How The Distribution Industry Is Being Reshaped For The Future

Posted by sanchit sawant on February 28th, 2020

Come to think of it, every industry has its foundation on the distribution industry. Ranging from packaging and food service to healthcare and the cleaning industry, distributors ensure that products from one organization reach their target, and ultimately the end customer, in the fastest and most cost-effective manner possible. However, according to market experts, the distribution industry will go through some major transformations over the next decade. What’s more, thanks to the central role played by distributors, many other industries will also be affected. Let’s take a look at some of the ways in which the distribution industry is expected to be reshaped, going forward:

a. New technologies would be introduced to supplement or replace less-skilled human labour. Al Maya Distribution has fast recognized this change and is taking necessary steps in that direction.

b. There will be a growing need for more skilled workers with higher educations to operate advancing technologies

c. Due to short-term and long-term worker shortages, a need to hire temporary workers and freelancers will arise, besides allowing staffers to work remotely

d. Regulatory wage-level changes are bound to come, such as increases in the minimum wage that may increase operating costs

e. Technology taxes, also referred to as “robot taxes”, will be introduced, to cover taxes customarily paid by employers and employees. According to experts, these robot taxes may be designed to fund training programs to retrain workers.

f. The industry will acquire an ability to adjust quickly to extreme weather events, often led to by climate change

g. Products will be delivered through national distribution partnerships and membership organizations rather than having one distributor burdened with the responsibility of delivering all products to its own customers

h. Higher focus will be placed on sustainability in business operations. Al Maya FMCG is also planning to stress on the same.

i. Technology-based shifts will be put in place that will require distributors to change business models quickly

j. The industry will also usher in regulatory shifts impacting the delivery of products across borders

It is interesting to note that some studies have indicated that workers in the distribution industry are more aware of these evolving changes as compared to their employers. This implies that some business owners of distribution companies are holding on to outdated business models that will cease to effective in the near future. Al Maya Trading is certainly an exception, though.