As we enter the third quarter of 2026, distributors find themselves at an important point in the year. The first half of the year is often spent establishing goals, launching initiatives, and responding to market changes. By Q3, the focus shifts toward execution, optimization, and ensuring the business is positioned to finish the year strong.
With continued economic uncertainty, evolving customer expectations, and growing interest in AI and automation, distributors are being challenged to do more with the resources they already have. The organizations that succeed during the second half of the year will be those that focus on operational efficiency, data-driven decision making, and continuous improvement.
Here are some of the key priorities distributors should be focusing on as they head into Q3.
Optimizing Inventory Performance
Inventory remains one of the most significant investments for distributors. Too much inventory can tie up valuable capital, while too little inventory can result in stockouts, missed sales opportunities, and dissatisfied customers.
As distributors move into the second half of the year, it is important to evaluate inventory levels, demand forecasts, and purchasing strategies. Understanding which products are moving, which are sitting, and where adjustments can be made can help improve cash flow and customer service simultaneously.
Organizations that have access to real-time inventory visibility and accurate reporting are often better positioned to make proactive decisions rather than reactive ones.
Improving Productivity Through Process Efficiency
Labor challenges continue to impact the distribution industry. While hiring remains a priority, many organizations are recognizing that productivity improvements can be achieved by removing unnecessary manual processes and streamlining workflows.
Every manual task represents an opportunity for improvement. Whether it is order entry, reporting, approvals, or customer communications, identifying repetitive activities can help teams focus on higher-value work.
This is where process visibility becomes increasingly important. Before a company can improve a process, it must first understand how work is actually moving throughout the organization.
Turning AI Interest into Business Value
Artificial intelligence continues to dominate conversations across the distribution industry. However, many organizations are moving beyond the excitement surrounding AI and asking a more practical question:
How can AI help us improve business performance?
The most successful AI initiatives are not focused on technology for technology’s sake. Instead, they focus on solving specific business challenges such as improving forecasting, automating repetitive tasks, identifying operational bottlenecks, or helping employees make faster decisions.
Organizations that have strong data foundations and well-defined processes are often best positioned to realize value from AI investments.
Preparing for Future Growth
Q3 is also an ideal time for distributors to evaluate whether their technology platforms are supporting long-term growth objectives.
Many organizations continue to rely on legacy systems that were not designed for today’s demands around automation, analytics, AI, and system integration. While these systems may still function, they can create limitations that impact scalability and efficiency.
Evaluating ERP performance, reporting capabilities, integrations, and user adoption can help identify opportunities for improvement before planning begins for the next fiscal year.
Focusing on Data Quality and Visibility
One of the biggest barriers to digital transformation is poor data quality.
Whether an organization is implementing advanced analytics, automation, AI solutions, or new reporting tools, success ultimately depends on the quality of the underlying data.
Distributors should use Q3 as an opportunity to assess data governance practices, reporting accuracy, and overall visibility into business operations. Better data leads to better decisions, and better decisions lead to stronger business outcomes.
How NSA Helps Distributors Navigate Change
At NSA Professional Services, we work with distributors every day to help them maximize the value of their ERP investments, improve operational efficiency, and prepare for the future.
Whether you’re exploring Infor CloudSuite Distribution, evaluating AI opportunities, optimizing business processes, or looking to improve visibility across your organization, our team helps distributors align technology with business goals.
As the second half of the year begins, now is the time to evaluate where your organization stands and identify the opportunities that can have the greatest impact before year-end.
The decisions made in Q3 often determine how successfully a company finishes the year and how prepared it is for the year ahead.
To learn more about how NSA can help your organization improve performance, optimize processes, and prepare for future growth, contact our team at solutions@nsacom.com.