Wholesale distribution isn’t immune to the accelerating pace of change today. Technological advances and an increasingly connected, global and digital economy have resulted in change that extends deep into the very foundation of distribution. Instead of operating as completely autonomous and isolated islands with tenuous ties to other supply chain participants, most modern distributors must operate in global networks.
The continued shift to more distributed environments and global trade relationships began decades ago when low-cost country sources made “outsourcing” very appealing. As companies become less vertically integrated to reduce costs and focus more on their core competencies, it has become necessary to develop new ways of doing business with each other within the new network economy.