While fundamentals like demand and lead time remain constant, the swift disruption of external market conditions requires a flexible approach to inventory management, as outlined in Phocas’ 2026 Inventory Trends in Wholesale Distribution Report.
“Inventory management can be siloed in a distribution company. To do it well, the purchasing team needs to work closely with sales and finance so they can move with the market,” says Myles Glashier, CEO and co-founder of Phocas.
Key takeaways:
· When asked what capabilities they want to enhance or add this year, wholesalers advised demand planning, more data and warehouse automation and customer and product segmentation.
· Distributors cite economic uncertainty as the most impactful challenge, with competition closely trailing. Boosting efficiency stands as the top priority.
· 54% want new demand planning techniques, while 45% are embedding more data-driven and automated warehouse solutions.
· 26% report 6-10% in deadstock, linked to over 90 days of stock held by 22%. Six in 10 distributors believe sales are compromised when they have inadequate stock.
· 14% have witnessed increased revenue; 34% have curtailed inventory costs. Enhanced service levels are recognized by 24%; better supplier terms by 12%.
· Confidence in inventory data is high among 31%, with 87% acknowledging improved supplier management.
· Data sharing with suppliers improves lead time accuracy (9%) and fosters joint planning (8%).
