By Brian Hopkins, Chief Customer Officer, Distribution Strategy Grou

In today’s fast-paced distribution world, companies are trying to understand how to gain an edge through artificial intelligence (AI). While AI may seem daunting, the key for distributors is to start small and start now. Early AI adopters already realize massive advantages over competitors who are hesitant to embrace this transformative technology. It’s inevitable

The Early Adopter Advantage

A recent study revealed early AI adopters in distribution could increase cash flow by a staggering 122%. Those following the leaders may only see a 10% increase, while late adopters face potential cash flow losses of up to 23%. These numbers underscore the urgency for distributors to start AI strategies now to secure a competitive edge.

Start Small, Start Now

Embracing AI doesn’t require enterprise-wide overhauls from day one. An incremental approach through targeted pilot projects allows companies to realize AI’s value with minimal risk. This low-stakes testing demystifies the technology and builds organizational AI capabilities a little bit at a time.

A Practical Roadmap

  • Prioritize High-Impact Areas: Target processes where AI can drive immediate impact, such as sales, customer service, or logistics optimization.
  • Seek AI Partnerships: Collaborate with AI solution providers to deploy advanced capabilities without heavy in-house development.
  • Invest in Upskilling: Implement training initiatives to equip employees with AI literacy and the tools to work with new AI systems.

The Incremental Advantage

Distributors control risks by taking an incremental approach while progressively developing AI capabilities and strategies. Each initiative provides critical learnings to refine subsequent AI rollouts across the organization.

Conclusion

Distributors face a choice – be an AI leader or quickly fall behind.

The time is now to initiate AI adoption, even if starting small. AI is not just a tool for improvement—it is a critical part of futureproofing your business operations and achieving market leadership. The transformative potential of AI in distribution is inevitable. It stands as an external force in shaping the future of our industry. Companies that embrace AI technologies today are setting the groundwork for tomorrow’s success, gaining a competitive edge that will differentiate them.

The evidence is clear: By harnessing AI’s power, you can redefine efficiency, enhance customer satisfaction, and lead your company into a new era of profitability and market leadership.