A practical look at how distributors are using AI to move faster, gain visibility across operations, and keep pace with rising customer demands, and where it pays off first.
Most distributors have stopped asking whether to use AI and started asking where it actually pays off. For organizations running Infor CloudSuite Distribution (CSD), that conversation often starts with the operational data already flowing through the ERP. Spending is up across forecasting, fulfilment, and customer service, but the returns are uneven—and the difference usually comes down to where a distributor chooses to start.
For years, AI in distribution lived in pilot projects and conference keynotes. For distributors using Infor CloudSuite Distribution, that shift is especially important because AI can build on the data, workflows, and processes already managed within the platform. That has changed quickly.
In one multi-year industry benchmark, the share of distributors doing nothing with AI fell from roughly 62 percent in 2023 to about 29 percent in 2025, while the group using it across several parts of the business climbed to about a third.
The shift matters because it reframes the conversation: AI in distribution is less about automation for its own sake and more about keeping operations in step with the business around them.
Many distributors treat the presence of AI in their operations as the advantage, as though adopting it is what puts them ahead. The real advantage is not the technology itself, but what it does once it’s in use, such as giving the business the ability to respond faster and more accurately as order volume, SKU counts, and customer expectations rise.
For example, a distributor that forecasts demand a week sooner—or answers a customer in minutes instead of hours—wins on service without adding headcount, and this is the lens worth keeping as the use cases pile up.
The most useful way to understand AI in distribution is to look at where it already earns its place. Four areas stand out across supply chain and logistics operations:
This is the clearest win for most distributors. Within Infor CloudSuite Distribution, AI can analyze order history, seasonality, supplier trends, and demand signals to help planners forecast demand and recommend inventory decisions.
Research from McKinsey on distribution operations points to inventory reductions in the range of 20 to 30 percent, along with lower logistics and procurement costs, when AI strengthens demand planning. One building products distributor lifted fill rates by 5 to 8 percent after putting an AI-driven supply chain control tower in place.
AI capabilities complement Infor CloudSuite Distribution by helping customer service teams process orders faster, identify exceptions, and prioritize work before delays impact customers. When demand swings, it helps fulfillment teams hold service levels without scrambling, which keeps promises to customers intact during the periods that test them most.
Generative AI working alongside Infor CloudSuite Distribution can surface customer history, recommend next-best actions, and draft responses using current data. It drafts quotes, surfaces cross-sell and reorder suggestions, and handles routine post-sale questions, freeing people for the conversations that need a human.
Deloitte points to internal sales and customer service as one of the largest near-term opportunities for distributors to capture value from generative AI.
Pricing is where small improvements add up fast. When distributors use Infor CloudSuite Distribution as the operational system of record, AI can identify pricing and margin opportunities across thousands of line items far faster than manual analysis.
For all the momentum, results still lag enthusiasm. Research from MDM and NAW covering more than 400 distributors found nearly nine in ten companies active with AI in some form, yet far fewer are happy with what they are getting back. Roughly three-quarters expect meaningful value from AI, while fewer than one in five say they have actually seen it.
It all comes down to connected, trustworthy data. Infor CloudSuite Distribution gives distributors a strong operational foundation, but realizing AI’s full value still depends on data quality, governance, and consistent business processes.
Even organizations running Infor CloudSuite Distribution can struggle if data remains disconnected, poorly governed, or inconsistent across departments. Most projects break down for three reasons:
All three of these reasons are fixable, and none of them is an AI problem.
Given that gap, sequencing matters more than ambition. For distributors using Infor CloudSuite Distribution, the best AI projects usually begin inside existing operational workflows rather than as standalone initiatives. Once value is proven in one area, they expand from a win instead in phases of applying AI across the business on a single broad rollout.
The most common starting question is what data AI needs. Infor CloudSuite Distribution already captures much of the operational data AI needs—orders, inventory, purchasing, suppliers, customer activity, and financial information. The opportunity is often less about collecting more data and more about connecting, cleaning, and governing the information already inside your ERP.
The first move is making that data usable and trustworthy, not buying another tool. A focused effort to clean and connect the data you already own does more for an AI project than any single piece of software.
If you’re already running Infor CloudSuite Distribution, you may be closer to AI readiness than you think.
AI rewards distributors who know where their data and their best use cases line up. Before committing resources to implementing AI, it helps to take an honest look at what you already have and where AI would pay off soonest. For distributors using Infor CloudSuite Distribution, the best AI projects usually begin with existing business processes rather than standalone AI initiatives.
Watch AI in CloudSuite Distribution
Watch the full session with Infor experts, Nick Perry and Omar Jeelani, as they demo AI in CSD with a live procure-to-pay cycle, walk through AP invoice automation end to end, show generative AI running inside CSD, and cover the full Velocity Suite catalog, including the AI agent roadmap.
Many distributors continue to rely on Infor A+ as a stable operational foundation, but growing complexity across inventory, fulfillment, and reporting is prompting teams to assess whether existing systems still support current demands. Factors such as expanding product catalogs, faster fulfillment expectations, and increased reliance on real‑time data are driving this re‑evaluation.
Challenges often emerge gradually, such as increased manual coordination between purchasing, warehouse, and finance teams, delays in confirming inventory or order status, or difficulty aligning operational data across departments. These issues can indicate that systems were not designed to support the current level of coordination required.
Modern distribution systems are designed to provide real‑time visibility into inventory levels, order activity, purchasing status, and warehouse operations. By connecting this information within a unified environment, teams can respond more quickly to changes, identify issues earlier, and make decisions based on consistent, up‑to‑date data.
As operational complexity increases, purchasing, warehouse, sales, and finance teams depend on the same information to stay aligned. When workflows are disconnected, updates must be communicated manually, increasing delays and the risk of errors. Modern systems help reduce this friction by allowing updates in one area to flow automatically across the organization.
Automation helps streamline routine tasks such as order processing, inventory updates, and reporting. This reduces manual effort and allows teams to focus on exception management and higher‑value activities. Built‑in analytics also help leaders gain clearer insight into operational performance and trends.
Infor CloudSuite Distribution is designed to support more connected, data‑driven distribution operations by bringing purchasing, inventory, warehouse management, and financial reporting together in a single platform. This helps distributors improve visibility, reduce manual coordination, and build a more scalable foundation for future growth while leveraging existing operational knowledge.
Gary Erickson is Managing Sales Lead at Aktion, specializing in ERP transformation for distributors using Infor and Acumatica. He partners with leadership teams to navigate change, reduce risk, and turn ERP investments into platforms for business growth
