Almost concurrently, I read about AVDA’s survey of veterinary distributors and a supply chain report on Amazon as a competitor, yet partner. The move to online is apparent in both articles and signals how much distributors are at the front line of a changing economy. Direct-to-consumer sales threaten their business models, which previously relied on shipping large amounts of inventory to brick-and-mortar locations for resale or use.
Source: Vet Advantage, June 2017, page 44.
Decision makers spent most of their dollars online with distributors in the past 12 months. Distributor reps are seen more frequently and considered more aligned with the practice’s needs.
See also: Supply Chain Dive, July 19.
While emerging technologies were the top concern for most respondents, Amazon’s role in the wholesale distribution chain was prominent. 92% of respondents said they considered the e-commerce giant a competitor, although 64% also consider Amazon as a “partner.”
INSIGHTS: It is apparent that the distributor sales representative of tomorrow will provide a much different set of services to customers within and at the end of the supply chain. Our industry MUST focus on using our home delivery and direct-to-consumer sales options to maintain the flow of veterinary products through regulated supply chains where oversight and proper stewardship of products can be maintained and supported.