The Future is Here: Wholesale Groups Adopt Advances in Tech

Technology continues to emerge as a driving force that shapes industries, transforms business models, and accelerates growth. The wholesale sector is now experiencing a digital upswing through substantial investments made by major wholesale groups. These investments are not merely an adjustment to the digital age; they represent a strategic decision toward leveraging technology for operational efficiency, customer engagement, and market expansion.

Wholesale groups, which act as intermediaries between manufacturers and retailers, have traditionally relied on established supply chain networks and personal relationships to conduct their operations. However, the rapid advancement of technology is challenging conventional norms. Recognizing the need to adapt or risk obsolescence, major wholesale players have injected significant capital into various technological initiatives.

Automation takes center stage

One of the most notable technological trends sweeping through the wholesale sector is integrating data and artificial intelligence (AI). The sheer volume of data generated across supply chains is unmanageable by humans, but using this data has become crucial for making informed business decisions. Wholesale groups are investing in AI-powered analytics tools to gain insights from this data, enabling them to boost inventory management, forecast demand, and tailor offerings to specific customer groups. For instance, companies are using data to project market trends, resulting in reduced waste and more responsive inventory control.

AI and automation have become the new arms race in tech. For example, McCoy’s Building Supply, a retailer with 85 stores in Oklahoma, Texas, and New Mexico, has plans to roll out robots in stores, focusing on automating tasks. A recent article in The Journal Record stated that in-store robots will be used to improve customer service. The plan is to enable stores to detect out-of-stock merchandise and incorrectly priced products more quickly, with more than 95% accuracy expected.

“We continually seek innovative ways to elevate customer service while removing operational obstacles for store associates,” said Waylon Walker, McCoy’s senior vice president for operations and merchandising. “With robots, we can eliminate manual, time-consuming inventory checks and attain real-time data to address customer preferences and buying trends better.”

Wholesaler provider Orgill is also building a new, 800,000-square-foot distribution facility that will incorporate robotics and automation. It will add new distribution technology, including robots and a new goods-to-person picking system, to streamline the order receiving and fulfillment process. Their VP of distribution, Randy Williams, believes adding technology will help create efficiencies for both their team and customers.

Adapting to tech leads to market growth

Orgill, one of the fastest-growing independent hardware distributors, boasts 400 sales professionals and plans to grow their team by 10%. In a recent article in LBM Journal, David Mobley, Orgill's executive vice president of sales, said about the company’s growth, “As our business has grown and the needs of our customers have grown, we definitely recognize the need to grow our sales team, and that’s exactly what we are working to do in the coming months,” said Mobley.

“We really put an emphasis on consultative selling,” Mobley said. “We want our team of sales professionals to serve as an extension of our customers’ businesses—an extra set of eyes and ears to help them find ways to grow and improve their operations.”

Sustainability

In recent years, sustainability has become a key concern across industries. Wholesale groups are using technology to align with this global focus. Companies can fine-tune their procurement and distribution processes by researching their consumption patterns and demand cycles, minimizing waste and energy consumption. Additionally, tech advancements have led to the development of more sustainable packaging materials, reducing the environmental footprint of wholesale ops.

In conclusion, the wholesale sector is evolving through major investments in tech. This evolution is not just about adapting to change; it's about embracing technology as a reason for growth and efficiency. Combining data, AI, and robotics is reshaping every facet of wholesale operations, from procurement to distribution. As wholesale groups continue to invest in technology, they are future-proofing their businesses while also revolutionizing an age-old industry in once unimaginable ways.

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