How can AI help with labour shortage in B2B wholesale and manufacturing?
The importance of predictive sales software to address the skills shortage in Germany’s specialist wholesale sector.
The shortage of skilled workers in Germany has reached alarming proportions and is particularly affecting the specialist wholesale trade. Sales managers and directors of specialist wholesalers in Germany are under great pressure as they face an acute shortage of skilled workers.
This article explains the importance of using predictive sales software to identify the products with the highest likelihood of purchase per customer, to find the optimal final price for each customer, and to achieve customer loyalty before customers are lost. The following facts have been verified and confirmed.
Shortage of skilled workers in wholesale and distribution
The shortage of skilled workers in the wholesale sector has become a serious problem that is increasingly weighing on the industry. Compared to other companies that rate their situation as poor, 36 per cent of wholesale companies in Germany complain about a lack of skilled workers.
This figure is significantly higher than in other sectors of the economy. The situation is set to worsen as the population ages. Germany will already have a shortage of almost half a million skilled workers in 2019, and the shortage is expected to rise to 7 million by 2035. This is equivalent to the populations of Berlin, Munich and Hamburg combined.
To address these challenges and increase sales efficiency, the use of predictive sales software is critical. This software uses advanced AI algorithms to analyse customers’ buying behaviour and make predictions about their most likely buying preferences. Using data on past purchases, preferences and demographic information, this software enables sales managers and business leaders to identify the right products for each customer and provide them with personalised offers.
In addition to predicting buying behaviour, predictive sales software can also help determine the optimal final price for each customer. By analysing market trends, the competitive environment and customer preferences, the software can adjust prices to ensure that they are competitive while generating a reasonable profit for the company.
The need to implement predictive sales software is more urgent than ever. The wholesale skills shortage is already having a significant impact on productivity, customer satisfaction and employee motivation. By embracing this innovative technology, companies can streamline their sales processes, increase productivity and improve customer satisfaction. It is important that sales managers and directors recognise that investing in predictive sales software is an essential step in addressing the challenges of the skills shortage and strengthening the business for the future.
Causes of the shortage of skilled workers
There are many reasons for the skills shortage. One key factor is demographic change. By 2025, many employees in the wholesale trade will have reached retirement age, leading to a significant gap in the workforce. Recruiting and training new skilled workers is proving difficult, and the problem is not only affecting German wholesalers, but is also a global phenomenon in other developed countries.
Specialist wholesaling is suffering from record levels of job vacancies. This raises questions about the attractiveness of these jobs and the impact of skills shortages on employees. Wholesale employment varies between sectors. However, in all sectors, workers are constantly on the move.
Furthermore, turnover figures in wholesale trade are very important for analysing the economic situation. An analysis of real turnover figures by selected economic sectors up to 2022 shows that the ICT sector and the sector ‘Other machinery, equipment and technology’ had a very good year. It is important to note that the real turnover figures also take inflation into account, so that a meaningful comparison can be made. Here, our employees may already be suffering from a much higher burden.
The role of AI-based Predictive Sales Software
The impact of the wholesale skills shortage is clear and has far-reaching consequences. Two main points stand out:
Firstly, there is a constant need for new staff to meet demand. However, this is becoming increasingly difficult as it becomes harder to find skilled workers.
Second, the inability to recruit enough people leads to dissatisfaction within the company. Existing staff are being asked to do more and more, leading to overwork and stress. This affects their performance and efficiency, especially in managing fast-paced workflows and learning new tasks.
In the face of this acute skills shortage, it is essential that specialist wholesalers in Germany rely on predictive sales software. This software uses artificial intelligence and advanced algorithms to identify the products most likely to be purchased by each customer. It enables sales managers and general managers to find the optimal end price for each customer and build customer loyalty before they leave. It also reduces the workload of today’s employees.
The shortage of skilled workers is also affecting customer satisfaction. Customers expect quick and accurate answers to their questions, want their orders processed correctly and are interested in new products and innovations. When companies are unable to meet these demands due to staff shortages, customers become frustrated and dissatisfied. This, in turn, can cause customers to turn away and possibly go to the competition.
AI in B2B wholesale and manufacturing. AI as an answer to the skills shortage? Conclusion.
The situation demands immediate action. The use of predictive sales software offers an effective solution to mitigate the impact of the skills shortage in the wholesale distribution industry. By targeting customers with personalised offers and anticipating their needs, companies can increase sales and strengthen their competitiveness.
The skills shortage in Germany’s specialist wholesale sector calls for innovative solutions. The use of predictive sales software enables companies to optimise their sales strategies by identifying the products most likely to be purchased by each customer and determining the optimal final price. Predictive sales software offers a way to strengthen customer loyalty and prevent customer churn.
With the worsening skills shortage, it is essential that specialist wholesalers in Germany start implementing predictive sales software now to ensure their long-term competitiveness.