Mid-sized distributors face mounting pressure to deliver faster, more accurate service with fewer resources. Customer expectations are rising, inventory costs are under pressure, and labor shortages are straining warehouses. For operations leaders, the mandate to improve warehouse performance is clear. The challenge lies in how to do it.
Digital transformation, starting with the implementation of a modern warehouse management system (WMS), offers a proven solution.
Contrary to outdated perceptions, digital transformation is no longer the domain of massive enterprises with expansive IT budgets. More mid-sized distributors are adopting targeted tools that eliminate guesswork and manual inefficiencies. Paperless receiving, mobile picking and real-time inventory visibility enable teams to boost productivity, even amid labor constraints.
Simplifying complexity with targeted digital solutions
Even modest improvements from a modern WMS, like guided putaway or scan-based picking, can yield significant efficiency gains without a full-scale overhaul of legacy systems. These solutions integrate with existing ERPs and are increasingly designed for fast deployment and ease of use, reducing both disruption and implementation risk.
The impact is measurable. According to McKinsey, companies that digitize their supply chains can see up to a 30% increase in operational efficiency and a 20% drop in logistics costs. These gains are clear in warehouses where automation reduces errors, improves consistency and gives teams the data they need to manage performance. They also reveal hidden costs in manual operations, like extra labor spent fixing errors or walking inefficient pick paths — all of which quietly erode margin.
Deloitte reports that real-time supply chain visibility alone can drive over a 20% improvement in order fulfillment — a critical edge when service quality and cost control go hand in hand. Yet many warehouses still run on printed pick lists, static spreadsheets and employee memory. This creates inconsistency and slows productivity. Without system-driven workflows, staff spend more time in transit, errors multiply and visibility breaks down. For these warehouses, decision-making remains reactive rather than proactive. Leaders struggle to spot bottlenecks, predict shortages or respond to demand shifts until issues have already surfaced.
Building resilience with smarter warehouse operations
Labor remains a challenge. Automation enhances human capability by reducing repetitive tasks and refocusing workers on value-added activity. Even simple changes like digitizing cycle counts can improve inventory accuracy while reclaiming hours each week. Done well, automation strengthens productivity and job satisfaction while helping distributors retain hard-to-find talent. It also makes seasonal and temporary labor easier to manage by simplifying training and reducing guesswork.
Consider Werner Electric Supply, a Midwestern distributor serving industrial, commercial and construction customers with electrical and automation products. The company re-tooled its warehouse operations and implemented a WMS to eliminate manual bottlenecks and increase visibility. With focused process changes and tighter inventory control, Werner Electric Supply achieved 99.9% order accuracy and cleared its warehouse backlog. Inventory turns and fill rates also rose — not from sweeping transformation, but from a series of focused, operationally grounded improvements.
Customer expectations are rising fast — even for distributors not competing directly with e-commerce giants. Same-day shipping, accurate ETAs and smooth returns are now standard, and the ability to adapt has become a baseline requirement. To keep up, distributors need to modernize how their warehouses operate. Gartner found that during COVID-related disruptions, companies with digitally advanced supply chains grew revenue at twice the rate of those without.
Success in automation depends on more than software. Leading distributors approach warehouse technology as a foundation for continuous improvement. Post go-live, the data captured can drive smarter slotting, more efficient labor allocation and tighter order grouping. These incremental gains add up fast, allowing companies to grow without scaling headcount.
Ultimately, a modern WMS provides teams with the tools to deliver consistently, efficiently and competitively. In a market that demands speed, accuracy and adaptability, forward-looking distributors are building the capabilities they need to stay ahead through digital supply chain transformation.
Want to see these results in action? See how Werner Electric Supply achieved near-perfect accuracy and eliminated warehouse backlog in this video.