How to Choose the Right AI Software for Your Wholesale Distribution Business
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“We cannot change the direction of the wind, but we can set the sails correctly.” This sentence by Aristotle (or was it Plato?) may be thousands of years old, but it gets to the heart of what sales managers need to pay attention to today.
Wholesale distribution is in a class of its own. You manage between 5,000 and 10,000 customers, juggle anywhere from 20,000 to 100,000 items, and are constantly under pressure: margins are thin, the product portfolio is complex, and the competition never sleeps. Efficiency is not a luxury—it is your lifeline.
But how do you stay efficient when complexity increases? The key lies in the right AI software. So, how do you choose it?
With thousands of customers, tens of thousands of items, and huge pressure to work more efficiently, many wholesalers are turning to AI software solutions to improve their processes. But how do you choose the right AI solution? Read on, and we’ll help you set sail so you’re not just sailing with the wind but harnessing it to your advantage.
The Initial Situation: Why Is AI in Sales Relevant Right Now?
“We are currently seeing that AI start-ups are increasingly interested in the wholesale sector,” says Jan Peter Coblenz, Chairman of the Digitalization Working Group and Managing Director of Brangs+Heinrich GmbH. “The volume and heterogeneity of data in wholesale is many times greater than in most industries. This makes our level of the economy highly interesting for the AI sector, which has a systemic lack of training data in Germany and Europe.”
And he is right. The amount of data a typical specialist wholesaler generates is staggering—and this is precisely where the opportunity lies. However, this is not entirely new. I first noticed this trend in 2013 when I founded Qymatix. With the right AI tools, analysis times can be drastically reduced, better decisions can be made, and sales teams can be relieved.
But the reality is often disheartening: “An average B2B sales department without AI support only spends 35% of its time actively selling,” says Coblenz. Time-consuming pre- and after-sales processes and analyses eat up the rest. A study by McKinsey shows that AI-supported sales can increase the time spent with customers to over 50 percent – with impressive effects on turnover and customer loyalty. Do you want to leave these advantages to your competitors?
AI Software for Wholesale: Understanding Requirements
Choosing the right AI software starts with honestly assessing your initial situation. What are the biggest challenges for your sales department? Talk to your team. You always strive to do what’s best for your company and customers. Be proactive but make your own decisions.
In conversations with sales managers, I hear the same problems again and again:
• Churn and customer loyalty: why are so many customers switching to cheaper competitors? Even loyal customers can shop anywhere these days.
• Pricing: How do you dynamically set your prices to remain competitive while protecting your margins and customers? If you’re still doing this manually with Excel—good luck.
• Cross-selling: Does your sales department know which products your customers really need? Do you just send the customer your catalog and expect them to figure it out?
These questions can be answered with the right software – provided you know what to look for. And, of course, you usually have a combination of these challenges, if not all of them, at the same time. This is how your software should work, at least in the near future.
Let’s get started.
Choosing the Right AI Software: Key Criteria
Of course, your situation, the size of your business, and your resources will determine some of the criteria you use to select your AI software. However, specific general criteria should be considered: budget, functionality, adoption, and long-term prospects.
1. Budget: Price is important, but value is critical. AI software may seem cheap, but bad decisions are not. Pay attention to the total costs: Does the software include all essential functions, such as pricing, churn analysis, and cross-selling? If not, you may face additional costs later on. For example, providers such as Qymatix offer a complete solution that covers these functions.
Other important questions to ask yourself:
• Is there an online academy?
• How much time and money do you need to train your sales representatives?
• Are there APIs for integration into your existing systems?
These seemingly small things can save time and money later on.
2. Functionality: What does your team really need? Not all AI software has been optimized or developed for wholesale distribution. Beware of custom-built solutions from AI consultants or IT service providers! In the long term, they can cause more costs than benefits. Functions such as automated price recommendations, churn forecasts, and cross-selling suggestions are clearly indispensable for wholesale distribution. But it’s not just about technical capabilities. The software also needs to be user-friendly and responsive to the needs of your sales force.
Ask yourself:
• How accurate are the predictions? Do professional data scientists verify them, or does your vendor just have a nice vision, shiny but untested software, and little experience?
• How long has the provider been around? For instance, Qymatix has been working on AI for B2B sales since 2013 and was named AI Champion in 2021. Few companies have this level of valuable experience. Trust proven providers with industry expertise.
3. Adoption: There will be no results without adoption. AI is only valuable if your team uses it. Software that is complicated or does not deliver relevant results will not be used. Look for providers that offer training and implementation support.
A quick pause: Would a sales manager be willing to buy an expensive tool nobody uses? Of course not. Acto! (Latin for “act”). Action must follow; otherwise, the potential will be lost.
4. Long-Term Prospects: Is the provider financially stable? Many AI start-ups depend on external capital. This isn’t necessarily bad, but be critical: do these companies work for their investors or you? Who are the provider’s customers, and how long has the company been around? Some will want to work with venture capital; others will try to develop their own solution. Still, others will start today with a proven expert in the field. Which path will you take?
Tips for Implementing AI Software in Wholesale
Introducing new software is not just a technical project but, above all, a cultural one. Here are three quick tips to make the process easier:
• Communicate the benefits clearly: Your team needs to understand why this change is essential – and what it means for them.
• Start small and get feedback. AI for wholesale is no longer an experiment.—The technology works and has been tried and tested. Pilot projects can take away your momentum and cost you a lot of time. Use a proven AI solution and take a step-by-step approach.
• Talk to experienced solution providers in your segment who have already gained experience in your industry and know its problems well, including typical acceptance challenges and data issues.
After all, AI software is not a CRM. Don’t get bogged down with requirements for your CRM, email, or ERP provider. AI is “just” a glimpse into the future, a truly mathematically gifted sales colleague who is always ready to support your team.
Not convinced yet?
Fact Check: Why AI Is Becoming Indispensable in Sales
The right AI software can make the difference between success and stagnation. In wholesale, where margins are small, and challenges are significant, it is a key lever for efficiency and growth.
Remember: software alone does not solve problems. Success depends on the right combination of people, processes, and technology. Here’s why: The average B2B sales representative spends only 35 percent of their time on sales activities—AI can increase this proportion to over 50 percent. In addition, companies that use AI in sales report an average turnover increase of 20 percent, according to McKinsey. Finally, AI can also reduce churn by 15 percent, as AI tools can recognize at an early stage which customers are at risk of churning.
Even if I repeat myself, choosing the right AI software depends on your budget, team, and needs. If you are a typical German wholesaler with 50 to 500 employees, you need AI software that can suggest prices, reduce customer churn, and provide cross-selling opportunities.
CALCULATE NOW THE ROI OF QYMATIX PREDICTIVE SALES SOFTWARE
Conclusion: Act Now!
The question is no longer whether to use AI software but which one. Wholesalers face immense pressure to optimize processes, protect margins, and strengthen customer relationships. The right AI software can improve your team’s efficiency and increase competitiveness. We’ve discussed which one is right for you here.
“Cogitatio sine acto vana est.” Thinking without acting is meaningless. Haven’t made up your mind yet? Contact us and discover how we can help you rethink wholesale distribution with AI. Your customers—and your margins—will thank you.