How technology affect distribution channels?

Technology affects distribution channels in numerous ways. Automated warehouse systems (WMS) reduce inventory requirements, lower distribution costs and improve customer service levels. Business mangagement/ERP systems allow distributors to monitor their overall businesses more closely. PRM software, also called partner portals, improve communications between suppliers and distributors. Social media may help resellers improve their relationships with customers. Data mining will help distributors better match products and services to customers needs. RFID will allow better tracking of products throughout the entire supply chain.