The Wholesale Change Show

Amazon Business is on track to double in size, and it’s coming harder for MRO. Ian Heller and Mark Brohan unpack what Amazon Business announced at Reshape in Nashville, from conversational agentic procurement to its new SAP integration, and what it means for distributors fighting to protect wallet share.

Then we look at who is putting real numbers behind agentic commerce. Ingram Micro credits its agent program with 33% more orders processed and $1.6 billion in revenue, while Grainger, QXO and Fastenal ramp up their own AI efforts.

We also break down a K-shaped earnings season. Wesco’s data center sales jumped 55%, while Builders FirstSource and SiteOne struggle with housing. Add fading price increases, a growing focus on big customers and profits, and an M&A market where buyers want to get closer to the customer.

Plus, our lightning round tackles Amazon Business at $100 billion, AI agents paying distributor invoices and HVAC roll-ups moving into plumbing.

It was a big week in distribution. We break down what matters and why.

With Ian Heller out this week, Mark Brohan welcomes guest co-host Lindsay Young of 3 Aspens Media, a longtime B2B journalist and distribution analyst, to break down a packed week of Q3 earnings and AI headlines.

We start at Amazon Business’ Reshape event in Nashville, where Amazon Business rolled out new AI tools for procurement. Then we dig into MSC Industrial’s 10% sales growth and its decision to write off $48 million of a digital commerce overhaul in favor of AI tools. On the electrical side, we cover Sonepar’s $563 million AI investment and Rexel’s 14.6% sales growth on data center demand.

We also look at Genuine Parts’ Motion and its coming spinoff, plus a Simon-Kucher survey in which 76% of distributors expect their growth outlook to improve, and why pricing and near-$7 diesel still have executives on edge.

Our lightning round covers national account price wars, big-bang ERP projects, AI-generated quotes, cost-plus pricing and whether Motion is worth more on its own.

It was a big week in distribution. We break down what matters and why.

Fastenal just posted a 15.5% quarter, but where did the growth come from? Ian Heller and Mark Brohan dig into the early earnings season, from Fastenal’s reliance on big enterprise accounts and its trimmed digital sales target to what AI is doing to inventory ordering times. Amazon Business, Walmart for Business, Home Depot, Grainger and AD all figure into the competitive picture.

Then we look at DigiKey, which is investing $100 million in automation and says it’s on pace to grow more than 50% this year. We also cover Medline’s latest distribution center expansion and why automation is so much easier in a sealed-box warehouse than a broken-box one.

We also unpack Winsupply’s push into Greater Philadelphia with a former Ferguson executive, and what inflation and diesel nearing $7 a gallon mean for distributors trying to pass costs through to customers.

Finally, RNDC and Ascendant are winding down, and the stories behind them are a warning for the industry. Plus, a lightning round on Fastenal’s small customers, vending versus AI, fuel surcharges and who’s next to go in 2027.

It was a big week in distribution. We break down what matters and why.

Earnings season is about to kick off, and the deal scorecard is already coming into focus. Ian Heller and Mark Brohan break down what the latest M&A data says about why investors keep piling into MRO, fasteners and HVAC while construction supplies, where White Cap has the field largely to itself, gets overlooked. Fastenal, Watsco, Home Depot, Lowe’s and QXO all figure into the conversation.

Then we turn to the robots. McLane’s pilot with Aurora puts driverless trucks on the road for a Berkshire Hathaway foodservice distributor, while warehouse robotics keep spreading through First Supply, NAPA and Southern Glazer’s, with Amazon’s robotic hand and Figure’s humanoids on the horizon.

We also look at a Reshape Automation study that put ChatGPT, Claude and Gemini through industrial supply ordering (the top score was just 52%), and what a steady jobs report says about hiring, wages and the frontline workforce in wholesale distribution.

Plus, a lightning round on private equity, driverless trucks, clean product data and whether distributors will employ fewer people by 2028.

It was a big week in distribution. We break down what matters and why.

Distribution Strategy Group's "Wholesale Change" dives into Home Depot's aggressive branch expansion plan, which includes up to 50 new SRS locations as it pushes deeper into plumbing and HVAC behind its Mingledorf acquisition.

We also unpack branch strategy across the industry, from Grainger's and Johnstone's dense branch networks to Winsupply's unique entrepreneurial, locally-owned model — now closing in on $10 billion in sales and backed by a fresh investment in AI.

Then we turn to the frontline: why 60% or more of a typical distributor's workforce is deskless, and the real cost of ignoring them, with a look back at how Coke built commission incentives into its e-commerce rollout to win over its sales reps.

Plus, our lightning round tackles whether SRS will out-build Ferguson, Watsco and Carrier to become HVAC's biggest branch network within five years.

It was a big week in distribution. We break down what matters and why.

Distribution's buying-group wars are heating up again. Ian Heller and Mark Brohan dig into AD's reacquisition of SupplyForce, the national-accounts platform AD spun out decades ago and is now folding back in-house — its 18th acquisition to date — and what that means for independents trying to compete with the likes of Grainger for big national contracts.

From there, it's another chapter in the data-center land grab, as Rexel agrees to pay $1.4 billion for Chicago-based GCC, putting it in direct competition with Sonepar for a construction wave that may be slower to materialize than expected.

We also look at Lowe's testing drone delivery straight to the job site, regional plumbing and HVAC distributor Hills Distribution's national e-commerce push with Pex Universe, and why Walmart — quietly building out Walmart for Business and automating its distribution centers — may be the most underestimated competitor in wholesale distribution.

Plus, our lightning round tackles whether Walmart-level automation will force mid-market distributors to catch up or fall behind.

It was a big week in distribution. We break down what matters and why.

Hosts Ian Heller and Mark Brohan dig into a busy week in wholesale distribution and what it means for industry leaders.

We start with Fastenal's quiet acquisition of Rampp.ai, an agentic AI platform the industrial distributor has never formally announced, and what it signals about building AI capability in-house rather than waiting on ERP vendors.

We also break down Watsco's move to acquire The Granite Group, a $500 million Northeast plumbing and HVAC distributor, its second major deal of the year following Jackson Supply Co.

Then we get into diesel prices, which hit a record $6.285 a gallon, and how Builders FirstSource, Grainger, MSC Industrial, Ferguson, Sysco, Performance Food Group and US Foods are each absorbing the hit differently.

Plus, a new ransomware report shows midmarket distributors are the real targets, and Office Depot retires the ODP name nine months after Atlas Holdings took the company private.

It was a big week in distribution. We break down what matters and why.

Distribution Strategy Group’s “Wholesale Change” is back!

Hosts Ian Heller and Mark Brohan are joined by Brian Hopkins to break down a busy week in wholesale distribution and what it means for industry leaders.

We start with customer service in the age of AI agents, then dig into Sysco’s plan to cut at least $500 million in costs by fiscal 2029 through automation and agentic AI.

We also look at Genuine Parts Company’s Motion and the leadership team that will take the industrial distributor forward after its planned spinoff, plus a rapid series of CEO transitions at Crescent Electric Supply Company, Air Hydro Power and ABC Supply Co. Inc.

Then we get into the numbers: wholesale sales, inventory ratios, freight costs and manufacturer demand. What are they telling distributors about where the market is headed?

Plus, our lightning round covers Uline, Core & Main, Franklin Electric and Continental Battery Systems.

It was a big week in distribution. We break down what matters and why.

Distribution Strategy Group's "Wholesale Change" is back!

Hosts Ian Heller and Mark Brohan dig into a busy week in wholesale distribution and what it means for industry leaders.

We start with Home Depot, Lowe's and Sysco all formalizing a chief AI officer role, and ask whether that title actually matters for mid-sized distributors or is just a headline grab for the giants.

We also break down what the latest manufacturing and services PMI readings are really telling distributors about inventory planning, plus Grainger's $210 million investment in automating customer site inventory management.

Then we turn to M&A: Ferguson's $1.6 billion acquisition of Flowworks, Winsupply's plan to add 1.6 million square feet of capacity across Ohio, Oklahoma and Georgia, and whether private equity is playing too big a role in distribution deals.

Plus, our lightning round covers Amazon's robotic-hand fulfillment tech, the Lowe's Foundation's quarter-billion-dollar trades investment, and whether Ferguson itself could become an acquisition target.

It was a big week in distribution. We break down what matters and why

Wholesale Change is a weekly live news show for the distribution industry, hosted by Ian Heller and Mark Brohan. Each episode dives into the stories that actually matter to distributors—earnings reports, M&A, AD and buying group developments, Amazon Business, AI, and the strategies behind the headlines.

This isn’t a neutral recap; it’s a news + analysis + opinion program. Ian and Mark bring decades of distribution and B2B expertise to:

Explain what’s really driving the numbers behind public and private distributors

Connect quarter‑to‑quarter trends across leading players

Call out who’s talking about AI vs. who’s actually doing it

Explore what industry shifts mean for mid‑market distributors trying to compete at scale

This episode of The Wholesale Change Show features Mark Chadwell, who shares how Chadwell Supply became the largest privately owned multifamily maintenance supplier in the US. With a faith-driven, employee-focused culture and advanced technology, they serve over 50,000 customers across 36 locations. The show also highlights Tornet’s AI solutions for distributors and the Customer Experience RX program that boosts satisfaction and loyalty. It's a must-listen for anyone in distribution looking to excel in customer service and growth.

Watch on-demand for an exclusive pre-conference conversation with Don Sarno, Senior Vice President of Digital Enterprise Americas at Sonepar, as he shared insights ahead of his session at the Applied AI for Distributors Conference in June.

In this engaging discussion, Don explored the transformative role of AI in distribution, how Sonepar is leveraging AI to drive digital innovation, and what the future holds for AI-powered supply chain and customer experience strategies. Get a sneak peek into the key themes and takeaways from his upcoming presentation at the AI conference.

Key Takeaways:

* How AI is reshaping the distribution landscape

* Sonepar’s approach to digital transformation and AI adoption

*Practical AI applications that enhance operational efficiency and customer engagement

*What to expect from Don’s session at the Applied AI for Distributors Conference in June

Don’t miss this opportunity to hear from one of the industry’s leading voices on AI and digital transformation. Register now to gain early insights into AI’s impact on distribution and prepare for the conference in June!

Listen to this episode of The Wholesale Change Show, featuring special guest Brendan Breen, CEO of the Industrial Supply Association (ISA).

ISA’s annual convention, ISA25, starts March 31 in Nashville. The organization – which serves distributors, manufacturer reps and manufacturers – continues to introduce new initiatives to drive growth and support members in the industrial channel.

The conversation dug into:

The importance of building and maintaining strong channel partnerships
How ISA members are tackling the challenges the industry faces today
The role ISA is playing in educating and engaging with the channel around critical issues such as tariffs and the talent gap
ISA’s newest initiatives, including the building of a veteran network
How distributors can leverage ISA's resources and insights

Don't miss this opportunity to gain actionable insights from Brendan, who because of his role, brings a holistic view of the industry to the table.

Voomi is an ecommerce HVAC distributor that works with OEMs and other distributors to provide an extremely wide assortment of products to customers across the U.S. The company gives their supply partners access to new customer segments and regions so they can expand their markets.

Listen now to hear Voomi CEO RJ Cilley discuss the company’s unique value proposition. As distribution channels and partnerships continue to evolve, it’s essential to hear from the leaders building new business models that meet customers’ increasingly demanding requirements.

Over the past four years, The Wholesale Change Show has featured CEOs from MSC Industrial, Global Industrial, Zoro, Lawson Products, Johnstone Supply and dozens of other leading distributors. It’s the most informative and entertaining webcast and podcast in distribution!

Watch on-demand for a special milestone event as we celebrated our 100th episode! We looked back on what we’ve learned and talked about the state of the distribution industry today and where it’s going.

Distribution Strategy Group’s own Ian Heller, Jonathan Bein and Brian Hopkins were joined by long-time distribution executives and frequent guests Ron Paulson, who spent decades at Grainger, Eric Wessinger of Richards Supply and Dirk Beveridge, Executive Producer of We Supply America.

Whether you’re a longtime listener or new to the series, this event is a must-watch.

The second half of 2024 has been defined by uncertainty, with the election looming and economic indicators wavering.

Alex Chausovsky, a highly experienced market researcher and analyst, clarified the murky forecast when he joined Wholesale Change hosts Ian Heller and Jonathan Bein to talk about what distributors can expect in the rest of 2024 and beyond.

He provided practical and actionable advice to help you chart a course in the new year.

We discussed:

The impact of the U.S. presidential election
Economic growth projections
The impact of interest rate fluctuations
Labor market trends
The supply chain outlook
Sector-specific insights
And more

You won’t want to miss this. Listen now!

Watch on-demand as hosts Ian Heller and Jonathan Bein sit down with Wes Smith, the president and CEO of the National Association of Electrical Distributors (NAED).

Wes started his current position in January 2024, but he’s no stranger to the electrical industry or the association. He spent more than 34 years with Mayer Electric, including 14+ years as president before they were acquired by Rexel. At Rexel, he served as Chief Strategy and Growth Officer.

After three decades in the industry, he was named NAED’s chairman from 2020-2022 and remained on the executive committee until he was appointed to lead the association.

We talked with Wes about:

*NAED’s mission in the electrical industry
*What’s driving the electrical distribution industry, including challenges and opportunities
*How NAED collaborates with other groups in the channel
*How NAED is tackling key issues, including energy policy, workforce development, supply chain transparency, data standards and more
*The future role of organizations like NAED in the distribution industry

On this episode of The Wholesale Change Show, we welcomed Zoro President Sandy Mattinson.

Zoro is an ecommerce platform that helps businesses thrive by offering an endless assortment of products for every business need. Launched in 2011, the Grainger subsidiary has grown rapidly to over 600 team members and over $1 billion in annual revenues.

Sandy joined Zoro in 2019 as the company’s first female vice president and established its business development, category management and digital merchandising capabilities, which were instrumental in expanding Zoro’s assortment to more than 13 million products.

Sandy continues to invest in the culture that has seen Zoro recognized repeatedly as a great place to work.

“My ‘North Star’ is helping people in businesses thrive,” she says. “Our business customers, our distributor partners and our team members. That’s how Zoro thrives, too.”

In this conversation, we explored the company’s value proposition and how Sandy is helping build on its success by investing in the success of other distributors.

Watch as Distribution Strategy Group’s Ian Heller is joined by some of the technology leaders who participated in our recent conference, Applied AI for Distributors.

During an information-filled, action-packed event, attendees spent two and a half days immersed in the latest information and education on AI and how it can help distributors grow sales, drive productivity, improve CX and provide better services. During this discussion, panelists reviewed:

General session speakers: Zack Kass was at OpenAI when they launched ChatGPT and now he’s a futurist with an inspiring and profound message about the future of AI. Theresa Payton is a former White House CIO who spoke on how AI impacts cybersecurity threats. Brooks Hamilton spoke on how AI can drive profitability and Jonathan Bein gave an overview of AI applications for distributors. We’ll also talk about the eyebrow-raising presentation Grainger’s Chief Product Officer Brian Walker.

Networking: Always the best part of a great conference, the networking was amazing at the Applied AI event. The starry-eyed looks we saw at the last event are gone; now, distributors are in the market for applications to help them run better businesses – now.

Breakout sessions. Dozens of technology companies demonstrated existing AI applications or offered sneak peaks about what’s coming soon.

Learn about the conference if you couldn’t attend or participate in a review discussion to refresh your memory if you were there.

Can AI truly make a real-world difference, today, in a mid-sized distribution company? The answer is yes and Millcraft is one company who did it by focusing on adopting the latest technology and recruiting and training a workforce that understands how to use it. Among other solutions the company has implemented AI tools for order automation that has increased touchless ordering to 60%.

Watch the Wholesale Change Show on-demand with hosts Ian Heller and Jonathan Bein, Ph.D. as we welcomed our guest Travis Mlakar, president of Millcraft. Learn how Travis incorporated AI to make a significant difference, freeing up employee time to focus on what is truly valuable to the customer. Travis also discussed the next steps for the company. Using advanced analytics along with AI, Travis will be optimizing cross selling, supply, and other areas for ready for advancement.