Longer supplier lead times and higher freight costs could force distributors to hold more inventory while adjusting pricing more frequently to protect margins.
The introduction of artificial intelligence (AI) into the criminal toolkit has not simply made attacks faster. It has restructured who can launch them, at what cost and at what scale.
For distributors, the shift is expected to increase the importance of inventory management, supply chain visibility and value-added services as customers navigate a more constrained and complex sourcing environment.
Ingram Micro said AI is now managing a growing share of customer transactions and sales activity. In the first quarter, the company’s email to order system processed about 230,000 customer emails represented more than $1 billion in sales, while reducing the need for manual order entry.
Company officials said the expansion is intended to strengthen service levels in the northern portion of its territory by reducing transit times and aligning inventory more closely with local demand.
For wholesale distributors, the move changes Amazon’s role in the supply chain. The company is now operating as a third-party logistics provider while also extending its network upstream into manufacturing hubs.
The Wayne, Pennsylvania-based cooperative said member purchases from AD suppliers increased 28% during the quarter. The U.S. electrical and U.S. pipe, valves and fittings divisions led performance, each posting 13% growth.
For distributors, the impact is immediate. Many relied on First Brands as a sole source across multiple categories.
The specialty distributor said revenue rose 3.8% to $496.0 million for the quarter ended March 31, from $478.0 million a year earlier.
The ISM Manufacturing PMI registered 52.7% in April, unchanged from March and above the 50% level that indicates expansion. The reading suggests the broader economy continued to grow, extending an 18-month expansion streak.