprehensive approach to ICT security, including: providing ongoing cybersecurity training; identifying and assessing current cybersecurity risks; enforcing clear security policies; and regularly backing up critical data,” adds Dewing.
“Wholesalers should be prepared to adapt their distribution and supply chain strategies to accommodate the increasing demand for online purchasing.”
Most consumers are becoming more conscious of their buying decisions and want to know that the products they purchase are ethically sourced and sustainable for the planet.
Consumers expect a personalised experience, such as product recommendations and personalised experiences.
DueTrade’s Off-The-Shelf product is the firm’s best seller. Wholesalers can now give their customers an ‘Amazon-style’ sales experience through an affordable mobile ordering app platform. It supports those who want a more efficient way of trading with customers, without the hefty price tag associated with developing a bespoke app.
Some customers want more functionality and personalisation than is offered through the Off-The-Shelf product. DueTrade therefore also offers fully bespoke and branded app development services so they can opt-in for this extra functionality when necessary.
“DueTrade is a young company and we are in growth mode at the moment. That said, we are constantly having new and ongoing conversations with wholesalers, breweries, food service companies, etc. The launch of our ‘Off-The-Shelf’ platform has been hugely successful and has already generated interest from a wide range of industries. We therefore expect even more customers to be using our platform in the future,” says Dewing.
“Focus and invest in e-commerce and mobile apps. Think about your sustainability. Invest in your employees. Referrals are always the best form of promotion, but we also promote on LinkedIn, Instagram, Facebook and Twitter, and we have frequent PR pushes into our target industries’ publications, such as the fantastic Wholesale Manager.”
Joel Burnett, Senior Implementation Team Leader at Adventoris, comments: “From our experience with the customers we’ve been working with, over the last couple of years there has been a more forward-thinking approach to diversifying ordering streams and becoming more digitised, however, AI doesn’t seem to be having much uptake at the minute.
“A lot of companies are only just beginning to adopt digital ordering platforms and taking payments digitally, so I don’t think the sector will be adopting AI, in any big way, anytime soon. The main technology focus that we are seeing is on digitising ordering processes.”
About 70 per cent of Adventoris’ customer base is in the wholesale sector, and the company’s best-selling product within that is the SwiftCloud B2B app. It’s the number one B2B app in the UK and the company has had a big focus over the last year on breaking into new markets, which it has done successfully, winning its first North American client, PepsiCo, and a number of European clients including Fellowes, Staedtler and West Design Products.
“Wholesalers are also finding real benefits with our email ordering module. This module facilitates the processing of any orders that come through on procurement systems like Procure Wizard or Reikki, these can then be pulled into SwiftCloud and imported into clients’ app systems,” adds Burnett.
“Many are finding that they’re now getting roughly 15 per cent of their orders through one of these procurement systems, and the email ordering module allows them to be processed and managed all under one roof, without having to separate them or manually enter and type up orders. It’s a huge efficiency driver!”
b2b.store’s CEO and founder, Rob Mannion, comments: “The world of technology is always moving at a rapid pace, so there are advancements coming thick and fast. The biggest areas of interest in recent years have been around AI solutions and there’s no sign of that trend changing any time soon – people are fascinated by the power of AI and we know there’s a pipeline of further innovations on the way.
“The use of automation in technology isn’t anything new, though, although it’s the proliferation of generative AI that is gaining most traction. The idea that machines can learn and develop based on what they discover is potentially transformative and will be informing much of what comes next.”
While the new products tend to grab the headlines, it’s also worth watching out for changes in more traditional technology. WhatsApp adoption by businesses is the big mover in the market, with Meta now working through a conveyor belt of new ideas to help retain and extend the messaging platform’s stranglehold on communications, with the ability to buy and sell within messages, survey and information gather, and new ways to hit an audience. The worst thing anyone can do is just assume they understand the full potential of any technology because everything moves so fast.
“Automation has already been part of the wholesale industry for several years and that is just AI by another name. In such a process-heavy operation, wholesalers have always been looking at ways to streamline processes and run more efficiently, and AI can often provide the answers for that,” adds Mannion.
B2B WhatsApp, the company’s adaptation of the WhatsApp Business Platform, is currently its most popular service. Inspired by Bestway Wholesale launching a 22,000-strong retailer WhatsApp channel with b2b.store’s solution, a host of other large wholesalers and suppliers have been working on their own bespoke approaches to harnessing the power of WhatsApp.
Online-ordering solution B2B eCommerce continues to grow in popularity too and is always developing, with a new loyalty feature set to add even greater functionality to the service.
“It sounds like a cliché, but it’s so important for all businesses to be on a constant path of continuous improvement,” says Mannion. “All trends show that it’s digital where the biggest gains can be made and that’s a space where things are constantly changing, so there’s no time for wholesalers to rest on their laurels. An investment in cutting-edge technology three years ago isn’t going to keep you at the forefront of the latest trends. For wholesalers to fully maximise all sales opportunities, it’s a constant evolution.”
UWS has extended its partnership with TWC and commissioned a suite of additional reports that track online purchasing behaviour on the UWS App and website.
The reports are available to suppliers now via the existing TWC/UWS sales reporting platform. They report how retailers interact with the wholesaler’s ecommerce sites and how brand activation and sales performance compares online versus offline. Currently, rich B2B ecommerce data is extremely limited, and a growing share of UWS’s sales are now made online, which means that it is important that suppliers can access these analytics so that they can accurately plan customised online and offline marketing activity as well as measure the impact of campaigns.
Commenting on the solution, Chris Gallacher, Managing Director at UWS said: “There is plenty of information available in the marketplace on how consumers interact with digital platforms – but B2B insight is far harder to find so we decided to find out ourselves, from our own customers. TWC Group is our data partner for reporting wholesale shipments out of depot so it was natural to ask them to develop an online solution to sit aside our existing data infrastructure. They have done a fantastic job for us, in super quick time.
“We had a load of questions before starting the project. Like, how do our customers use our e-commerce solution? When do they shop with us? What devices do they use? But once we got started, we became even more inquisitive – how is ‘paid-for-media’ influencing spend and purchases, what campaigns are driving greatest click-through rates and so on. Knowing the actual answers to these critical issues was important for us to develop our e-commerce strategy for 2024, in partnership with our suppliers.”
“United Wholesale Scotland has partnered with TWC to develop this market leading web analytics reporting suite so that we can not only monitor retail and wholesale sales but also now understand online sales trends and customer behaviours so that our suppliers can create customised plans for online and offline sales to retailers. This is all part of our approach to be a data-led wholesaler, working closely with TWC on a single source of insight.”
“We are delighted with the quality and depth of insight we are now getting from our customers who order online with us. We are getting a full 360-degree view of our retailers’ views – connecting retailers’ online behaviour with their off-line behaviour has meant we can now get one clear view of a customers’ total purchasing behaviour with us. We think this is pretty groundbreaking in the wholesale industry and are grateful to our data partners, TWC, for delivering this project on time and on budget.”
Tanya Pepin, MD of TWC Group, said: “It is natural that as more wholesale sales move online that web analytics are going to become more important for wholesalers and suppliers. We are delighted to have partnered with Chris and the team at UWS on delivering yet another tech project for one of our loyal wholesaler clients. This project highlights our shared passion for the wholesale channel and mutual desire to see it thrive.
“We always strive for long term partnerships with our clients in line with our values of loyalty and customer-centricity and this partnership is proving to be no different. We know the proposition will continue to evolve – we look forward to supporting Chris and the team to enhance the functionality over time.”
Convenience store group KeyStore is working with retailers across its estate in Scotland and the North of England to promote the benefits of its industry-leading EPOS system.
Many KeyStore owners have adopted the system which offers huge benefits and enables retailers to stay on top of their business wherever they are – in the shop, at home, and also on the move.
For Tony and Rachael Hewson, however, the technology has also helped convict a shoplifter who targeted their KeyStore Middleham store in the Yorkshire Dales.
Tony takes up the story: “On Christmas Eve, I got confirmation that a shoplifter who had targeted my store had been formally charged by the police and now has a criminal record.
“The CCTV and till reports/information supplied played a big part in providing 100% factual evidence and helping get the full conviction.”
Tony, who works closely with the EPOS team at his wholesaler JW Filshill in Glasgow, paid tribute to Richard Morgan and his colleagues for their support, adding: “Richard and the guys work hard in the background – I’m constantly asking Richard to fix little barcode bugs and so on, which helps keep my stock figures as real as possible.
“This means that I have a very well run till/stock system which enabled me to pick up on a few stock figure discrepancies in late October/early November. Once I had confirmation that no picking/delivery/staffing issues had caused the stock figures to be wrong, it was time to trust the till system.
“We reset the stock figures, zoomed the CCTV cameras in on the problem products and did eight-hourly stocktakes on the products. Within 24 hours the tills picked up a discrepancy – I knew the issue was within an eight-hour period so it was just a case of watching those eight hours back to find my shoplifter which I did and I got him.”
Tony said that when he looked back over three weeks of the CCTV footage, he discovered that the shoplifter had targeted KeyStore Middleham nearly every day during that period.
“Luckily, only small value items were taken but it was all adding up and I believe he would have got braver as time went on,” Tony added. “There’s no doubt that our till system played a key role in getting the full conviction and – firstly and most importantly – alerted me to a problem.
“With delivery reports, stock reports, daily timed till receipt reports and sales reports all saved, I was able to prove the amount of goods taken.”
Tony continued: “Filshill’s IT guys do a fantastic job in the background keeping the system running and it’s this hard work that has helped my KeyStore limit the losses.”
Filshill’s Chief Sales and Marketing Officer, Craig Brown, said he was hugely encouraged to hear that KeyStore Middleham had secured a conviction for theft at a time when many retailers are struggling to get the police to take this type of in-store incident seriously.
“Retail theft is very much in the news just now and has been exacerbated by the cost-of-living crisis,” he said. “However, it is gratifying to have proof from one of our customers on the frontline that our cutting-edge technology and EPOS system is doing its job so efficiently and effectively.
“This is a story of our times but one with a favourable ending – and while the main purpose of our technology is to help us work with our customers to identify instantly what is selling in their stores and what is not, tweak planograms accordingly, help them generate profit and increase margins, this security aspect of our EPOS system is also an invaluable tool when used correctly.”
Matt Sherwen, CEO, Sherwen Studios, comments: “For any wholesaling business to succeed, it’s essential to have the right technical foundations in place. Your IT infrastructure is the beating heart of your business; it allows you to communicate directly with your wider supply chain while also aiding easy ordering systems and transactions for customers.”
But to operate effectively, you need to have the right platform in place. One that will allow you to seamlessly scale up your business, one that can easily handle an influx of orders and cope with seasonal demand. But more importantly, you need to invest in an IT platform that allows you to anticipate potential opportunities and use those foundations to provide seamless communications between your customers and your supply chains.
Sherwen Studios has worked directly with wholesale clients, allowing them to maximise their technical infrastructure so they can take advantage of the opportunities open to them. In the company’s experience, there are a few key areas where wholesalers can invest, which will suitably enhance the overall IT experience – internally and externally.
“The key focus should be the implementation of RFID, allowing you to benefit from real-time tracking of shipments and shop floor inventory management. By simplifying the communication between your customers and your supply chain, investing in RFID is a no-brainer. You can integrate the technology into other identifying methods (such as barcodes), giving a real-time tracking inventory that works across different temperatures and differing humidity levels and benefits from an ability to read tags at great distances,” adds Sherwen.
“These RFID tags can be implemented throughout logistics supply chains, allowing you to truly focus on instant tracking of all goods at the touch of a button.”
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