Distributors Are Pivoting Like Pro—In 2025
Today, Sage, the reigning champ of cloud‑based business management, drops its latest study—together with IDG—to show how distributors are reshaping their strategies to survive, transform and thrive in a world full of twists and turns.
What the Data Says
- Customer Service & Experience – 39% of distributors are dialing up their service game to keep customers happy.
- Cloud‑Based Apps – 37% are investing in the cloud to streamline operations and stay agile.
- E‑Commerce – 36% are sharpening online sales sites to capture more clicks.
Key Takeaway
In short: Adaptation is the new survival plan. Distributors who’re embracing tech and top‑notch customer care are the ones turning competition into opportunity.
Leveraging cloud technology to prepare for the future
Digital Transformation Takeover
Picture this: almost 80 % of distributors have carved out a digital‑transformation strategy, yet they’re still grappling with the classic trouble‑maker—implementation. Nine out of ten say it’s a cost‑heavy, expertise‑laden challenge. Sound familiar? It’s the age‑old villain of tech adoption.
The Big Numbers
- 9 in 10 distributors admit flipping the switch to new tech is a headache.
- They need real‑time data to keep supply chains humming and to predict the future, and tech is the hero they’ve sworn to.
Cloud is the Place
- 42 % call themselves early cloud adopters.
- Another 22 % shine as innovators.
- Superfact: most core business apps now run on public cloud services managed by third‑party providers.
Automation & IoT Powers
- Robotic Process Automation (RPA) is in at a staggering 81 %—robotic arms of the next‑gen workflow.
- Internet of Things (IoT) has a 75 % adoption rate, turning shelves into smart ecosystems.
Taxing Gains
- Cost reductions hit 45 %, because automated processes and cloud move the needle.
- Faster delivery climbs to 42 %, thanks to smoother logistics.
- Enhanced data security spikes to 45 %, humbly reminding us security isn’t just a perk.
- Customer service & experience sees a sweetening of 39 %—customers feel the love.
Bottom line? Distributors are desperate for efficiency, and they’re spilling the digital beans. Luckily, the cloud, RPA, and IoT are here to keep them rolling—one byte, one robot, and one smart sensor at a time.
The green agenda
Why Distributors Are Going Green (and Profitably)
In today’s eco‑savvy world, 75% of distributors worldwide have jumped on the circular economy bandwagon. They’re not just saving the planet—new tech, buzzing consumer demand, and tightening regulations are pumping up their green credentials.
What’s Prompting the Shift?
- Cutting the carbon footprint – 39% say it’s the top motivator.
- Listening to the planet – 38% are tackling real environmental concerns.
- Boosting productivity, efficiency, and resilience – 32% are looking to outsmart the competition.
- Sharpening their competitive edge – 31% want to stand out in the market.
The Real‑World Snack‑Taste
Despite the green buzz, 74% of distributors balk at juggling sustainability with profits. The “us vs. them” friction can be tough—trying to slash waste and shrink miles with local supply chains while still keeping the bottom line happy.
Why It’s Harder Than It Looks
- Local supply chains can mean lower emissions but often cost more in setup.
- Reducing waste can necessitate “new”
materials or processes that demand capital. - Customer demands for greener options can drive price hikes that
not all buyers are ready to accept.
Bottom Line: A Balancing Act!
Distributors are walking a tightrope: green goals vs. profitability. Yet, those who master this dance can enjoy the sweet spot of reduced costs, happier customers, and a cleaner planet. The future of distribution? It’s going to be a mix of breathe‑and‑earn and keep the business thriving.
Transforming business with data-centric servitisation
Distributors and the Rise of Servitisation
More than half of distribution companies are swapping pure product selling for a broader service approach. Roughly 57% are already halfway through a moderate transformation, while 28% are shouting from the rooftops that they’re in the final stretch. The result? A fresh, profitable way to hook customers with services that go beyond the standard “hand over the goods” ritual.
What’s the secret sauce?
- Credit financing (73%) – Picture this: a distributor takes the reins of a product or raw material right away, then gives the buyer the luxury of paying over months. Instant ownership, extended payment – it’s a win‑win that keeps the cash flow humming.
- Data‑driven decisions – as customers’ expectations evolve, distributors are increasingly turning to rigorous data analysis to figure out what makes the next big thing tick.
- Partnering with tech firms – door‑to‑door, tablet‑to‑tablet, they’re tapping into digital platforms to mash up diverse data sources. The end goal? A clearer, sharper picture of customer desires and market shifts.
Inside the Conversation
Rob Sinfield, VP Product: “The distribution landscape is in a constant state of flux. We’ve proven our mettle by shifting gears and tackling macro‑economic twists. What we’re seeing is recruiters making use of AI, IoT, and analytics to turbo‑charge operations. They’re building nimble supply chains, meeting the demand for sustainability, and sprinting toward circular economies and servitisation models.”
Jessica Groopman, Analyst at Kaleido Insights: “Digital transformation isn’t a one‑off bang. It’s a cultural pivot, a technological makeover, and an operational overhaul all rolled into one. Think of RPA, IoT, and AI – when they intersect, that’s where the real gold mine is. For distributors, and across the entire value chain, the future is rich with possibilities.”
Why It Matters
Imagine a world where a warehouse isn’t just a storage unit but a service hub – offering maintenance, quick-upgrades, or predictive analytics about your inventory. That’s the future of servitisation, and it’s already happening. The key takeaway? The ability to serve in a flexible, data‑driven way is becoming a competitive edge every single distributor should own.
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