Whoesale warehouse with many boxes

The wholesale distribution industry in the U.S. is immense, with annual revenues of $6 trillion. Accounting for 28 percent of U.S. GDP, it employs 6 million people. 

Despite its status as a behemoth, this sector is undergoing seismic trends that will affect each of the 300,000 companies under its umbrella.

Emphasis on renewability.

Renewable energy sources such as wind and solar are becoming potential profit sources for wholesale distributors who market related products. 

Consumers’ increasing demands for lower-carbon and sustainable products of all types will make it possible for wholesale distributors to provide their clients with the eco-friendly items that customers are increasingly demanding.

Increased oversight.

Recent attention has focused on inequities in the industry, in which larger companies have an unfair advantage over their smaller counterparts. 

In the year to come, it seems likely that new regulations and policies will be implemented to level the playing field.

Prioritized digitization.

In 2025, there will be a turn-off of the public switched telephone network (PSTN). As a direct result, companies in the wholesale distribution sector will be required to shift from analog solutions to digital systems for vital areas such as security, payment processing, and telecommunications. In order for a smooth transition to take place, each company will need to confer with its payment provider to ensure that all systems can function optimally in the new digital environment.

Increased automation.

Automation is continuing to take over the industry, playing roles in inventory and enterprise resource planning (ERP) systems to personalize interactions with customers, improve processing, and enhance forecasting abilities. 

Moreover, cloud-based systems, the Internet of Things, and data analytics in real-time are revolutionizing the ways that wholesale distributors operate, particularly when it comes to accurate inventory management and prediction. 

This is destined to boost profits while simultaneously increasing efficiency throughout all levels of distribution businesses.

Focus on behind-the-scenes business management tools.

Wholesale distributors do a good deal of their work online, and their customers have come to value websites that are rich with content and easy to navigate. While these front-facing attributes are key in delivering increased sales, distributors are coming to realize that their behind-the-scenes systems are just as crucial. 

Supply chain and inventory management, data analytics, reports generation, and online reputation management software are just a few of the applications that distributors are deploying to bolster the foundations of their companies that customers may never directly experience but which are crucial in creating the best possible buying journey.

Clearly, the wholesale landscape is shifting and morphing in ways that would have been inconceivable even a decade or two ago. 

Emphasis on both technology and sustainability is leading to bolstered levels of fair competition, sustainability, and efficiency that are sure to transform virtually every aspect of wholesale distributors’ business models.

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