Emerging Trends in Distribution Paper Session 3

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University of Phoenix *

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400

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Marketing

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Apr 3, 2024

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docx

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7

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Emerging Trends in Distribution- AI Colorado Christian University MKT-400- Retail- Multi Channels and SUP Professor: Linda Rothwell March 10th, 2024        
  Emerging Trends in Distribution- AI When companies create, price, and promote products and services that deliver value, they must also decide when and how their consumers can access, and purchase their products. All market goods and services require a marketing or distribution channel to reach their customers somehow. Distribution describes how a company makes its market offering accessible for purchase. (Gomez, M., Green, M., Hoffman, L., et al. , 2023). The distribution industry hasn’t always been as fast as other parts of marketing to explore new trends, even though it has been around for quite some time. But in recent years with technology evolving at the speed of wildfire the distributing trends have started to transform. The way we transport and deliver goods is innovative and getting more efficient every day. Technology itself is a powerful tool for the industry but for the distribution industry it can change everything, Artificial intelligence can analyze data and analytics that could be extremely beneficial.  The Drive for Change With everything being readily available for pick up in an hour, or at your doorstep within two hours. Companies are having to adapt and evolve. The drive for this change is customer demand. The demand to have products readily available. Another reason for AI demand is data customer satisfaction and efficiency. Other reasons distributors are utilizing AI are to optimize routes, predict maintenance, inventory management, fraud detection upselling, and sales recommendations, and of course as mentioned previously customer service.
Current developments Addressing AI need Over the years the increase and the demand for AI in logistics and supply chains has grown tremendously. Many companies are looking to improve their decision processes, improve their daily operations, reduce costs, really focus and listen to their customers, and improve their satisfaction. In today’s society Amazon and the complexity of supply chain companies are relying on AI for real-time visibility. “. AI-powered systems provide this level of visibility by integrating data from various sources, such as suppliers, manufacturers, logistics providers, and retailers. “(Reddy, 2024). AI is helping businesses maximize the value of all of the data provided, business can learn from AI-collected data, to produce quicker and more effective outputs. When distributors use AI data, they are essentially improving planning, AI can assist with predicting demand, and logistics that can be then matched with customer supply.  Distributors are relying on AI to analyze data on sales, companies are investing in AI to advance their analytics platform that leverages machine learning and predictive and analytics to extract actionable insights, like the optimization of overall distribution processes. The need for AI has also increased when it comes to inventory an AI tool can used to monitor transport costs and supplier charges, it can find the most cost-effective ways to buy, deliver, and distribute goods to and from the distributor's warehouse. It can provide buyers with date updates of their routing, and faster services for customers which in return can contribute to their loyalty long term. Another reason there is demand for AI is that fraud is growing, as internet cyber-attacks, data breaches, and hacks. “AI can identify data patterns indicating fraudulent activity, such as suspicious purchases and fraudulent returns”. (Quinn, 2023)
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