Key trends facing distributors in the foreseeable future | Analysts say AI can help protect supply chains | Patterson Cos. posts $75M in Q4 income, $1.72B in sales
Persistently high energy costs, economic uncertainty, inventory challenges and labor shortages will continue to challenge distributors for the next year to 18 months, writes Will Quinn, a director of distribution industry and solution strategy at Infor. Other trends that distributors may see include a greater focus on sustainability advancement, more investment in expanding e-commerce, digital transformation and cloud-based computing, Quinn writes.
Analysts with Morgan Stanley said the use of generative artificial intelligence within supply chains would be able to remove all or most human touchpoints in supply chains. The analysts said the AI, along with machine learning, can predict what could go wrong with fluid transportation networks and help to avoid the disruption entirely.
Patterson Companies reported $75 million in fourth quarter net income on Wednesday, up from $63.9 million a year earlier. Patterson provided upbeat guidance for 2024 after reporting total sales of $1.72 billion, a 5% increase from the $1.64 billion in the year-ago quarter, boosted by $683.5 million in its dental division and $1.03 billion in animal care.
US inflation and a strong employment market were the primary factors that contributed to a 19.6% year-over-year increase in logistics expenses for 2022 to a total $2.3 trillion, according to the "34th Annual Council of Supply Chain Management Professionals State of Logistics Report." Report author and Kearney partner Balika Sonthalia believes logistics operators are in the midst of a "great reset" following COVID-related swings and not a "return to normal," which creates "an opportunity to think through how to become better moving forward."
The lingering effects of supply chain disruption experienced during the pandemic era are continuing to contribute to inflation, according to the Federal Reserve Bank of San Francisco. Absent any additional shocks, inflation driven by supply chains could vanish by early 2024, according to the authors.
Increases in security budgets are not being effectively utilized, according to chief information security officers. Research conducted by risk and cybersecurity solutions provider BSS highlights that although most CISOs are experiencing significant increases in security funding, unrealistic expectations from budget holders result in expenditures focused on attention-grabbing matters rather than strategic, business-centric security defenses.
Generative artificial intelligence likely cut NotCo's recent campaign costs to 10% of normal estimates, Chief Marketing Officer Fernando Machado reports, and Publicis provided a similar estimate for an AI-boosted business pitch. Agencies are also using AI as a springboard for creativity and to save time, despite ongoing concerns about intellectual property and the technology's effect on both jobs and the ad market.
A brand persona sets a company apart from competitors and connects emotionally with clients, writes Kristy Fontelera of marketing agency Elsey Enterprises. Fontelera outlines four steps to develop a persona, from branding basics to a memorable identity.
Becoming a "service leader" by combining old and new management tactics can help you better lead your hybrid or remote workforce by being more proactive in your communication and offering many ways for them to connect and learn new skills, writes Mary E. Ignagni, the program director of the Industrial/Organizational Psychology program at Sacred Heart University in Fairfield, Conn. "Establish a firmer foundation for your leadership by setting up clear two-way expectations for quality, deadlines and communication," Ignagni writes.
