The Use of Artificial Intelligence in B2B Wholesale: A Success Story
It is a story about an AI journey with the Verband Technischer Handel (VTH).
In March of this year, we organized a very well-received webinar with almost 200 registrations and over 100 participants. Shortly afterwards, I received an email from Thomas Vierhaus, Managing Director of the Verband Technischer Handel (VTH): “Dear Mr. Pedretti, I followed your last webinar with great interest and think we could organize something similar for our members—let’s talk about it.”
This fateful email led me to eight kick-off meetings and countless good conversations about the application of AI around wholesale. A journey of around 6,200 km, the distance between Berlin and Mumbai.
I’ll tell you how it all went here.
The VTH Verband Technischer Handel e.V. – A Comprehensive Service Association
The VTH Verband Technischer Handel e.V. was founded in 1904 as a voluntary protective association for asbestos and rubber goods dealers and has developed into a versatile service provider over the years. Today, the VTH is the only trade association for the technical trade sector and acts as a professional association for technical dealers in Germany, Austria and Switzerland.
The association attaches great importance to proximity to its members and offers special platforms for professional exchange in various product groups. This is reflected in the organization of the VTH into eight regions and five specialist groups. These eight regions were briefly introduced to me to discuss the application of AI around wholesale.
The total turnover of the VTH members amounts to approximately 4.5 billion euros. It is distributed among approximately 230 technical supplies wholesalers, with approximately 400 sales outlets in Germany, Austria, Switzerland, and neighbouring countries. The product range focuses on technical rubber and plastic goods, drive elements, hoses and fittings, personal protective equipment, seals, and roller bearings.
Mr Vierhaus was enthusiastic about our webinar on the application of AI in B2B sales, had been following our development for several months and suggested organizing a similar event for VTH members. We spoke over the following days and agreed on the topic of the presentations. This was the beginning of an exciting journey through the world of technical commerce and Artificial Intelligence (AI).
Why was this trip so close to my heart?
Two things you may not know. First, if you ever have the opportunity to work with VTH or Mr. Vierhaus, I highly recommend it. The good old commercial handshake based, no bullshit, business gentleman. One of those still rare people who think first and foremost about the association and its members and then about everything else. The second thing you may not know is that I love giving talks and moderating discussions. That’s how I started my career. I was 19 years old at my first job, and Mr. Fischer from Festo Didactic in Argentina entrusted me with moderating technical courses and presentations. I have the industry in my veins.
That’s why I was overjoyed when Mr. Vierhaus announced in April that after a three-year break, the association would hire an external moderator, namely me. To my pride, the invitation read:
“This time, there will once again be an external speaker, namely Lucas Pedretti, Managing Director of Qymatix Solutions GmbH in Karlsruhe. His topic is: “Turn your business data into money!”. That will focus on the concrete application of artificial intelligence in technical retail using the example of predictive sales analytics. The remaining time available will be used for a mutual exchange of opinions and ideas on operational challenges and for reporting and discussing the association’s activities and the state of the industry.”
Would I be able to meet these high expectations?
1. Berlin, Berlin, we are going to Berlin
Berlin, the capital of Germany, was to be the first stop on this beautiful journey. I spent days preparing. I tried to prepare a talk with lots of examples that would captivate the audience and at the same time leave room for valuable discussions. As always, I had travelled by train the evening before to be safe in case of any problems. There was no way I was going to miss the event!
There were about 12 of us. To keep the tension high, we had problems with the projector – in a 5-star hotel. But everything worked out in the end. And we had a great discussion. The discussion ranged from concrete applications of artificial intelligence to the philosophy of how it is changing the world of work. It was a great meeting and an excellent start to this tour. I also finally got to meet Mr. Wagner from Technischer Handel Industriebedarf Mrose GmbH in person. We talked about his interest in our AI solution. The enthusiasm and commitment of the participants was overwhelming. That set the tone for future events.
2. Hanover: A successful second stop
“Experience is the teacher of all things.” Gaius Iulius Caesar.
Nothing is more important than getting out of the office and gaining experience. Even during a talk or a practical presentation, you can quickly fall in love with your subject and lose sight of the reality of the road ahead. That’s why I was particularly pleased to be able to visit APS Industrie-Technik GmbH in Hanover in fantastic weather.
Mr. Marquardt von Hodenberg, managing partner of APS-Industrie-Technik GmbH, showed interested colleagues around his company and cordially invited us to tour the premises before the regional meeting. APS-Industrie-Technik GmbH has been established on the market since 1978 as a specialist supplier of industrial valves, pumps, agitator technology, chemical hoses and filters. APS offers individual solutions, comprehensive advice, and over 80,000 items that are available from stock online (and offline)!
We met at 12.30 p.m. to welcome and introduce ourselves to the company. The tour will then begin before we head to the H+ Hotel for lunch. The general meeting began at 2 p.m. in the hotel’s “Paris” room.
An excellent discussion, including how wholesalers can use AI to satisfy their customers faster and more accurately. The circle was small, but the response was once again great. It was a pleasure to speak in front of an engaged group and discuss the possible uses of AI in wholesale.
The positive exchange and honest feedback showed the relevance and urgency of the topic. Many thanks to Marquardt Hodenberg, Hans-Christian vom Kolke and Jörg Wintzer for their valuable contributions.
There was a second unique feature in Hanover. I finally had the fantastic opportunity to meet Mr. Bernhard Flacke from the magazine Technischer Handel in person. We have been in contact with Mr. Flacke for several years and have repeatedly recommended and published interesting articles to each other. If you have the opportunity to advertise in the magazine or get in touch with Mr. Flacke, I can only recommend it!
3. Home game in Rauenberg, Hotel “Winzerhof”
“It’s great that you like taking the train, Mr. Pedretti, but you’ll find it very difficult to get there by public transport next time,” Thomas Vierhaus had warned me. He was right.
Fortunately, the general meeting of the VTH SÜDWEST region on Tuesday, May 7, 2024, at the Hotel Winzerhof in Rauenberg was almost a home game for us Karlsruheers, and I was pleased to have Svenja’s support. This time, it is simply by car and from door to door in an hour.
What data do I need for AI? How does tech retail use AI? An excellent discussion about how companies can use AI to satisfy their customers faster and more accurately. Whenever I meet super interesting people, contacts and experts (among others): Matti Dengler, Roland Pitsch, Patrick Pitsch, Christian Schirm, Roland Sudhoff. We discussed what data is needed for AI and how tech retailers can use this technology in practice. It was an enriching experience to make new contacts and learn from experts like Matti Dengler and Roland Pitsch.
Mr. Dengler’s beautiful words on the death of Klaus Sudhoff from the Sudhoff Group, who worked at VTH for 30 years, were also very moving. He was an integral part of the successful family business for over 60 years. In addition, Klaus Sudhoff was a member of the General Assembly from 1983 to 2008, including five years as Vice President of the Ulm Chamber of Industry and Commerce. He was a member of the Vocational Training Committee of the Ulm Chamber of Industry and Commerce from 1973 to 2004, 22 years as Deputy Chairman and nine years as Chairman. For his commitment and voluntary work, he was awarded the Golden Medal of Honor of the Ulm Chamber of Industry and Commerce, the highest award of the regional economy.
I thought again that artificial intelligence can do a lot for us. Still, the association, the sector and the industry live from the trust and experience of the people among each other. Again, I was very grateful to all those who trusted us and me through AI.
The delicious lunch with asparagus from the region was a little luxury. And as the saying goes, “All good things come in threes.”
4. Greetings from Erlinsbach, Switzerland
My maternal grandfather was an ophthalmologist and came from a Sephardic Jewish family. He was born in the province of Entre Ríos in Argentina. As a teenager, he left his strict parental home to devote himself to medicine. In the 1960s and 1970s, he became head of the eye department at the Hospital Español in Buenos Aires. His apartment in the middle of the city breathed books and culture. For him, no country in the world was more progressive than Switzerland. That’s why it’s always a pleasure and an honour for me to remember him when I visit the cantons of our neighbouring country. Some say: “Switzerland is a functioning Germany”. I think Switzerland is Switzerland and Germany is Germany. The trains indeed run more punctually there.
Just in time, after winning the Eurovision Song Contest, I gave a presentation on the potential of AI in sales to the general meeting of the VTH Region SWITZERLAND on Tuesday, May 14, 2024. The weather was great, the location was great, and the discussions were great!
We had a great and stimulating discussion about AI’s potential, risks and limitations in wholesale. How can we better serve our regular customers? How can we react faster to price changes from our suppliers? How do we get started?
As “one of the pioneers of AI in wholesale”, Thomas Vierhaus’ introduction made my cheeks flush. Yes, Qymatix Predictive Sales Software and I have been working in this field for more than a decade. Our company has been recognized as one of the most innovative start-ups in Europe, winner of the Industry 4.0 competition with a focus on AI and ERP systems and AI champion in BW. So we know what we’re talking about.
On the way to the hotel, I saw a house that read: “One waits for the times to change; the other tackles them and takes action”. At the kick-off event, I got to know many people who really tackle and act every day.
I was delighted to be able to spend the day with VTH members from Switzerland who are taking action. And to be able to reflect a little on my “Tata”.
5. Region RHEINLAND with company visit to Hugo Roth GmbH
The fifth regional members’ meeting took place in Wilnsdorf on May 22. That means that we have entered the second half. The first four went very well, but this one was great. The participation and discussion of ideas breathed much life into the slides. It was beneficial to have visited the excellent example of Hugo Roth GmbH before the meeting.
Many people think that industrial wholesalers, the small family businesses in Germany, are not innovative enough, especially technologically. Before my presentation at the VTH’s fifth kick-off event, I saw the opposite for myself.
Hugo Roth GmbH has been an owner-managed family business specializing in occupational safety and industrial wholesale since 1922. Managing Director Timm Bendinger introduced us to the traditional company with its regional and national profile and its commitment to its customers. The company continuously invests in technological innovations. It has a strong IT team that supports colleagues, suppliers and customers. Marianne Bendinger, his mother, who took over the management of the company more than 30 years ago, contributed her sympathy, experience and expertise.
It was impressive to see the courage and consistency with which the management has invested and developed into the market leader in specialist wholesaling. In addition to the investments in technology, Wolfgang B. Klein, authorized signatory and purchasing manager, impressed us with the new rowi Safetycenter, in which the experience and expertise of Hugo Roth GmbH is presented to customers in its entirety.
This members’ meeting was also the best attended of all eight, and I had the great opportunity to talk to Mario Ernst, Managing Partner of PIEL Die Technische Großhandlung GmbH and VTH Board member as Chairman, and Jan Krückemeyer, Managing Director of Krückemeyer GmbH, a member of the VTH Board, about AI in wholesale.
In times of crisis and uncertainty, democratic uncertainty, the work of all association members is very valuable. Once again, it was a great honour for me to be part of this magic.
6. Severe weather warning in Bavaria – Do not travel to Munich. General meeting of the VTH region BAYERN
I am happy to have been invited to speak at the sixth general meeting of the VTH Verband Technischer Handel e.V. on Tuesday, June 4, 2024. This time, the conference was held centrally in beautiful Munich at the Hotel Le MÉRIDIEN.
Initially, I had been looking forward to a few productive working hours on the train. Still, unfortunately, the storm damage in Bavaria, which led to train cancellations and delays on long-distance and local services, thwarted my plans. Thanks to the bus, I still arrived on time!
The discussions on artificial intelligence in technical wholesale were once again fascinating and inspiring. Particularly impressive were the many forward-looking ideas that Andreas Schröter shared with us. The VTH proves once again how innovative its members are!
Technical trade is the heart and soul of the economic engine of our country and, therefore, of Europe as a whole. It was a great pleasure and honour for me to speak here.
After the meeting, we all looked forward to a cold beer over dinner at the Augustiner Stammhaus, which is known for its traditional Munich hospitality. Unfortunately, the weather didn’t get any better, and I had to head south the next day. Would that work?
7. Linz: General meeting of the VTH Austria region
After devouring golden nuggets for breakfast in Munich – at least that’s what it felt like at that price – I took the train to Linz. The journey took me through picturesque Salzburg, and I had the day to devote to my work and stroll through the charming streets of Linz. The Danube was still under the impression of the recent flood, its banks freshly scarred by the high water levels.
On Thursday, June 6, 2024, the time had come: the next regional meeting took place at Linz Airport. It was the second international meeting and the seventh meeting of the VTH Verband Technischer Handel e.V. in the enchanting city. Although my presentation was a tried-and-tested classic, the lively participation of the audience always provided new impetus. This time, everything revolved around the challenges and opportunities of market-driven pricing in the B2B sector with the help of AI, missing data, and data quality problems.
Unfortunately, I was unable to attend the company visit to WANGGO Gummitechnik GmbH, even though I had heard it was very interesting.
The discussion was intense and enriching, especially thanks to the contributions from companies such as Haberkorn GmbH, DEXIS Austria, Wanggo Gummitechnik GmbH and Kaindl Technischer Industriebedarf GmbH. One particularly memorable anecdote about my presentation was that I had to interrupt it twice to listen to the announcements of departing airplanes over the megaphone. That gave the whole thing a special touch.
Immediately after the presentation, I could only say goodbye and drive back to Karlsruhe via Munich. With luck on my side, I got there without any problems. Just a few days earlier, the authorities had advised against traveling to the region. Would I have the same luck and success at the last meeting?
8. General Meeting of the VTH Region NORD
Last but not least.
On Tuesday, June 11, 2024, I was able to give my last presentation at the VTH Members’ Meeting at J. H. Jaeger & Eggers Handelsgesellschaft mbH in Bremen. Despite a certain melancholy, I did everything I could to inspire the participants with my presentation on “Turn your business data into money!”. I wanted to introduce them to practical artificial intelligence applications in technical retail, mainly through predictive sales analytics. My goal was not only to inform them but also to inspire them on how they can optimize their business processes through AI and create real added value.
Beforehand, I had the opportunity to visit the impressive premises of J. H. Jaeger & Eggers – 15,000 items on 3,000 m². For the colleagues of the VTH Verband Technischer Handel e.V., the company tour was an excellent opportunity to gain a deeper insight into the workflows and innovative processes of J. H. Jaeger & Eggers Handelsgesellschaft mbH & Industriebedarf Niemann-Laes GmbH. The newly designed showroom, affectionately known as the “meeting city”, clearly shows how important and relevant personal contact still is in the wholesale trade.
A big thank you to Mr. Maximilian Krause, the plant manager, for the friendly welcome and the informative tour. Many thanks also to Till Eggers and Philipp Mitzscherlich! Many thanks for the olive oil and to Ms. Nori for the delicious kisir we could enjoy for lunch.
The visit highlighted the company’s commitment to excellence and continuous improvement. Such experiences are invaluable in promoting collaboration and sharing best practices in our industry.
Finis coronat opus. (The end crowns the work, Ovid)
CALCULATE NOW THE ROI OF QYMATIX PREDICTIVE SALES SOFTWARE
Eight Times VTH – My Conclusion
As Mr. Vierhaus said more than once, AI is on everyone’s lips, but most wholesalers are still looking for concrete applications. I am very glad that I inspired some of them to get started.
We at Qymatix Solutions GmbH look forward to more opportunities to learn and collaborate. Together we are driving innovation and growth in technical wholesale and I look forward to continuing these conversations and the impressive progress we can make together!
My special thanks go to the VTH Verband Technischer Handel e.V. for organizing this enriching event. The engagement and exchange of ideas during the dynamic discussion on the role of AI in transforming business processes was truly inspiring and underlined the spirit of collaboration in our industry.
This story is not over yet.