Smart Lockers: The Distributor’s Edge in a Digital-First Economy

The State of the Distributor Industry: The Need to Digitize

The winds of change are sweeping through the industrial distribution industry. The traditional model — where manufacturers rely on distributors as vital intermediaries to reach customers — has anchored commerce for generations. Yet this bedrock is shifting. Armed with digital platforms and direct-to-consumer channels, manufacturers can now increasingly bypass distributors to forge their own paths to market. This disruption challenges the very architecture of how products flow from the factory floor to the end user.

This blog explores why digital transformation is the secret weapon to owning the customer experience, earning loyalty, and surviving in this new techno-centric economy.

Omnichannel Distribution is the Future

Manufacturers are seeking to own the customer relationship without the need for distributors. Thriving in today’s omnichannel landscape demands reaching customers through their preferred channels at the perfect moment. This isn’t just a “nice-to-have” anymore; it’s necessary to survival. The evidence is clear: 95% of B2B buyers are willing to make purchases without sales interaction, and they navigate through twice as many channels as they did just five years ago — jumping from five touchpoints in 2016 to ten in 2021.¹

The rewards of getting omnichannel right are compelling. Companies that successfully transform their approach can see revenue climb by 5-15% while trimming their cost-to-serve by 3-7%.² But the benefits run deeper than immediate financial gains. Leaders in this space build enduring competitive advantage by harnessing data to decode customer behavior and preferences with unprecedented clarity.

Taking a Page from the D2C Playbook

Direct-to-consumer brands (D2C) not only cut out the go-between by selling a product or service directly to the end consumer but also leverage the power of email marketing, social media influencers, and social media to cement loyalty. Successful native brands, including Native, Dollar Shave, Quip, and Casper, demonstrate the power of owning the customer journey.

Benefits of Embracing Smart Lockers for Fulfillment

Tradespeople and contractors expect to pick up and collect orders at their convenience thanks to their experience with D2C brands and first-rate omnichannel retailers. Parcel Pending by Quadient smart lockers help distributors realize these key benefits:

MORE Products to Support Your Inventory

Designed with distributors in mind, our Oversize Lockers are purpose-built as an automated and convenient fulfillment option for extra-large and oversized goods. They fit up to 90% of in-store products, from sheetrock and large building materials to tools and gardening equipment.

MORE Streamlined Customer Experience

Distributors can fulfill orders 24/7/365, allowing customers to retrieve orders at their convenience — even outside regular business hours. By creating flexibility for customers, distributors can cement customer loyalty.

MORE Customizations to Meet Your Business Needs

Our locker automation platform now connects with Epicor Eclipse, an ERP system widely used by electrical, plumbing, HVAC, and PVF wholesale distributors. This integration allows distributors to automate their in-store pickup processes and offer customers multiple pickup options.

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In an era where digital transformation is reshaping the distribution landscape, smart lockers emerge as a pivotal tool for distributors to stay competitive and relevant. By embracing this technology, distributors offer the convenience and efficiency that modern customers demand, while simultaneously streamlining their operations.

Ready to deliver more for your contractors and customers? Speak to a Parcel Pending representative today to lock in your solution.

Sources:

1. Joseph Griffin, S., Snowball, D., Wong, A. Reinventing the digital customer experience. www.mckinsey.com. December 12, 2023. https://www.mckinsey.com/industries/industrials-and-electronics/our-insights/distribution-blog/reinventing-the-digital-customer-experience
2. Ibid.