In today's fast-paced, technology-driven world, consumers and businesses alike are constantly seeking more efficient and convenient ways to get what they need. This has led to the rise of the one stop shop concept, where everything is available in one place and there is no need to go to multiple sources to find what you need. However, this model can be inefficient and siloed, leading many companies to try and aggregate demand through a SaaS (Software as a Service) model.
One of the major trends we are seeing in the business world is the growth of value-added services that allow marketplaces to unbundle transactions and gain access to inventory absent credit or fulfillment services. This has led to a tipping point where manufacturers are starting to treat the marketplace as a major market participant, connecting product data, pricing, and rebates through the platform.
As these marketplaces continue to grow and gain more traction, larger participants with lower cost of capital and higher levels of efficiency will have the opportunity to dominate regionally, relegating smaller distributors to warehouse capacity. This adoption stems from the "payor" in the system, who ultimately skips over capital inefficient levels of the supply chain to gain cost and timeline efficiencies.
One example of this shift can be seen in the rise of fulfillment services, such as Uber, which are migrating heavily towards an owner-operator environment. This allows for greater efficiency and flexibility in the supply chain, as the marketplaces can connect directly with the individuals providing the services.
Overall, the great unbundling of traditional supply chains is a major disruption in the business world, and one that will continue to shape the way we do business in the future. Companies that are able to adapt and leverage these new marketplaces will have a major advantage in the marketplace, while those that resist change may find themselves left behind.