Guest post by Cara Pingel, Director, Distribution and Building Supply at Epicor
Artificial intelligence is moving quickly from experimental innovation to everyday operational value in wholesale distribution. For NetPlus Alliance members who are committed to achieving above market growth and profitability, AI can be a meaningful differentiator. It is helping distributors work smarter, respond faster, and compete more effectively in a landscape where efficiency and customer experience directly influence market share.
Many distributors are still navigating where AI fits into their business and how to deploy it without disrupting ongoing operations. That’s why understanding what your peers are already doing can be so powerful. New research from Modern Distribution Management (MDM) and Epicor highlights 52 practical AI use cases currently active across the distribution value chain. These examples provide a realistic view of how AI is being applied today, what is working, and where the biggest opportunities lie for growth focused organizations like NetPlus members.
AI Adoption in Distribution Is Accelerating
Epicor partnered with MDM to better understand how distributors are adopting AI and where they are seeing value. Among one hundred distribution executives surveyed, 83% said they have implemented AI in at least one business function. That is a significant jump from only 35% in 2023.
Most respondents began their AI journey within the past two years, and nearly all expect to broaden usage in the near future.
The areas gaining the most traction right now include:
- Sales and marketing
- Inventory management
- Pricing optimization
- Customer service
Distributors are using AI to improve forecasting accuracy, personalize customer engagement, streamline repetitive tasks, and support better decision-making across teams.
How Distributors Are Approaching AI Deployment
The study shows that distributors are taking different paths based on resources and risk tolerance.
- 39% combine internal development with support from external providers
- 30% build entirely in-house
- 31% rely more heavily on partners or outsourcing
Notably, 70% of respondents say they depend on external expertise for faster deployment. For NetPlus members managing busy operations and lean internal teams, these partnerships could accelerate ROI and reduce implementation friction.
Lessons from Early Adopters
Companies already using AI at scale shared five insights that consistently drive success.
- Start early with projects that offer quick wins
Tools like chatbots, or automated data entry to help build momentum and internal confidence. -
Invest in change management
Employee adoption and trust in AI systems determine how quickly the benefits appear. -
Collaborate with experienced partners
Working alongside technology providers who understand distribution reduces risk and speeds up progress. -
Pilot before scaling
Small, controlled experiments help teams learn, adjust, and validate impact. -
Assign dedicated internal resources
Clear ownership keeps projects moving and ensures issues are addressed quickly.
These lessons reflect the same principles NetPlus Alliance encourages for strategic growth: strategic decision-making, collaboration, and continuous improvement.
Where AI Is Delivering Real Value
The research organizes AI use cases into six categories. Those highlighted below are most relevant to industrial distributors.
Inbound Logistics
- Accurate inventory forecasting that reduces planning errors and helps avoid stockouts or excess inventory
- AI powered tariff code matching that improves compliance
- Enhanced demand planning that reduces carrying costs while protecting service levels
Operations
- Digital twin warehouse modeling that supports layout optimization and energy efficiency
- Predictive maintenance that reduces downtime and keeps equipment running reliably
- Automated order processing using natural language tools that reduce errors and speed fulfillment
Outbound Logistics
- Route optimization that cuts fuel usage and improves delivery performance
- Dynamic routing that adjusts for real-time conditions
- Automated shipping documentation that reduces delays
Marketing and Sales
This is currently the most active area of AI adoption.
- AI generated sales collateral that frees up rep time
- Personalized outreach that increases engagement
- Sales recommendations that strengthen cross-sell and upsell opportunities
- Dynamic pricing that maximizes margins
- Automated RFP and order responses that speed up selling cycles
Customer Service
- AI chatbots that offer instant support
- Real-time translation that improves communication across customer profiles
- Customer service analytics that identify areas for improvement
- AI-supported account planning that boosts retention and customer value
Infrastructure, HR, Technology, and Procurement
- Real-time cybersecurity threat detection
- Real-time translation that improves communication across customer profiles
- Talent analytics that improve hiring and development
- AI-assisted IT support and software improvements
- Supplier risk analysis and predictive reordering that strengthen procurement strategies
Key Concentration Areas and Emerging Opportunities
Sales, marketing, and customer service dominate today’s AI activity because they produce the fastest financial impact. Logistics and back-office operations have fewer use cases currently in production, which means there is room for innovation and competitive advantage.
Some AI applications, such as forecasting and pricing tools, are ready for immediate deployment. Others, like digital twins or advanced generative prospecting, require stronger data foundations but deliver higher long-term value.
The real differentiator is not how many AI tools a distributor uses but how intentionally they are applied to support business goals.
What This Means for NetPlus Alliance Members
AI is already reshaping distribution, and NetPlus members can uniquely benefit from its practical applications. The organizations seeing the greatest gains are those that:
- Start with proven use cases
- Learn from other distributors
- Partner with experienced technology providers
- Build internal capacity over time
To explore more findings from the research or learn how Epicor supports distributors, visit epicor.com/distribution or contact distributionsexperts@epicor.com.
