Articles and press releases about wholesale distribution, CRM, and all things WP.
The current economic climate is uncertain, and many experts predict a recession is on the horizon. According to a recent article from Forbes, the pandemic has caused considerable damage to the economy, which has “exacerbated process inefficiencies, communication breakdowns, skill gaps, and a host of other problems that were always present but stayed under the radar.” This in addition to challenges like inflation, geopolitical relations, and labor shortages has created volatility and stress for every industry and distribution businesses are not immune to the effects.
According to an article by the National Association of Wholesale-Distributors (NAW), during the Great Recession of 2008, wholesale distribution sales declined by 21 percent over a 12-month period. Recessions can lead to a decrease in demand, increased competition, and decreased profit margins. However, there are steps that distributors can take to prepare for and soften the impact.
Looking back on how distributors operated during previous recessions can help others anticipate what may lie ahead if forecasts become reality. According to, How distributors can build momentum in a slowdown, during the Great Recession, a small number of distribution companies were able to remain flexible and adapt quickly to changes which led to them gaining market share over their competition.
We’ve compiled techniques that experts recommend for gaining an advantage in a competitive market. Distribution Strategy Group (DSG) recommends that distribution businesses should take steps to manage their finances, including reducing inventory levels and managing cash flow. NAW recommends planning for a reduction in sales, focusing on customer retention, and investing in automation and technology to reduce costs.
By investing in technology and automation solutions, distribution businesses can improve efficiency and reduce costs. According to a study by the DSG, companies that invest in automation and technology are more likely to survive during a recession. When looking to purchase technology, look for those that provide many benefits rather than one solution. For example, implementing WPCRM can help businesses manage customer relationships, improve sales, automate marketing efforts, quoting and BI tools, provide suggested products, and much more. An effective CRM should address challenges and improve efficiencies company-wide.