Expert Perspective
Preparing to Win in 2027: Three Distribution Leaders on the Year Ahead
November 12, 2026
Expert Perspective
Distributors often don’t lack strategy — they lack execution. Drawing from industry research and frontline realities, this piece outlines why good ideas stall and how leaders can close the execution gap in 2026 by prioritizing focus, process discipline and consistent action
Like many of you, I had the opportunity to attend a few distribution conferences last year, including MDM’s process-oriented SHIFT event. We heard many challenges (that we don’t control), including economic uncertainty, tariff impacts, elevated inflation, high interest rates and the burden of regulations. We also heard best practices, opportunities and advancements in distribution growth strategies, operational excellence and the promise of technology (including AI). Some of these are not new ideas and rather ones we have talked about it for a while like improving margins through better pricing. However, many distributors struggle to execute on these ideas and realize the benefits. Distributors have an “Execution Gap”.
Everybody has ideas. Ideas are cheap. Ideas are a commodity. Ideas are overrated. You can’t talk about strategies, you can’t read about it, it will not get you results. You got to do it. Execution is the differentiation. Execution creates competitive advantage. Zig Zigler said “Execution is the bridge between goals and accomplishment.” MDM’s retrospective analysis of articles in its year-end MDM Wrapped 2025 piece identified closing execution gap and getting better at execution consistency were key to operating in the slow-growth environment.
Distributors make money in three ways: (1) increasing sales, (2) decreasing costs and (3) decreasing assets. All processes, people and technology drive one or more of the above. Increasing sales is achieved through growing sales, expanding margins or expanding services. Growing sales is achieved through selling more to existing customers (and often) and finding new customers. As you can see, each of these processes can be expanded to several sub-processes that has the opportunity to impact the bottom line. There are over a hundred ways to boost profitability. The key challenge facing distributors is which process to improve, has the most potential, spend their time on and maximize ROI. Sometimes, this leads to analysis paralysis. We think we need more information, when all we really need is more action.
The rapid changes in distribution business, market conditions, entrepreneurial mindset, broken processes at the branch level, outdated technology and talent shortages have all contributed to execution gap for distributors. The distribution business has become complex. Competition is stiff and margin compression is eroding profitability. Customers expect more from distributors. It’s an opportunity. Let us make 2026 the year to close the execution gap, instill discipline, drive innovation and realize growth!
Stay Informed
News, trends, and analysis for wholesale distribution leaders. Free, everyday.
Subscribe to MDM Update