Over the past two months, MDM has published several articles on the distribution software industry in its twice-monthly premium content newsletter. The series of articles plus previously unpublished material from interviews with software providers and industry experts is available here.
 
In a survey of MDM Advisor readers, about 24 percent of respondents said they plan to make an investment in technology in the next year, and another 24 percent are currently researching options to upgrade or buy new technology. A good majority of these are looking at CRM or Warehouse Management Systems. Other technologies mentioned by distributors in the survey included e-commerce and e-catalogs, VoiP, electronic billing and upgrades to their core systems.
 
Distributors told MDM that they face many challenges, including finding the right fit for their company, agreeing on a price tag that fits their budgets, finding someone to guide them through the process that actually understands how their company works, and ensuring support and training from the software provider post-purchase. Consolidation of software providers has both constrained and opened options for distributors looking to upgrade or invest in technology. The Internet continues to change the way technology providers and distributors look at their businesses. 
 
Perhaps one of the biggest challenges -due to its cost and the rapid pace of change in the tech world -is keeping up. A generational shift will force many distribution companies to keep pace with technological advancements, lest they miss out on the best and brightest in a young work force.
 
In addition to these factors, the twists and turns in the economy may put a crimp on technology investment on a larger scale -though some providers say that distributors are showing increased interest in software that helps them better manage their costs.
 
Our series of articles looked at all of these issues, including the impact of software provider consolidation on the distribution channel, emerging technologies such as Software as a Service, how the Internet is changing the way distributors do business, the growth of pricing software in the sector and warehouse management trends.
 
The latest article, “State of the Distribution Software Industry, Part 4: The Next Steps for Distributors,” is available here.