Wholesale Distribution Trends in Technology

Wholesale Distribution Trends in Technology cover

New Tech Adoption Driven by Supply Chain Constraints

Traditionally, the wholesale distribution industry has been slow to adopt new and changing technology compared to direct-to-consumer, retail and third-party logistics companies. Within the four walls of a wholesale distribution warehouse, we’d typically see lots of old “green screen” technology in use.

Prior to the COVID-19 pandemic, distributors were slowly adopting newer technologies. However, years later wholesalers are experiencing increased competition from their own customer base. Manufacturers driven by major constraints in the supply chain during COVID-19 moved quickly toward selling direct-to-consumer (D2C) via digital platforms, greatly reducing the need for traditional distribution.

To combat increased competition and become better equipped to handle constraints such as labor shortages and supply chain disruptions, distributors have recognized that technology is one piece of the puzzle. Some of the specific technology trends include:

  • Software as a Service (SaaS)
  • Updated Warehouse Management Systems (WMS)
  • Automation

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