From the Proton team
May’s been loud. Wholesale inflation is hitting harder than a forklift to the shins, AI is now showing up as a teammate more than a tool, and the smartest distributors are figuring out how to sell on value before the next round of margin pressure hits.
This issue digs into all of it, so without further ado, let’s get to the good stuff!
In our ears
Matt Cohen, CEO of Replenex, on building a successful services strategy
Matt Cohen, President of Replenex, recently joined us on In the Mind of a Distributor to get candid about the difference between a “family business” and a “business owned by a family,” the tough conversations that came with redrawing those lines, and why most distributors are quietly underpricing the value-added services their customers depend on.
“Today’s low price is tomorrow’s high price.” That’s Matt’s read on why margin pressure keeps winning, and why he’s convinced selling on value is the only real escape hatch. If you’re tired of watching the channel race to the bottom while everyone pretends commoditization is someone else’s problem, this one’s worth the 30 minutes.
AI, captain!
Meet your new coworker
Gartner’s got a new piece on building a “human-AI workforce,” aka what happens when AI stops being a tool you open and starts being a teammate you Slack. It found that 88% of CEOs are upping their AI bets, and the share of tech work handled by AI agents is on track to nearly triple by 2029.
But over half of CIOs say new skills are needed faster than they can hire for them. The Gartner reframe worth dog-earing: stop asking what work AI can take away. Start asking what capacity it frees up, and where that capacity should go. The companies that win this next chapter will spend just as much energy on their people as on the tech.
Things SKU should know
May news in review
Inflation is hitting distribution hard. Wholesale inflation jumped 6.0% annually in April (the highest mark in over four years) with machinery and equipment wholesalers seeing particularly widened margins. Translation: your customers are feeling the squeeze, and so are your suppliers. Pricing conversations just got a lot more interesting.
Legal landmines are also ahead. The Supreme Court’s ruling in Montgomery v. Caribe Transport II disappointed NAW and the broader distribution community by limiting federal preemption protections for freight brokers. Why this matters: more state-level liability exposure could trickle down to distribution logistics costs.
And the consolidation continues! Japan’s bearing giants are teaming up. NSK and NTN signed an MoU for business integration that would create a nearly $12 billion power transmission powerhouse. For distributors carrying these lines: expect some supply chain reshuffling as the integration plays out.
On that note, we also saw quite a few noteworthy acquisitions this month. Building materials leader US LBM grabbed Builders Supply Company to boost its Charlotte presence, while Graybar scooped up American Electric Supply for Southern California expansion. Add Motion & Control Enterprises acquiring TLR Hydraulics in Dallas-Fort Worth, Veritiv’s Florida and New Jersey packaging deals, and Rexel USA’s $330M Revere Electrical acquisition, and you’ve got a clear pattern.
Link(ed) in bio
It all comes down to data
Most AI projects don’t fail because the AI is bad. They fail because the data’s a mess. Bolting AI onto siloed systems is like sending your best sales rep into a pitch with no product catalog, no inventory data, and no pricing sheet. Doesn’t matter how sharp they are, without context, they’re toast.
The key to getting this right is connecting your systems first, so the AI you deploy actually has something to work with.
Read more about this (and give Benj a follow while you’re there) here.
New on the shelf
Proton CRM updates
Picture this: your top rep just gave notice, they’re sitting on 200+ customer accounts, and suddenly you’re staring down a spreadsheet rabbit hole that would make a tax accountant cry. For most distributors, reassigning that book of business is a multi-day scramble of lost records, confused customers, and missed orders.
Proton CRM turns that nightmare into a five-minute task. One customer recently lost their best rep mid-busy season and split the territory across three teammates in the time it takes to reheat lunch. No accounts slipped through the cracks, no customers got radio silence, and no revenue walked out the door.
Curious what that could look like for your team? Watch a demo and see what you’ve been missing.
New webinar, who dis?
The practical AI playbook for every distribution team
Distributors know AI is coming. Few know where to actually start.
After delivering this workshop live at IMCO National Convention and hearing how much it resonated, we’re making it available to more teams across the industry.
Join us on June 27th as we break down the three types of AI that matter right now, where they create the most leverage across your team, and how leading distributors are already using them to cut admin work, grow accounts faster, and do more without adding headaches.
Bonus: attendees will walk away with a free guide covering where to start with AI in your business and the key questions to ask any AI vendor before signing.
Stay in touch
Just because our newsletter is monthly, doesn’t mean the insights have to be! Connect with Benj on LinkedIn to hear his latest musings and best practices weekly.
Got thoughts on this issue? Share ’em! Let me know what you liked, what felt off, or what you’d like to see more of. Seriously, I read every reply.
Until next time
Katie WhiteSr. Content Marketing Manager, Proton.ai
