US wholesale sales rebounded in June, rising 0.3% to $698.5 billion after a revised 0.4% decline in May, according to the Census Bureau. Durable goods sales increased 0.5%, while nondurable goods sales rose 0.1%. Inventories grew 0.1% to $906.3 billion, marking a second consecutive monthly increase, and the inventories-to-sales ratio remained at 1.30, down from 1.35 a year earlier.
The U.S. truck freight market experienced its first quarter-over-quarter growth in three years during the second quarter, with shipment volumes rising 2.4% and spending up 1.2% compared to the first quarter, according to the U.S. Bank Freight Payment Index. Industry experts note that while the sequential gains are positive after a prolonged slump, ongoing tariff-related volatility and unevenness in key sectors mean the market's recovery may still be tentative.
As distributors grow, they may face the challenge of whether to build custom technology systems or buy off-the-shelf solutions, writes Keith Fatula, vice president of solutions engineering at DataXstream. Custom builds offer control and tailored workflows but come with significant risks and hidden costs, whereas off-the-shelf solutions are highly configurable, integrate seamlessly with existing systems, provide faster implementation, lower total cost of ownership and offer better scalability. Fatula highlights Pacific Coast Supply's switch from a stalled custom project to a packaged application, which allowed the building materials distributor to reduce unused inventory levels, increase gross margins and quickly train the customer service team on the new interface.
Businesses are increasingly partnering with third-party logistics providers to optimize material handling and enhance supply chain efficiency. 3PLs offer significant cost savings through mode consolidation and route planning, while leveraging extensive carrier networks to provide flexibility and reliability. Advanced technology from 3PLs ensures real-time visibility and risk mitigation in regulatory compliance, cargo security and supply chain disruptions.
Businesses are turning to dynamic stress testing using AI and human experts to navigate the challenges posed by shifting tariffs and trade negotiations under the Trump administration. This approach helps companies preserve profit margins and create more resilient sourcing plans amid uncertainty.
Many distributors have moved their sales processes from manual, error-prone quoting methods to AI-powered systems that integrate with ERP and CRM data to automate pricing, inventory checks and margin calculations, writes Brian Hopkins. This shift has significantly reduced the time needed to create quotes, improved accuracy and enabled sales teams to focus on higher-value interactions, which has eliminated bottlenecks and allows sales teams to focus on higher-value, customer-focused interactions, leading to larger order sizes and increased margins.
Some 52% of B2B organizations are operating with outdated ecommerce technology and their financial leaders are not involved enough in digital decision-making, per a commercetools report. Many companies face looming end-of-life deadlines for critical systems, with 52% expecting this within two years and 16% within 12 months. The urgency to modernize is amplified by ongoing economic uncertainty, making system upgrades a strategic priority for B2B firms.
US labor productivity increased at a 2.4% annualized rate in the second quarter after a 1.8% decline in the first, according to Bureau of Labor Statistics data. Unit labor costs rose 1.6% annually. Hours worked also increased, while hourly and worker compensation rose by 4% and 2.3%, respectively. The productivity gains, partly driven by technological enhancements, have the potential to help contain wage-related inflation.
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The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.
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