For many distribution professionals, a discussion of new technology initiatives might well elicit groans of weariness. After all, the past 20 years have seen a steady increase in solutions for warehousing and distribution productivity, and many companies have invested a significant amount of time and money.

Tech fatigue has set in. Distribution managers are tired of salespeople knocking at the door to sell yet another massive productivity program, and employees are weary of yet another wave of automation.

No one can diminish the positive impact that automation and computerization have had on the distribution industry. However, it's fair to ask whether using technology to create ever-greater productivity gains is the answer to the complex issues facing distributors today. Profits are declining. With low-cost offshore manufacturing increasingly available, product prices are falling, cutting into the margins available to distributors.

Using technology to enable a single-minded search for efficiency and cost-cutting within the four walls of a company is misguided. There is only so much that technology can offer if management is looking only to increase the efficiency of existing operations. Instead, distributors should approach technology as the key to creating valuable new revenue opportunities. Companies can proactively leverage their technology investments and their relationships with experienced IT experts to extend new customer services that increase loyalty and help tap new revenue opportunities.

Distributors can offer services such as custom labeling or light assembly to make their products more valuable to customers, or provide product training or installation support. These services can create additional revenue for a distributor, as they can be passed on to the customer through an offering of fee-based services. With the simple addition of manufacturing, advanced distribution modules or project management software to the existing infrastructure, these services can be administered effectively.

For example, Emergency Medical Products, using an integrated system offered by Microsoft Business Solutions and Maximum Data, was able to more efficiently manage a larger range of products, and increase order accuracy to more than 99 percent. According to Chief Technology Officer Matthew Orr, "Knowing where inventory is, being able to get to that inventory in a logical order, and allowing our pickers to know which product I pick first and which product I pick last makes them more efficient, and so it makes us able to get our product out the door faster."

Offering inventory replenishment for customers—in addition to providing other services such as usage reports and recommendations on inventory optimization—allows distributors to create more value and retain valuable customers for the long term.

Building this new service orientation into an existing distribution business doesn't mean reintroducing tech fatigue. In most environments, creating these services doesn't require tearing out current technology and replacing it with new. Many companies have already made key investments in technology infrastructure and have solid relationships with local vendors, consultants and partners who already know their business.

Leveraging existing technology to proactively create new revenue opportunities doesn't have to exhaust a company or its bank account. Chances are good that companies have already made the investments in technology and expertise to create the kinds of valuable new services that customers are willing to pay for.