Few topics in today's world elicit a spectrum as broad as artificial intelligence. This spectrum ranges from basic predictive text like in typing or text messaging, all the way to a full cataclysmic global terror like that illustrated in "The Terminator" movies. One thing we know for sure is that Arnold Schwarzenegger is not on the immediate horizon wearing sunglasses and muttering phrases like "I'll be back."
However, this does not diminish the potential of AI to bring productive and powerful tools to the forefront of business at any level—particularly the world of independent distribution. The elements a warehouse has to navigate can be overwhelming and range from planning, operations, sales and marketing, accounting, and many more. As AI continues to develop at warp speed, opportunities have emerged to enhance each one of these elements and make them all more efficient.
Predictive Technology Integration
Distributors and their supplier channel partners have worked together for many years to integrate predictive technology for things like inventory. Utilization of readily available industry data like the vehicle car parc in terms of vehicle year/make/model, down to the ZIP code level, has enabled both suppliers and distributors to remain well prepared.
Understanding that there are more domestic vehicles across the Midwest than there are in California or Florida does not require a supercomputer. But using historical data to understand common failures within every vehicle over the last several decades, combined with the vehicle demographics across the country, can help a distributor model their inventory in a way to better serve their customers.
Real-Time Sales Support
Beyond just that one aspect of the planning side, new tools are in continuous development for professionals in sales and marketing. Imagine a world where a distributor's inside or outside sales managers have answers to customer questions in real time. No need to do any research, perform any searches; the answer automatically appears during the conversation. No need to imagine, the future is already here.
AI providers have already tapped into this opportunity. By incorporating past purchasing behaviors of shop owners, along with failure data that is both available within the industry and native to the supplier and distributor, any answer is readily available. The AI platform will listen to the conversation either on a call or in person, and understand what is being asked, and in real time deliver the answer, whether it is about the parts on hand, or even what is needed or may be missing from an individual repair. This immediately raises the value of each customer interaction, while not eliminating the need for human beings to interact within the repair process ... It just makes them work more efficiently.
Operational Advancements
Beyond that is the operational side of the industry. Advancements made in every aspect, from warehouse management to logistics and shipping, help to make sure that distributors are getting the right part to the right place at the right time faster and more accurately than ever before. These AI platforms can work with existing warehouse management systems, or they are completely self-contained with the technology embedded in them to already incorporate the intersection of data and technology. Everything from the way inventory is stored in the warehouse, to the methods in which it is pulled and packed for order fulfillment, down to how it is shipped, whether it is a last-mile delivery or the filling of a more substantive stock order through a truck or LTL freight provider.
Learning from Retail Giants
Companies like Amazon have made these types of practices commonplace. Utilizing things like "customers also purchased," "you may also need," or even ratings deployment has made shopping much more convenient for the average person, so why would these not be relevant for the aftermarket? They definitely are, and they are proving invaluable in the distributor's search for expanding the basket. If a customer is buying these particular products, having an AI interface makes sure they know that they will also need these other products (or even tools needed for installation), expanding that basket in a convenient way.
A Century of Adaptation
Since the birth of the independent aftermarket over a century ago, we have proved our ability to adapt to changes or evolve to take advantage of opportunities. The same way that distribution has changed with the emergence of e-commerce, there could also be a cautionary tale in the quest to implement AI at the many different levels.
Forty years ago, few could have predicted the rise of retailers like Walmart overhauling product procurement and streamlining logistics to redefine shopping across North America. Thirty years ago, few could have predicted that Amazon would become one of the largest companies in the world, redefining how consumers research and source products. Twenty years ago, the idea that drones would someday be used to deliver consumer goods to people across cities and towns, redefining last-mile delivery, was pure science fiction. But is it now?
The Innovation Imperative
Technology has redefined our way of life, and will continue to do so. Our industry has a legacy of innovation, most often led by independent distributors working alongside their channel partners to explore solutions. This must continue, or else somewhere, there could be people and companies not even in our industry exploring new technology that would disrupt the very way we operate. The aftermarket is filled with brilliant minds that specialize in problem-solving, and I fully expect these brilliant minds to identify opportunities and keep this industry on the cutting edge of progress.
