Dynamic Distribution is the new retail landscape in which inventory decisions, sourcing, and payments happen in real time.
People now demand
same day delivery or
pick-up of goods
of retail revenue is
is influenced by digital
of retail inventory is
consistently out of stock
8 in 10
use mobile in-store to
help with shopping
A new retail reality has arrived.
Retail stores haven’t changed much in the last century. They’re still a place where shoppers can go to see what’s in stock and hopefully buy some of it. Yet the consumers who show up in these stores can buy anything they want from the computers right in their pockets. This 24/7 access to goods and data has forced a change in retail, and we call it the New Retail Reality.
Technology is erasing the lines between online shopping and offline, so retail as we know it will be virtually unrecognizable within the decade. To succeed, thriving retailers and brands are transforming into highly agile and responsive technology companies who can manage and deliver inventory in real-time.
They like retail, but they want it right now.
Consumers still want to see, touch, and try products in-person. They like visiting a store and being able to buy something right away. But inventory management has become more difficult. Shipments have to hit store shelves in days, not weeks. Inventory must be closely managed so it’s available to meet demand, but not become a liability when it’s not. If a product isn’t in stock? Shoppers will happily buy it from Amazon instead.
Retail must be reimagined to be dynamic in every way. Those who don’t become dynamic are already being left behind. Huge retailers like RadioShack, Sports Authority, and Brookstone have declared bankruptcy because they haven’t responded.
A shift from linear to Dynamic Distribution.
There is a clear and necessary shift from Linear Distribution to Dynamic Distribution. Since consumers have more buying options, they demand products on shelves, they demand fast delivery, and they want multiple convenient pickup options. Retailers and brands must respond with data-driven purchasing options and flexible logistics to create shorter order-to-shelf times.
Every company now must become a technology company. Some are responding, and are thriving in this new world. Target, Home Depot, and Walmart have successfully turned their stores into fulfillment centers. Nordstroms, Saks, and Barney’s all offer same-day delivery. Consumer shopping habits changed and these retailers responded by adapting to the evolving landscape. Whether they know it or not, these companies have fully embraced Dynamic Distribution.
Dynamic Distribution allows inventory to be added or removed with zero overhead. That means companies can scale supply in nearly real-time to meet demand. Since inventory is the biggest number on their balance sheets, it’s essential for companies to embrace Dynamic Distribution. This smooths the volatility that comes with the new changes in inventory management.
Dynamic systems provide the keys to scale more efficiently, most simply because they eliminate gatekeepers and seek to eliminate inefficiencies. Until recently, brands and retailers were built solely around products. Now the successful ones are built around products and data-driven real-time technologies. When Dynamic-based businesses enter any marketplace, such as traditional retail, Dynamic always wins.
Dynamic Distribution is the inevitable result of a highly connected, fast moving, ever changing consumer environment. The successful companies infinitely scale, manage inventory in real-time, and use real-time data to make decisions. Think of Uber with taxis, Airbnb with hotels, or Eat24 with restaurant delivery. Distribute’s focus is to launch brands and retailers into this new era.
Brands want to react in real-time.
We’ve spent the last two years building tools for brands and retailers to plugin and adapt to Dynamic Distribution. We’ve taken wholesale purchasing from 4 days to 4 seconds, brought key insights and analytics where they previously didn’t exist, and built a scalable network that connects powerful buyers with great brands.
Welcome to Dynamic Distribution. We’re here to help.