B2B supply chain expert, Dr. Adam J. Fein, has authored a report, Technology In Distribution.  The report is the result of study conducted in the fall of 2008 and provides much insight into the technology spending and plans for distribution companies during 2009.

Identified key findings include:

  • The wholesaler-distributors in our sample spend one to two percent of their annual revenues on hardware and software per year. Almost 40 percent spend more than $250,000 per year, while the largest companies spending more than $1 million annually.
  • Technology spending by distributors will remain solid in 2009. A majority of companies plan to increase spending in 2009. Smaller distributors are investing to catch up to larger companies. Web-ordering will see the greatest increase in usage in 2009.
  • Surprisingly, many distributors lack the ability to track important customer-level performance metrics. Only four out of ten wholesaler-distributors can accurately track Operating Profit by Customer. One-third of wholesaler-distributors that offer fee-based services can’t even track the profitability of their services!
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The report is available for free download on Dr. Fein’s blog, Distribution Trends.

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