E-Commerce in the PHCP-PVF space is an ever-evolving project for wholesaler-distributors. To gain a pulse for buying habits, trends and tips, Chief Editor Natalie Forster sat down with Affiliated Distributors (AD) Vice President, E-Commerce Solutions, Caroline Ernst. In the podcast linked below, Ernst talks e-commerce trends, challenges and more while giving an update on things the buying group is doing to arm members with the tools they need to accelerate digitally.
NF: What pain points are you hearing from your members when it comes to e-commerce lately?
CE: Industrial distributors face several key e-commerce pain points as they try to expand their online presence and capabilities. One of the top challenges we're seeing is managing large product catalogs; maintaining that accurate and up to date product content across all channels, and then, of course, adding new products, updating existing ones, and to be all doing all of that efficiently. Making sure you have the product content quality that's really going to drive conversion on your sites.
When distributors are integrating between their e-commerce platform, their ERP, or a PIM or another back end systems, it can be a challenge, and there are oftentimes many manual processes that slow distributors down.
NF: What things is AD currently doing to help members navigate these challenges?
CE: AD E-Commerce Solutions is helping member owners who participate in our program with the resources to accelerate their digital journey. Our digital success team helps them every step of the way. We offer a 7.5 million skew digital catalog that's been categorized to meet member standards.
NF: On consumer side of things, what trends are you seeing in e-commerce space?
CE: Well, from a buyer's perspective, they expect to have a seamless experience across all channels, whether they're going into a branch or buying online. They expect to be able to find what they're looking for 24/7 online.
From a distributor's perspective, we see distributors aligning across their entire company to act more of like an enterprise to achieve digital transformation. Whether it's the front office or the back office, they're using digital technology to make sure their entire company is working off the same foundation.
One of the interesting things we've seen most recently is a shift from distributors being reactive to proactive in the digital space.
NF: What are some hesitations or misconceptions that some distributors have when it comes to investing in e-commerce?
CE: The largest hesitation I see is around talent — either not having IT internally or not hiring a leader in the digital space. It’s really not necessarily about technology, but about business transformation, so that investment is truly worth it.
E-Commerce trends with AD’s Caroline Ernst
Vice President, E-Commerce Solutions, Caroline Ernst talks e-commerce trends, challenges and more while giving an update on things the Affiliated Distributors (AD) buying group is doing to arm members with the tools they need to accelerate digitally.
Listen to more Supply House Times podcasts.
NF: Tell me about any new, exciting things going on with AD e-commerce solutions.
CE: We are always evolving what began almost nine years ago and has expanded to nine segments across three countries. What we're focused on now is connecting the data supply chain. We are aiming to be the suppliers' source of truth. We are looking to deliver better content and a better content experience.
A couple of ways we do that: We talked about integrating with other systems, that's where we are providing speed and flexibility to interact with the AD member. We offer APIs that can easily be customized. We offer the ability for distributors to query the AD digital catalog.
For those members that are independent distributors that are just getting started on their digital journey, and they might be sitting on the sidelines, we recently launched a program called AD Excel DX to accelerate your digital experience.
It provides a turnkey solution that's fueled by the AD digital catalog and developed in conjunction with having the AD Digital Success Team behind members to do the implementation for them.
No independent distributor is going to be left behind. We have a really exciting roadmap for 2025 as well - we're continuing to develop new products and service offerings.
NF: What tools or data do distributors need to have in place to get started with e-commerce?
CE: First and foremost is key stakeholder alignment and understanding your customer needs. Since this is a business transformation, you have to do it in a way that's going to complement the rest of your business, which requires key stakeholder, support.
After that I would focus on an integrator with a strategic approach that has proven references in your industry. And then, after that, focus on the platform selection —looking for a platform that has lots of data integrations to your ERP, to all the other points of data you may integrate like customer specific pricing, specific product content, and your CRM, all while making sure all of those systems are automated.
NF: So lastly, if you're able to share a member that has a little success story, implementing e-commerce recently.
CN: I'll suggest a couple of AD members that have great websites and digital experiences for others to look at as a benchmark.
Take a look at PACE Supply, Locke Supply, First Supply, Mingledorff’s , Etna Supply , APR Supply, Consolidated Supply: Those are all AD independent distributor companies that we work with that are implementing best practices across the board.