The current distribution industry environment is marked by changing business models that require the review of some of the key areas of management. This sector is evolving its value proposition towards a more customer-centric approach by better managing the data available and delivering value on this data through advanced Analytics. In the quest for operational efficiency, companies are undergoing a continuous process of improvement and transformation of their organizational, operational and technological structures that will lead to increased productivity and better use of resources, where Artificial Intelligence will play a key role.
Achieving sector awareness of the need to develop sustainable business models across the ESG spectrum is proving to be a challenge in the transformation process. Moving towards emission reduction commitments (across all scopes of emissions), circular economy-based development, the search for energy efficiency or quantifying the social impact of business models are all relevant concerns on the agenda of senior management, all of this in an increasingly demanding regulatory context.
In addition, changes in consumer habits and customer behavior, who demand better service (based on greater speed, availability and comfort) and the way in which customers interact with new channels as a result of new technologies with the prevalence of mobile devices continue to shape the industry. This makes it necessary to have business and logistic models capable of making the most of the physical distribution model combined with current e-commerce opportunities ("Phygital" business models). All of this is part of a continuous search for capturing efficiencies throughout the shopping journey, which will improve already tight margins (traceability of the logistics chain – loss reduction, digitalization of after-sales management, etc.). The automation of manual tasks and the incorporation of Artificial Intelligence as a mechanism for capturing efficiencies contribute to a reduction in costs over time, not without new risks arising from the adoption of these solutions.
In the current high interest rate environment, and policies aimed at restricting liquidity, financial management of the business is of particular importance to ensure cash needs are covered and working capital is optimized (cash flow plans, reduction of the cash conversion cycle, etc.).
Finally, the current context of marked uncertainty means companies need to reinforce the mechanisms that ensure business continuity by anticipating new events to be governed, and to respond by managing aspects related to organization and human resources, technology, facilities, suppliers and communication processes, with each of these elements being critical in the current context of high competition in the industry.
Our practice
Our catalog of solutions adapts to all types of businesses in the retail field: distribution, textile, food sector, etc. providing innovative solutions to any new challenge that companies face: adaptation of the business strategy, transformation and efficiency including new work approaches, financial management, risk management and control or data capture and exploitation.
