Articles Tagged with ''inventory management''

Wholesale distribution has always operated on relatively thin margins. Public benchmarks typically place gross margins anywhere from the high single digits to the low-30% range depending on product mix, with net margins often falling between 3% and 10%. In plumbing and PVF, those margins vary even more dramatically by category — with commodity products leaving far less room for error than engineered or value-added offerings.

In this episode of And So It Flows, Jennifer Harrison and Kaytee Gray from SupplyHouse.com discuss how digital merchandising and fulfillment are evolving to empower contractors with expert product information, simplifying decision-making in the field.

Distributors must constantly adjust due to pricing volatility, supply-chain disruptions, labor shortages, inflation, and shifting customer expectations, tightening decision timelines. In November, five distributors met at ASA NETWORK in Fort Lauderdale, Fla., for Supply House Times’ 16th annual distributor roundtable to assess the market and discuss future success.

The warehousing industry faces a significant labor issue, accounting for 50% to 70% of total budgets, as noted by a Bostontec study. Manual order picking is a major expense, comprising around half of warehouse operating costs. Factors such as rising hiring costs, a shrinking labor pool, and the demanding nature of the work contribute to this problem. In 2023, the industry reported 4.7 nonfatal injuries and illnesses per 100 full-time workers (BLS).

According to the American Supply Association’s most recent sales report, industrywide wholesale trade in mid-2025 was up just over six percent year-over-year, while inventories climbed a modest 1.3%. That balance suggests something healthy — not overheated, but steady growth with wholesalers staying disciplined on stock levels. In other words, people are buying smart.

When warehouse processes are undocumented, what you're really doing is leaving execution up to chance. One shift might put away inventory one way, and the next shift another. One person picks using the RF gun menu, the other just memorizes where things are. When it works, it’s luck. When it fails, it’s chaos.

For smaller independents, designing one isn’t about handing it off to a slick firm; it’s about you being in the trenches, plotting layout, flow, and how people and machines coexist.

For distributors, inventory is the largest balance sheet item and can be a liability if not managed strictly. Achieving over 99% bin-level accuracy is attainable with departmental alignment, solid processes, and strong leadership. Here’s why it matters, the consequences of failure, and how to succeed.

Here are four strategies to maximize your inventory investment.