PROS Resources

Margin & Revenue Optimization for Material Distributors

Table of Contents

5 Key Trends in the Materials Distribution and Services Industry  

  1. 70% of B2B distribution customers report that their vendor preferences have changed with the accelerated move to digital channels, post COVID-19. 
  2. 39% of B2B distribution customers expect to make the majority of their purchases digitally post COVID-19. 
  3. Even though 80% of companies believe they deliver “superior experiences,” only 8% of customers agree. 

5 Key Opportunities for Materials Distributors 

Changing customer behavior is accelerating the migration to digital commerce – the omnichannel buying experience is the new battlefield for materials distribution and services companies. To win, materials distributors must focus on these 5 opportunities: 

  1. Optimizing the Omnichannel Experience: COVID-19 and the dynamic market environment has highlighted the need for materials distributors to offer a digital buying experience, with optimized pricing, that ensures immediate wins. 
  2. Improving Margins: With supply chain disruption and increasing costs of raw materials and other inputs, materials distributors must facilitate margin growth at a granular level and dynamically update pricing. 
  3. Gaining Power Over Pricing & Discounting: As competition intensifies, materials distributors must gain efficiency, flexibility, and power over pricing and discounting. 
  4. Maximizing Win Rates: In the materials business, ultra-competitive customers are won through fast and reasonable responses to their inquiries. To do so, salespeople must be armed with pricing guidance and a streamlined quote-to-cash process. 
  5. Streamlining Negotiations & Agreements: Materials distributors must replace legacy processes and systems with new, innovative, scalable solutions, ultimately saving them time and money. Those that don’t do so will get left behind. 

Unfortunately, due to lack of understanding, expertise, and capabilities, many distributors are missing the mark on these opportunities and are already far behind. 

In This Executive Brief, Learn How PROS Enables Materials Distributors to…   

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