Tech Spending by Distributors Set to Boom — Study

Focus on online ordering, CRM, sales force automation, warehouse management, Pembroke finds

Focus on online ordering, CRM, sales force automation, warehouse management, Pembroke finds

Philadelphia — February 3, 2004 — Technology investments by wholesalers and distributors will boom through 2008, according to a new study from technology research firm Pembroke Consulting.

Spending on computer hardware and software by wholesalers and distributors is forecast to exceed $80 billion in 2008, according to the Pembroke report, titled "Facing the Forces of Change: The Road to Opportunity."

The study examined survey responses from more than 1,000 wholesale distribution executives.

According to the findings, over the next four years, wholesale distribution executives plan to expand purchases most quickly in these areas:

  • Online Ordering

  • Customer Relationship Management (CRM)

  • Sales Force Automation

  • Warehouse Management Systems (WMS)
"Last year, wholesalers and distributors spent approximately $53 billion on computer hardware and software, equal to one out of every five dollars spent by U.S. businesses," said Adam Fein, Pembroke's president.

Fein added, "In the coming years, distribution executives will invest in technologies that improve productivity, enhance existing service offerings and meet new demands for customer self-service in B2B supply chains."

Pembroke Consulting conducted the study on behalf of the Distribution Research and Education Foundation. The report, available through the National Association of Wholesaler-Distributors, examines key forces impacting the supply chain.

Philadelphia-based Pembroke advised wholesale distribution, manufacturing and B2B technology companies.

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