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Industry Perspective

The AI Gap in Distribution Isn’t About Size

DSG’s AI Top 25 looks like a leaderboard for the giants. Read it closely and it’s a playbook any independent can run.

By Unilog

The Number Under the Ranking

When Distribution Strategy Group (DSG) published its AI Top 25 this year, the headline read like a story about the biggest names in distribution. The top tier is six multibillion-dollar companies: ADI Global Distribution, Fastenal, Ingram Micro, Sonepar, W.W. Grainger, and Wesco International. If you run an independent distributorship, the easy conclusion is that AI is a game for companies with budgets and data-science teams you will never have.

That is the wrong takeaway. The more useful number in DSG’s research is the gap underneath the ranking, drawn from more than 300 North American distributors studied over two years. Nearly every distributor wants AI. Very few have shipped it.

300+distributors studied
93%call AI a strategic priority
16%run it in production

What separates the 16 percent isn’t size.

What separates the 16 percent from everyone else is not scale. DSG co-founder Jonathan Bein put it plainly.

The number one barrier is people, not technology. Either people don’t have the skills or they’re skeptical about AI.

Jonathan BeinCo-founder, Distribution Strategy Group

The distributors getting results share a pattern that has very little to do with tooling.

They Gave AI a Clear Owner

One person accountable by name, not a committee and not an initiative.

They Connected It to the Work

AI reaches into the systems where the work actually happens, instead of sitting off to the side as its own tool.

They Shipped It

It runs in production. It is not a pilot that gets renewed every quarter.

They Attached a Number

They measured whether it moved the business, and they can say by how much.

Notice what is missing from that pattern. None of it requires enterprise scale. A distributor doing $30 million can assign a clear owner as easily as one doing $3 billion. If anything, the independent has the edge here: fewer layers, faster decisions, and a leadership team close enough to the work to know exactly where the hours are going.

The constraint was never ambition. It was payroll.

For most independent distributors, the thing holding them back has been staffing. Running a modern commerce operation now calls for a set of specialized roles that are hard to justify on an independent’s payroll. The enterprise players simply hired those people. That is what tilted the field.

Old Way

The Old Way

One Hire per Function

  • Someone keeping the site current.
  • Someone on search and findability.
  • Someone on merchandising.
  • Someone making sure orders and integrations keep flowing.
New Way

The New Way

Capacity You Can Afford

  • The day-to-day work of a commerce channel still gets done.
  • Without a headcount for every function it demands.
  • The dashboards get the attention; the capacity is the point.

Fewer hires. More capacity. Real leverage.Run your commerce operation with the depth you need without the payroll you can’t afford.

AI changes that math. For an independent distributor, its real value shows up as operational capacity you could not otherwise afford: the ability to run the day-to-day work of a commerce channel without adding a headcount for every function it demands.

A distributor’s branch counter, one associate working the desk in front of the bin racks
The decision speed was never the problem. The payroll was.

Drafting is helpful. Doing is leverage.

Bein’s point still holds, though: the tool was never the hard part. AI earns its keep only when it can reach into the systems where the work lives. Software that drafts a page for you is helpful. Software that builds and updates that page inside your storefront, then shows you what it did before it goes live, is leverage. That gap between drafting and doing is the same gap between the 93 percent talking about AI and the 16 percent running it.

So the sharper question for an independent has nothing to do with matching Grainger’s AI budget.

Start there, in production, with an owner and a number attached. That is the whole playbook the AI Top 25 is quietly describing.

Industry benchmarking is coming.

The timing gives the question some urgency.

Summer 2026

NAW publishes its AI Governance Architecture

The National Association of Wholesaler-Distributors set out how the industry should govern AI.

September 2026

The NAW Institute’s AI Adoption Index

Billed as the field’s first benchmark of AI adoption across wholesale distribution.

From there

Movers and laggards get named

Distributors who move now will show up as movers. Those still debating it will show up as behind.

This is the thinking behind CX1 Sigma.

CX1 Sigma’s HyperScale Growth Agent Suite puts AI to work inside the operations a lean team runs every day: composing and updating storefront pages, keeping merchandising and promotions sharp, moving quotes and orders through, and keeping integrations healthy, with a preview and an audit trail before anything goes live.

The team still sets direction and makes the calls. What changes is the scale a small team can operate at, the kind of scale that used to require a large one. For an independent distributor, that is how the gap closes.

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