In a VALVE Magazine article from January of 2018, we discussed the effect that digitization is expected to have on the distribution business. The necessity of adding and adapting to digital technology and warehouse execution systems to meet customer expectations is one challenge. It was the area most distributors recognized would require important investments this year and for the foreseeable future.
However, the biggest disruptor to industrial distribution is what is being called The Amazon Effect. But it isn’t just Amazon that is causing the disruption. There are many other internet competitors, like Alibaba, that are causing concern.