background mask
Blog Articles

MDM SHIFT 2024 Recap: Navigating Innovation in Distribution

The first MDM SHIFT conference, held since the National Association of Wholesaler-Distributors acquired MDM in January, brought distribution leaders together earlier this month to address key challenges, learn, and network. The event offered valuable insights to help distributors rethink innovation and position themselves for long-term success.

mdm shift 2024The Intuilize team, including CEO/Founder Nelson Valderrama, Strategic Partnerships VP Jason Birch, and Sales and Marketing VP Phil Samuels, actively engaged with distributors throughout the event, participating in key sessions and discussing industry challenges. 

Attendee perspectives on the state of the industry included:

  • Flat or declining sales: Many distributors are experiencing a slowdown in demand compared to last year.

  • Labor competition: There's increasing competition for talent at all levels, from warehouse staff to management.

  • Technological overwhelm: Distributors are unsure of how to effectively integrate technologies like AI into their operations.

  • Market volatility: Distributors face frequent disruptions, which used to be cyclical but are now occurring more frequently.

  • Need for alignment: While digital tools promise improved alignment between distributors, customers, and suppliers, many are struggling to achieve this maturity.

Industry Insights From MDM SHIFT

Expert sessions, vendor presentations, and keynote addresses offered a comprehensive view of the challenges distributors are navigating today.

Key Learnings:

  • Innovation should focus on customer pain points, with an emphasis on reducing friction in processes like quoting, ordering, and returns.

  • Resource limitations often cause innovation projects to fail, whether due to a lack of time, budget, or skilled personnel.

  • AI adoption requires clear definitions. Many distributors view AI as more of a fad than a trend and need vendors to better demonstrate practical value and applications. 

  • Successful innovation requires experimentation and effective change management, not just the adoption of the latest technologies.

  • People remain the most valuable asset. Building a strong company culture and empowering teams are critical to long-term success.

Rethinking Innovation—It’s About Your Customers, Not Just Technology

A key theme echoed by many speakers was that innovation isn’t just about adopting new technology—it’s about solving real problems for customers. Reducing friction in processes such as quoting and returns can make a significant difference. 

As B2B eCommerce Strategist Jason Hein noted on LinkedIn after the event, “Real innovation excites and adds value for your customers, not just catching up with baseline expectations.”

jason hein comments

Balancing Experimentation and Practicality

MDM SHIFT sessions also emphasized the importance of strategic experimentation with new technologies. One session that resonated with the Intuilize team focused on why innovation projects often fail—typically because companies underestimate the resources, skills, and effort required. Learning from mistakes and fostering a culture of innovation through proper change management is essential.

Nick Pericle, a software consultant for the distribution industry, highlighted the misuse of tools like AI in a LinkedIn post. He explained that while AI, such as ChatGPT, can significantly improve efficiency, there’s still a lack of understanding around its real-world applications.

Nick's post received some interesting feedback as well as seen below:

mdm feedback 1

AI: A Buzzword or a Real Solution?

AI was a hot topic at the event, with many vendors promoting AI-powered solutions. However, distributors, including the Intuilize team, noted that AI often feels like a buzzword rather than a practical tool. As Jason Hein pointed out, companies frequently label their products as AI-driven without offering real value, leaving distributors feeling overwhelmed and skeptical. The consensus was clear: technology should be adopted to solve specific problems, not for its own sake.

The Power of People

Despite skepticism about technology, one optimistic theme emerged: distributors with strong teams felt more confident in navigating future challenges. As shared by ABC Supply’s president at the event, culture and people are the only sustainable advantage. Technology and products can be replicated, but a strong team cannot.

A Call for Real Innovation

The MDM SHIFT conference made it clear that the key challenges facing distributors today aren’t just about adopting the latest technology but using it strategically to drive long-term success. At the Intuilize booth, Nelson, Jason Birch, and Phil engaged with attendees about the importance of reducing friction, implementing effective change management, and building a strong company culture.

These ideas are at the heart of our whitepaper, Thriving in an Age of Disruption: Transforming Distribution with Inventory and Price Optimization. To learn more about how to master inventory and pricing strategies while navigating today’s market complexities, download our free whitepaper, which provides practical steps for balancing supply and demand, optimizing inventory, and leveraging AI to improve business performance.