What the Smartest Distributors Are Focused On Right Now: My Key Takeaways from MDM Shift

By Todd Daubenberger, Chief Revenue Officer at White Cup

If you’re a distribution executive wondering what your peers are prioritizing in this economic climate, the MDM Shift conference delivered a clear message: the future belongs to distributors who move fast, modernize sales, and lead with purpose.

With about 300 attendees – most from the heart of our industry – the event felt like a pulse check on what’s working, what’s evolving, and what’s next for distribution leaders.

Here are the biggest takeaways I brought home:

Growth Comes from More Than Just Product

Many of the most successful distributors are expanding beyond traditional product-based sales. Value-added services – like kitting, light assembly, repair, testing, warehousing, even training – are commanding >40% gross margins in some cases. These services not only deepen customer loyalty but also act as a competitive moat. When a customer depends on you for more than just product, you’re no longer interchangeable.

Here’s the kicker: these aren’t massive, high-capex endeavors. Several panelists stressed starting small – offering testing or light assembly for just a handful of SKUs, then building up. The goal isn’t perfection; it’s traction.

One distributor shared how they started offering private-label packaging for a segment of customers and quickly became that customer’s default supplier – not because they had the lowest price, but because they added the most value.

The distributors that are winning are becoming true solution providers, not just order takers.

Hybrid Sales Models Are the New Normal

The “death of outside sales” narrative? Overblown. But what’s true is that hybrid sales models are now dominant – with over 67% of distributors blending inside, outside, and digital sales.

This hybrid model reflects shifting buyer behavior. Customers want to talk to reps when the stakes are high – like during product selection or configuration – but they also want the convenience of online reorders and self-service for simple tasks.

From what I saw at Shift, the top-performing companies are laser-focused on redefining roles and responsibilities across sales channels. They’re using customer segmentation data to allocate high-touch resources to high-value accounts and streamlining the rest.

What does this mean for your org?

• Rethink how inside sales supports top-line growth – not just fulfillment.
• Give your digital tools a real seat at the table, not just a back-office function.
• Train your reps on how to sell together across the sales org, not compete for territory.

One of the most urgent themes of the event: AI is not a spectator sport.

Distributors no longer have the luxury of waiting on the sidelines. The most tangible, short-term opportunities discussed at Shift include:

• Order intake automation: Using AI to process purchase orders from unstructured formats like email, PDF, or even mobile photos. One panelist shared that their team cut manual entry time by 60% just by automating PO capture and routing.
• AI-powered CPQ (Configure, Price, Quote): Tools that automate quote generation based on historical data, available inventory, and contract pricing. This is expected to become widespread within 12–18 months.
• Forecasting and demand planning: Leveraging AI models to spot customer churn risk or anticipate slow-moving inventory before it hits your bottom line.

The mindset shift here is key: don’t wait for a 12-month transformation plan. Start with snackable, high-impact projects that deliver value in weeks – not quarters.

As Chip Hornsby, Executive Chairman of Reece USA put it: “Doing nothing is not an option.”

The Other Side of the AI Coin: Risk & Responsibility

For all the enthusiasm, there was a grounded discussion around AI’s danger zones: poor model selection, lack of data governance, cybersecurity risks, and – perhaps most critically – damaging company culture.

There’s a fine line between efficiency and alienation. Implementing AI tools without transparency or employee buy-in can erode trust. The challenge for leadership is to drive productivity without breaking your culture.

That means:

• Being honest about where AI is being used
• Involving end users in pilot testing
• Choosing tools that enhance, not replace, frontline talent

Culture, Retention & the Frontline Talent Crisis

You can’t talk about transformation without addressing the human side of the business. One stat from McKinsey stopped me in my tracks: 42% of frontline distribution workers are considering leaving their job within the next 3-6 months.

Why? Burnout. Poor communication. Lack of growth paths. And frankly, feeling undervalued.

Winning organizations are flipping that script. They’re building cultures anchored in purpose, not perks. They’re aligning their leadership principles around trust, consistency, and clarity. And they’re over-communicating during times of change.

If you’re rolling out new tools, changing sales comp plans, or shifting service models – make sure your team feels informed, involved, and invested.

Final Thoughts: What Smart Distributors Are Prioritizing

The distributors pulling ahead right now aren’t necessarily the biggest. They’re the ones that are:

• Growing through value-added services, not just volume
• Embracing hybrid sales models to match how customers want to buy
• Starting fast with AI projects that improve margins and workflows
• Leading with clear purpose to retain and energize their teams

One quote from the event – from Teesee Murray of Turtle – stuck with me:
“Focus on what we should do now, what we should do next, and what we should do later… and we usually never get to the ‘do later’ things.”

Let’s stop waiting to get to “later.” The opportunity is right now.

If you were at Shift, I’d love to hear what stood out to you – and if you weren’t, I hope this gave you a front-row seat to where the industry is headed.