Distributors must improve their supply chains to combat the "Amazonification" of the B2B space and avoid losing market share to competitors, according to Wade McDaniel, vice president of supply chain solutions, Avnet Inc., Phoenix, AZ, in Better Supply Chain=Improved Profitability.

When companies like Amazon Business can provide customers with a broad selection of products for less, and more quickly, this presents a daunting challenge for distributors.

“Expectations are at a higher level than ever,” he says. Customers, even in the B2B realm, demand immediate notification of order placement, shipment, delivery and any delays that might have occurred throughout the process on top of quick delivery.

And if those expectations are not met, likely because of a kink in the company’s supply chain, the customer will look elsewhere, according to McDaniel.

In order to meet customer expectations, increase market share and improve profitability, distributors must prioritize supply chain capabilities – specifically, by investing in technology and talent.

Read more about creating a better supply chain in Better Supply Chain=Improved Profitability.