Going digital isn’t just a nice-to-have anymore—it’s a necessity to keep your customers happy. Digitally transforming your foodservice distribution business can feel overwhelming, especially if you’re not familiar with the technology.
Once you've decided to make the leap, the next step is finding and evaluating potential tech partners—And this can be a big challenge. Foodservice distributors: have you thought about how to choose the right e-commerce partner?
Your e-commerce technology partner will be key to your success. So, let’s explore some important factors to consider when selecting the right one.
Is their product right for you?
There are plenty of ordering systems out there, but it’s important to understand the features and benefits of each one to ensure it meets your business needs. While different providers may solve the same problem, their unique features can make a big difference in how well your business adapts and how successful the partnership will be.
Here are some key features and factors your ordering system should have to make your investment worthwhile:
1. ‘Rich’ e-commerce catalog and Amazon-like shopping experience
A rich e-commerce catalog with detailed SKU data and high-quality images offers an Amazon-like shopping experience is essential. This attracts customers, boosts engagement, encourages cross-selling, and reduces cart abandonment, leading to higher satisfaction and increased sales. A basic e-commerce solution with line item descriptions simply won't cut it today.
2. Integration capabilities
An ordering system that integrates seamlessly with your existing software, like inventory management (ERP), CRM, and accounting systems, can streamline operations, reduce manual tasks, and improve reporting. Without this integration, you might face higher error rates and a more cumbersome process.
3. AI-powered e-commerce
Artificial intelligence (AI) is driving the next phase of e-commerce. With AI tools, you can offer personalized product recommendations, optimize pricing, improve delivery times, transcribe text/voicemail orders, and gain valuable insights into customer behavior. AI can even help you prospect new clients! This will help you stay ahead of the competition and save your team valuable selling time.
4. Online invoice payments and streamlined accounting
Your system should make accounting easier by allowing customers to pay invoices online and providing real-time settlements. This will keep your finances organized and efficient. Did you know automated accounts receivables lead to lower leads to fewer invoicing errors, a 32% reduction in DSO, and a reduction in bad debt reserves by 15-25%?
5. Order tracking and real-time truck updates
Order tracking and real-time truck updates are important. They give customers transparency and assurance over their purchases, reducing miscommunication and building trust. This, in turn, improves the overall customer experience and loyalty.
6. Customer service
Great customer service is a must. Look for a partner with a dedicated customer relationship manager and 24/7 support to ensure a strong and responsive business relationship.
7. Get References! Seriously.
Last but not least, the most important. Make sure you do your homework. Ask for a live customer to chat about their experience with the provider or do a blind reference call. Make sure it is legit, and trust your gut. If something seems too good to be true or if you only hit with "yes's," it's probably fake.
Is the cost worth the benefits?
Pricing is a critical factor in this decision. You’ll need to consider subscription fees, setup costs, transaction fees, and any hidden charges. Make sure the system's benefits justify the investment and fit within your budget.
Hidden fees can be especially tricky—they can add up quickly and hurt your profits. Try to stay away from per user fees, they add up fast! They can also disrupt cash flow and damage relationships with vendors. Be sure to review contracts carefully, ask for transparent pricing, and clarify any additional costs to avoid surprises.
Conclusion
The Foodservice industry is built on relationships and technology should only enhance those. Use this as a guide to understand who you are going into business with. Make sure they have a proven track record. Ensure they have all the capabilities you need. At the end of the day, your e-commerce technology partner will be key to your success—one that will set you apart or make you fall behind your competitors.
