At ISSA: Future of Distribution as Defined by AI

Contributed by BSM Staff

LAS VEGAS -- Automation will transform the distribution industry, and “warehouses will be centers of radical change,” said the chief marketing officer of BradyPlus, a janitorial products supplier.

Ian L. Gresham told attendees of the ISSA Show North America 2024 that “digitization powered by AI will redefine the customer experience.”

In a session entitled “The Future of Distribution,” he said, “AI truly is a revolution that will put digital tools on steroids. We’ll be able to do more faster and easier. There’s no way to avoid it. It’s happening.”

As distributors continue their work to find and manage customers, hold inventory, transact with customers, pack and deliver products and provide value added services.

He said there are three types of distributors:

  • Digital, citing Amazon as an example and model for “low-relationship” customers.
  • Broadline distributors who offer “everything under the sun.”
  • Specialized distributors who offer more value-added services.

Over the next five to ten years, Gresham said, there will be a continual introduction of new systems, tools, processes and talent as a result, and consolidation of the industry will continue.

“Warehouses will be centers of radical change, innovation, automation and investment.”0

Already, Amazon is fulfilling orders by using robots to bring products to packagers in warehouses, and B2B commerce will look more and more like B2C going forward. Most customer buying experiences are online now. Powered by AI, digitization will continue to redefine the customer experience.

“Supply chain efficiencies and automation will require consolidation to continue,” said Gresham.

Still, there will always be a need for “customer-facing employees,” such as account managers, truck drivers and service technicians who can solve problems, increase productivity, achieve sustainability while keeping facilities clean and healthy.

First, we need to standardize in order to automate. The ‘last-mile’ approach to distribution, will evolve into a “last 100 feet” approach. To do so, product data will have to be improved.

“Where does it go?” he asked. “We have to manage information better. Inventory management is table stakes; data management will determine the future leaders of the industry.”