Let’s cut through the noise. AI in sales gets a lot of attention, but B2B distribution is still all about human connections. Trust, expertise, and guidance—those are things no algorithm can replace. That’s why 82% of B2B buyers still prefer human interactions.
But here’s the kicker: even though AI isn’t closing deals, it’s transforming operations for distributors and manufacturers.
The real impact on your P&L is happening behind the scenes—streamlining operations, slashing costs, and driving efficiency straight to your bottom line.
This isn’t just about keeping up. It’s about staying alive. Companies that embrace AI now will leap ahead and see revenue-per-employee skyrocket. And everyone else will get left behind.
Using AI to streamline operations is where the rubber meets the road. Here’s how to get started.
You don’t need to spend $55 million on a fully autonomous fulfillment center like Kroger did, with robots that pick every product and prep it for shipping.
The average distributor isn’t close to that level of automation, but there’s a whole lot that small to mid-size companies can do to streamline operations with AI tech.
For example, a distributor doing $250M in revenue might spend $25M on logistics and $150M on inventory. AI-driven route optimization and autonomous vehicles can slash logistics costs by 20%, while smarter demand forecasting can cut inventory costs by 10%.
That’s tens of millions of dollars straight to the bottom line, and using AI to streamline logistics is just one part of a digital transformation strategy.
Here’s what you can do right now, on a limited budget, to get ahead of your competition.
Optimize and Automate Key Workflows
Manual processes like order entry, invoicing, inventory updates, and managing returns are silent killers. Errors, rework, and communication breakdowns bleed time and money. AI can stop that bleeding.
You can use software to get full visibility on these processes, like a case management platform that integrates with your ERP. That helps you spot bottlenecks and fix broken workflows.
AI-powered software increases efficiency even more. For example, Millcraft Paper uses AI to look through orders sent by email, and then it auto-creates each order. AI places 60% of their orders without using a human order taker.
Use AI-Driven Demand Forecasting
AI can take the guesswork out of forecasting demand and stock levels, combing through data in your ERP and WMS to anticipate your needs with higher accuracy and efficiency. This doesn’t replace the human analyst, but it supercharges their work and frees up their time to think about strategy.
AI-powered demand forecasting can analyze historical sales data, market trends, and even external factors like weather or economic indicators to predict demand with incredible accuracy. This could help you reduce inventory levels by 20-30% without missing a sale.
Implement AI-Powered Route Optimization
AI can optimize delivery routes faster than humans, achieving greater accuracy, reducing travel distances, and reaching 10% to 20% fuel savings on average. That not only saves money—faster delivery means happier customers.
Use AI-Powered Warehouse Management
A WMS that uses AI can help with things like intelligent batch ordering, optimized picking sequences, and real-time inventory tracking. It can also help you spot inefficiencies and cut downtimes.
UPS improved their throughput by 50% by using AI to prioritize orders. You can get similar results, even as a smaller org.
Start Small with Warehouse Robotics
You can start with one or two Autonomous Mobile Robots (AMRs) in targeted areas. These robots use cameras, sensors, and AI to pick and pack. They scan their surroundings to avoid obstacles, like forklifts.
Many vendors let you lease robots, so it’s not a huge investment to start. Pick a couple of high-volume zones to start with, and expand based on your results. UPS reports a 20-30% productivity boost in the areas where they used AMRs.
AI and automation mean doing more with fewer employees and resources, and that’s got a lot of people worried about their jobs.
I understand those fears, which is why I wrote a whole article about the human side of AI and digital transformation.
The bottom line in that post? Train your people. Their jobs will change, but you’ll still need smart employees to operate the machines, analyze the data, and build the strategies that drive your business forward.
Start by identifying roles most likely to be impacted by AI and invest in upskilling those people. The companies that win won’t just adopt AI, they’ll elevate their teams alongside it.
By training your team and helping them adapt, you can future-proof your business and give your best employees the chance to grow with your company.