Distribution’s Value Props Are Under Attack ⚔️
How SaaS tool providers look to become new tech-enabled distributors through digitally wrapped add-ons
Hi,
With the rise of technology disruptors - tech companies engaging in commerce with a distributor’s customers, the value propositions of distributors are slowly being eroded. This process, which we refer to as "The Great Unbundling," involves the chipping away of distribution’s competitive advantages by tech disruptors partnering with niche tech providers or building internal capabilities. They seek to create a new form of distributor, what I would call the tech-enabled distributor. SaaS tools doing eProcurement and B2B marketplaces are quickly maneuvering to fit into this new mold of a distributor. In this newsletter, we explore 3 key value propositions that are under attack in The Great Unbundling, product data, logistics, and financing/payments.
The good news? Distributors can "tech enable" their value-added services as well - by partnering with tech providers that are here to help distributors.
Alex & the Applico Team
The Great Unbundling of B2B Distribution
“There are two ways to make money. You can bundle, or you can unbundle”
- Jim Barksdale