Must Read | The State Of Innovation 2026 92 • SEPTEMBER 2026 • TABLE 6: How does your firm ensure compliance with relevant IT governance and data protection regulations? Audits Data Protection Officer Employee Training Software Other Distributors $100M+ 88% 88% 100% 75% 13% Distributors $25M-$100M 71% 67% 96% 54% 13% Distributors $10M-$25M 83% 75% 94% 56% 19% Distributors $3M-$10M 60% 52% 84% 48% 20% Distributors Under $3M 21% 39% 50% 39% 21% TABLE 7: Does your firm have a formal digital transformation strategy? Yes, Documented Yes, Undocumented In Development No Distributors $100M+ 81% 13% 0% 6% Distributors $25M-$100M 61% 31% 6% 3% Distributors $10M-$25M 48% 36% 8% 8% Distributors $3M-$10M 28% 28% 24% 20% Distributors Under $3M 3% 23% 27% 47% TABLE 8: % of total revenue allocated toward IT Distributors $100M+ 5% Distributors $25M-$100M 6% Distributors $10M-$25M 5% Distributors $3M-$10M 12% Distributors Under $3M 9% Similar to suppliers, most distributors rely upon employee training to ensure compliance with relevant IT governance and data protection regulations. Rector wasn’t surprised to see strong adoption of ERP systems, AI and other digital platforms because they’ve become table stakes, especially for distributors serving enterprise clients. What did stand out was that fewer than half of respondents have a documented digital transformation strategy. “That tells me many companies are investing in technology tactically rather than strategically,” Rector says. “At Thumbprint, we’ve approached technology as a business strategy, not as an IT initiative. Every investment starts with one question: How do we make it easier for our clients to do business with us? Whether it’s AI, automation, integrated ordering platforms or real-time inventory visibility, the objective is always the same: Remove complexity, improve the customer experience and allow our people to focus on higher-value work.” Akran has recently hired three full-time developers focused on filling the gaps in existing systems and creating entirely new systems where off-the-shelf solutions don’t meet its standards, Agarwal says. “In an industry where we all have the same services, suppliers and products, tech is what will truly set us apart,” he says. “We’ve completely pivoted to being a tech-first distributorship, constantly asking ourselves, ‘How can we absolutely best serve our clients?’ and developing tech-first solutions to meet those needs.”
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