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Distribution Intelligence Lab

AI for distributors: start with one measurable workflow

Most distributors already hold useful signals in their ERP, WMS, order history and supplier files. We identify the one or two workflows where a measured pilot can reduce working capital, buyer effort or avoidable shipping errors, then build it under your data and brand.

4 minutes · results on screen · no email needed

The challenges we see

Four patterns come up in almost every one of the distributors we work with. If one sounds familiar, that is usually where to start.

Reorder rules lag demand

Symptom

Min/max settings reflect an older catalogue or buying pattern, so slow stock grows while fast movers need expedites.

Supplier changes stay fragmented

Symptom

Price breaks, lead-time changes and fill-rate issues sit across supplier files, POs and receipts, so buyers compare them late.

Slotting ignores order mix

Symptom

The layout reflects where SKUs were first placed, not which lines ship together or how often pickers walk them.

Order exceptions surface late

Symptom

Margin floors, price mismatches and short-ship risks are found during invoicing, dispatch or customer follow-up.

Practical AI uses

Four uses we would consider first. Each one runs on data most teams already have.

Use case 01

SKU and site demand forecast

What it does
Uses order history, stock levels and replenishment settings to produce a forecast and proposed reorder points for one family or site. The buyer approves before orders are released.
Data it needs
18–24 months of order lines, stock positions and replenishment settings.
Time to first value
8–12 weeks

Use case 02

Supplier price and lead-time watch

What it does
Compares supplier prices and quoted lead times with purchase orders, receipts and actual delivery dates, then flags changes for buyer review.
Data it needs
Supplier price files, purchase orders, receipts and delivery dates.
Time to first value
6–10 weeks

Use case 03

Slotting and pick-path suggestions

What it does
Ranks candidate slots and pick sequences from order-line combinations, movement and the current location map. A supervisor reviews changes before the layout is updated.
Data it needs
Order lines, SKU movements and an accurate warehouse location map.
Time to first value
8–12 weeks

Use case 04

Margin and service check before dispatch

What it does
Checks price, margin floor and order quantities before dispatch, then routes exceptions to the right person instead of silently changing the order.
Data it needs
Sales orders, customer price lists, cost and margin rules, invoices and short-ship records.
Time to first value
6–8 weeks

How we implement

Four steps, with a decision point after each. You can stop after any of them and keep what was built.

  1. 01 · 2–3 weeks

    Diagnose

    Review purchasing, warehouse and order flows with the people who run them. Map source fields, decision points and the baseline.

    You get: a ranked use-case list with expected value, payback assumptions and data gaps

  2. 02 · 6–10 weeks

    Pilot

    Run one family, site or exception queue against a baseline agreed before build. Keep a human approval step and record misses.

    You get: a working pilot with a go / no-go report

  3. 03 · 4–8 weeks

    Integrate

    Connect approved outputs to the ERP and WMS, add access controls, monitoring and an audit trail, and train the operating team.

    You get: a production system your team can run under your brand

  4. 04 · Ongoing

    Scale

    Extend the proven workflow to more families or sites, with threshold reviews and a handover plan.

    You get: a rollout playbook your team owns

Expected outcomes

These are estimates, not client results. We confirm or revise each one against your own baseline during the diagnosis.

Estimate 5–15%1 estimated reduction in excess-stock value in the pilot scope
Estimate 5–12%2 estimated shorter pick-path distance in the slotted zone
Estimate 2–4 h3 estimated buyer time saved per week
Estimate 9–18 mo4 estimated payback for the first use case
  1. Estimate from a back-test on the pilot family using at least 12 months of orders and stock positions. Assumes replenishment rules can be changed and supplier service levels remain broadly comparable.
  2. Estimate from before-and-after pick-path analysis. Assumes the location map is accurate, SKUs can be moved, and order volume and staffing are broadly comparable.
  3. Estimate based on time logs during diagnosis and a comparison of manual review steps before and after the pilot. Assumes buyers adopt the proposed workflow and approvals remain within the team.
  4. Estimate using pilot and integration fees divided by expected monthly savings from the selected use case. Assumes savings are realized after rollout; excludes new racking, scanners and major ERP or WMS changes.

Questions owners, operators and distribution managers ask

Something else on your mind? Ask us directly.

Do we need to clean our item master before starting?

Not before the diagnosis. It shows which fields are usable and which need attention. We usually start with the family or site where the data is strongest, then fix only the fields the pilot needs.

Will this work with our current ERP and WMS?

Often, yes. We start with controlled exports or a read-only connection. A live write-back is considered only after the pilot shows value and the approval rules are clear.

Who owns the models and the data?

You do. Models, code and data stay in your environment or your cloud account. We don't reuse your data to train anything for other clients.

How much time does a pilot take from our team?

Plan on about four hours a week from a purchasing, warehouse or operations lead, plus a few hours from IT at the start for access and field definitions. The exact load depends on the data path and use case.

What if the pilot misses its target?

We agree the target and baseline before we start. If the pilot falls short, you get a written explanation of why, and you are not committed to the next phase.

Reviewed by Faruk Karagöl, CTO ·

Find out which use case fits your network

18 questions, about 4 minutes. You see your score and top three gaps before we ask for anything.

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