Futureproofing Your Distribution Business:
Aligning Leadership and Technology

Keeping up with rapid change in the distribution industry is no easy feat. As your business grows and customer demands evolve, you will likely grapple with challenges around expanding into new markets, managing complex supply chains, and defending your bottom line against disruptive competitors.

How can you future-proof your distribution operations?

The answer lies in developing a leadership pipeline and technology infrastructure that are equally forward-facing.

Your company can have the most feature-packed ERP system money can buy, but without leaders who can harness its potential, you are just scratching the surface of its benefits. Conversely, building your leadership dream team and putting them at the helm of an outdated and disconnected system will stifle that potential. It’s about striking the right balance – nurturing digital-era leadership talent in lockstep with modernizing your technology ecosystem.

Identifying Future Leaders for the Digital Era

What defines a future-ready distribution leader?

Deloitte suggests they are part of a team “with the skills that can evolve with the rapid pace of change.” This might include traits such as:

• Digital/tech savviness: The next generation of leaders need more than just tech literacy. They need an innate curiosity about emerging technologies and a willingness to experiment.
• Data-driven decision-making: With data coming in from all corners of your business, leaders must be able to extract insights and allow those insights to drive their actions.
• Change management capabilities: Transformative initiatives like ERP implementations require leaders who inspire teams and skillfully navigate organizational resistance.
• Strategic mindset: Your future leaders should have the business acumen to connect technology investments with long-term growth objectives.

Assessment Methods Tailored for the Digital Age

Identifying these future leaders is easier said than done. Traditional assessments may not give you a full picture of candidates’ potential impact in today’s digital landscape.

It’s time to get creative:

• Use data-driven assessments: Analytical reasoning tests and structured interview questions can help to evaluate candidates’ decision-making ability and comfort with viewing data objectively.
• Explore problem-solving and innovation skills: Discuss case studies to challenge candidates’ innovative thinking and application of digital tools.
• Observe tech proficiency: Discuss the candidate’s knowledge of technology solutions. Experience or even curiosity can give insight into their appetite for experimenting with new technologies.

There are many resources to help you define your candidate testing program, both online and through companies that assist in placement and recruitment.

Upskilling Leaders with the Right Technology Framework

Once you’ve assembled your leadership dream team, the real work begins – empowering them with the tools and skills to drive your distribution business into the future.

Leveraging ERP for Leadership Development

A modern ERP system is the ideal training ground for developing well-rounded leaders. With comprehensive data at their fingertips, your team can:

• Gain greater visibility into your organization’s functioning: Dynamic ERP systems break down organizational silos, allowing leaders to understand cross-functional processes and interdependencies.
• Make data-backed decisions: Strong reporting and analytics capabilities transform an ERP into a virtual leadership training ground for honing data-driven decision-making.
• Enable knowledge continuity: A modern ERP serves as a system of record, ensuring seamless knowledge transfer during leadership turnover.

Building Digital Competencies

An ERP implementation alone won’t magically produce tech-savvy leaders. You’ll need to invest in developing core digital competencies:

• Hands-on ERP training: From basic transactions to advanced reporting and workflow automation, ensure that your leaders can maximize your system’s potential.
• Data literacy – Equip your teams with the analytical skills to transform raw data into actionable insights.
• Exposure to complementary solutions: Familiarize leaders with other critical solutions like CRM (Customer Relationship Management), BI (Business Intelligence), and process automation platforms. Better still, select an ERP that can seamlessly integrate these functionalities.

Fostering an Innovation Culture Aligned with Modern ERP

With the right leadership pipeline and technology infrastructure, you can cultivate an innovative, future-focused mindset across your distribution organization.

Empowering Data-Driven Leadership

Your new ERP system can become a goldmine of insights waiting to be tapped.

Encourage leaders to:

• Expand data access: Provide self-service reporting capabilities that empower teams to explore data independently.
• Experiment, learn, and refine: Encourage a culture of data-driven experimentation, where leaders test hypotheses and refine strategies based on results.
• Recognize data-backed wins: Celebrate and incentivize process improvements and innovations built from effective data analysis.

Measuring Impact and Nurturing Digital Talent

Any leadership development and technology initiative is an ongoing journey, not a one-and-done project.

Regularly assess the results of your efforts:

• Track leadership program metrics: Monitor outcomes like retention, internal promotions, and succession planning effectiveness.
• Measure gains in process optimization: Quantify productivity boosts, cost savings, and customer experience uplifts resulting from your tech-driven process improvements.
• Evaluate innovation outcomes: Review the results of data-driven experiments and pivots – both successes and failures are learning opportunities.

Invest in Continuous Professional Development

• Provide ongoing ERP certification paths and learning opportunities.
• Support obtaining credentials or degrees in data literacy certifications.
• Create mentorship opportunities pairing rising leaders with seasoned leaders to delegate training and ensure unwritten knowledge is passed down.

The Future is What You Make It

Distribution has become increasingly competitive. A powerful and dynamic ERP system coupled with a succession plan pipeline filled with forward-thinking leaders are crucial for your company’s survival. By tightly aligning your leadership development with comprehensive technology modernization, you’ll be well-equipped to capitalize on new opportunities and set your business up for success now and in the years to come.