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Explaining How SAP Creates Value for the Wholesale Distribution Industry

<div id="content"><p tabindex="0">This video will equip you with the knowledge and tools to transform products, services, and IT operations while staying competitive. We will cover key trends shaping the Wholesale Distribution industry and SAP's best-of-suite solutions for the Wholesale Distribution industry value chain.</p><div class="note"><div class="noteTitle"><span class="noteIcon"><img title="Note" src="/icons/note.svg"></span><span class="noteTitleText">Note</span></div><div class="noteBody">SAP employees and official SAP Partners can download <a target="_blank" href="https://dam.sap.com/mac/u/a/m9PZxJe?rc=10&amp;doi=SAP1081582">the slide deck</a>.</div></div><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_eav5f5x4"></div></div><div class="parentsection"><div class="section"><div tabindex="0"><h3>Summary</h3></div><ul style="list-style-type:disc"><li tabindex="0"><strong>Industry Challenges:</strong> Wholesale distributors face rapid business environment changes, struggling to leverage data and improve processes</li><li tabindex="0"><strong>Competitive Pressure:</strong> Threats from large companies and new competitors are forcing distributors to introduce innovative business models and services</li><li tabindex="0"><strong>Technology Solution:</strong> SAP S/4 HANA Cloud offers preconfigured best practice processes to help distributors optimize operations and compete effectively</li><li tabindex="0"><strong>Customer Demands:</strong> Growing expectations for diverse products, delivery options, and supply chain transparency are pushing distributors to evolve</li><li tabindex="0"><strong>Operational Limitations:</strong> Traditional manual processing inhibits growth, with companies struggling to invest in scalable systems due to commoditization</li><li tabindex="0"><strong>Digital Transformation:</strong> Cloud-based solutions can help distributors cut operational complexity, reduce costs, and improve efficiency</li><li tabindex="0"><strong>Strategic Imperative:</strong> Adapt quickly through technological innovation or risk becoming less competitive in a rapidly changing marketplace</li></ul></div></div></div>

SAP Value Creation for the Wholesale Distribution Industry

Introducing the Wholesale Distribution Industry

IWD010_020101.mp4

In today's changing world, wholesale distributors need flexible solutions to meet customer demands and support the business as it grows. Moving to S/4HANA Cloud and following a standardized approach can reduce operational complexity and total IT costs so companies can focus on serving customers. In this session, I will discuss key trends and challenges in the wholesale industry. Additionally, we will go through SAP solutions relevant for our customers, customer win stories, and where you you can find additional information. Understanding these key aspects will help you provide our mid-sized prospects with a solid and compelling proposition on how they can fuel their growth. So let's get started. The wholesale distribution industry is challenged on many levels to deal with the rapid changes they are facing in their business environment. While they sit on a large pile of business data, they are struggling to leverage it to improve their existing business processes or to identify opportunities to introduce new product or service offerings that will create a higher degree of customer stickiness. Traditional distributors that rely largely on human talent and manual transaction processing are operating in a suboptimal way across their entire operation inhibiting their ability to grow. With the SAP S/4HANA Cloud Public Edition, those distributors have a chance to not only catch up to, but more so leapfrog their competitors. by leveraging an ERP system that provides them out of the box with pre -configured best practice processes that are run in a cloud environment. As an example, Ampair, a German metal supplier was able to completely cut out the use of paper in their invoicing process. While Diplomat, an Israeli fast-moving consumer goods distributor has so far merged three additional companies into their S/4HANA cloud environment. Distributors need to be on the lookout for threats from multiple angles. They face pressure, both from large companies moving into the distribution business, and from competitors offering new product and logistics options. This is causing distributors to introduce new business models, services, and solutions that can differentiate them from the competition while trying to optimize existing business operations for a greater degree of efficiency. Struggling to adjust to the existing trends and challenges, distributors are striving to grow profitably. The ongoing commoditization of the product-centric business model limits the budget available to invest into scalable systems, a growing number of regulations, cybersecurity needs, and new growth areas. Customers themselves demand a wider range of products and delivery options, which can also be affected by lack of insights into the supply chain. and employees become frustrated with broken or highly manual processes, but companies struggle to identify areas for improvement.