COSTA MESA, Calif., March 05, 2026 (GLOBE NEWSWIRE) — Phocas, a leading Business Intelligence and Financial Planning & Analysis (BI and FP&A) platform for distributors in the middle-market, announces the release of its first annual 2026 Inventory Trends in Wholesale Distribution Report.
Derived from a global survey of over 100 wholesale distributors, the report highlights current strategies being used to cope in a rapidly evolving trading environment. While fundamentals like demand and lead time remain constant, the swift disruption of external market conditions requires a flexible approach to inventory management.
A tactical way to optimize cash flow, enhance supplier relationships and steer sustainable growth, inventory management is now a core strategic lever across the industry. Distributors are reacting to greater competition and economic volatility by holding more stock. This move is largely driven by the need to retain customers. This trend shows a re-evaluation of traditional inventory management systems – for now – in response to tariffs and supply chain delays.
“Inventory management can be siloed in a distribution company. To do it well, the purchasing team needs to work closely with sales and finance so they can move with the market,” says Myles Glashier, CEO and Co-Founder of Phocas.
When asked what capabilities they want to enhance or add this year, wholesalers advised demand planning and more data and warehouse automation, alongside customer and product segmentation. These adjustments mirror the increasing complexity of the wholesale sector and requirement for data-driven decision-making.
“Demand planning is a core need for distributors, yet the industry faces an accuracy gap due to limited access to the right data. Distributors that can keep planning up-to-date with current sales are lowering the cost of inventory and improving service levels,” adds Glashier.Key report insights:
- Competitive pressure is increasing supply chain complexity
- Distributors cite economic uncertainty as the most impactful challenge, with competition closely trailing.
- 70% are tasked with managing over 5,000 SKUs, engaging with over 50 suppliers.
- Boosting efficiency stands as the top priority.
- Inventory strategies are adapting to economic uncertainty
- 54% want new demand planning techniques, while 45% are embedding more data-driven and automated warehouse solutions.
- A surge in customer and product segmentation is observed among 33%, while safety stock adjustments are reported by 31%.
- Stock availability is being prioritized over cashflow
- 26% report 6-10% in deadstock, linked to over 90 days of stock held by 22%.
- Six in ten distributors believe sales are compromised when they have inadequate stock.
- Demand planning is the #1 performance differentiator
- 14% have witnessed increased revenue; 34% have curtailed inventory costs.
- Enhanced service levels are recognized by 24%; better supplier terms by 12%.
- Trusted data is resulting in better supplier performance
- Confidence in inventory data is high among 31%, with 87% acknowledging improved supplier management.
- Data sharing with suppliers improves lead time accuracy (9%) and fosters joint planning (8%).
Glashier emphasizes the importance of collaborative inventory management, stating, “Our latest report is designed to empower distributors by sharing insight from the industry on current conditions. With over 20 years of experience serving wholesale distributors, our commitment remains steadfast in providing clarity amidst industry changes. We aim to give distributors practical benchmarks, so they can compare their own operations and identify opportunities for improvement.
Get the full 2026 Inventory Trends in Wholesale Distribution Report, available for immediate download here.
About Phocas
Founded in 2001, Phocas is a leading Business Intelligence and Financial Planning & Analysis (BI and FP&A) platform for the middle-market. The company supports over 2,900 customers and 48,000 users globally to connect, understand and plan better together. Its technology is designed to help manufacturers, distributors and retailers explore data their way, so they can work more efficiently across analytics, rebates, budgets and forecasts and financial statements. An all-in-one platform for BI and FP&A connects everyone with the information they need, when they need it. Phocas makes people feel good about data. Accredited as a B Corp in 2022, Phocas has offices in Costa Mesa, Reno, Sydney, Melbourne, Coventry and Christchurch.
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