“Ensure there is domain ownership within each function, with clear KPIs to measure and report progress on performance. Realign KPIs to reflect the additional horsepower that AI brings to the business and be transparent on how this will be tracked and reported.”
— Alberto Oca Partner McKinsey & Company
maintenance from reactive to predictive is a powerful way to not only minimize maintenance costs and downtime but also ensure peak day-to-day performance. As a proof of concept, in 2025, DHL conducted a
test of portable predictive maintenance tools with AI. What the company called a “doctor in a box” was a package with advanced sensors and cameras inside. The package was placed on the belt so its sensors could detect vibration, orientation, sound, distance, and light levels as it moved through the sorting system, while simultaneously recording video and audio for analysis. Though it provided early indications rather than outright diagnostics, it quickly proved useful in identifying issues that would otherwise go unnoticed, such as critical vibration, unnecessary strain on packages and equipment, and damage risks at higher sorting speeds.
9. Maximize ERP and WMS Systems Beyond operational planning and execution, AI is also
beginning to reshape the core systems distributors rely on to run their businesses. “You’re seeing enterprise resource planning (ERP)
and warehouse management system (WMS) providers embedding AI and machine learning into their systems,” Quinn said. “Some generative AI applications within an ERP are answering questions like ‘How do I do [blank]?’ or ‘How do I create a purchase order?’ So, it’s creating a better help function for an ERP, which can be extremely difficult to figure out. But if you’ve got it hooked up to
14 FEDA News & Views
an LLM (large language model) that can research that and give very step-by-step directions.” Integrating AI into a WMS, meanwhile, unlocks optimization opportunities such as dynamically rerouting picking paths based on congestion and order priority, or updating wave plans automatically as carrier cutoffs approach.
10. Assess Results Candidly evaluating the impact of any data or AI initiative
is crucial to long-term success. When distributors achieve their targeted results, they can build on it by asking how to take it to the next level. “Ensure there is domain ownership within each function, with clear KPIs to measure and report progress on performance,” Oca advised. “Realign KPIs to reflect the additional horsepower that AI brings to the business and be transparent about how this will be tracked and reported.” If results are lackluster, it’s an opportunity to learn and
pivot. “You’re going to fail, but you want to start,” Quinn said. “The first time you tied your shoes, you weren’t very good at it. But you got good.”
What Lies Ahead With so many novel opportunities in such a rapidly
evolving landscape, determining if and where to invest can be daunting. Quinn recommended the Applied AI for Distributors conference — held June 23-25 at the Marriott Chicago O’Hare by Distribution Strategy Group — as a great place to start. Dedicated to real-world AI execution in wholesale distribution, the conference aims to connect attendees with technology providers whose platforms are already operating inside distributor environments while also offering workshops and early-access sessions. The Tech Talks portion of the 2026 FEDA Annual Executive Leadership Conference, Sept. 15-18 in Park City, Utah, is another place where distributors can learn more about how these kinds of technologies are being applied to real- world scenarios. AI adoption is quickly shifting from experimentation
to operational necessity. Distributors can now find a technological solution to help uncover and manage nearly any key performance indicator they can think of, from B2B returns to predictive maintenance. Still, Quinn offered a word of caution for those considering investing in AI solutions. “The biggest thing is to not chase shiny toys. Any tool you employ has to fit your strategy as a business. You don’t want your business to fit the technology; you want the technology to fit your business.”
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