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Customer demand

According to McKinsey& Company management consultant report (April 2019) Industrial
distributors should expect a coming shakeout during the coming years. The survey has encompassed
many industrial distributors. .Auto parts, electronics, electrical, general industries, metals, and IT to
mention a few. The report revealed that the economic profit for dollar ratio for industrial
distributors has remained flat since 2012. In all these industries, customer’s demands and
expectations are rising. Customers now demand transparent and omnichannel experience in the
buying process. They demand full visibility into the distributors inventory. They need customized
reporting and multichannel ordering.57% of the surveyed customers mentioned that omnichannel
convenience is one of the top improvements that distributors should provide.90% of the surveyed
customers, research the internet before making their purchase decisions and so the bargaining
powers of buyers are increasing. As reported also, customers demand many features including “24/7
customer service, a complete e-commerce website, order tracking, and real-time inventory
management”. Customers now need technology to enable them in the buying process. They don’t
need to talk to the sales representative to get the information they need to take their decisions
regarding buying. The results of the study showed that customers “expect to make 30 percent more
of their purchases from distributors via online means; those in the electrical segment expect a 50
percent increase”.

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