Majority of Distributors Planning Demand Forecasting Upgrades for 2026

Key Details Over half of wholesale distributors are overhauling their demand forecasting strategies in 2026, according to new research from Phocas Software. The survey of more than 100 distribution professionals reveals that 54% plan to adopt new forecasting approaches to gain better inventory control. Why It Matters Distributors face mounting pressure from economic uncertainty and intensifying competition. Many are struggling with demand accuracy despite managing thousands of SKUs and working with numerous suppliers. About 63% report losing sales due to inadequate stock availability. Strategic Shifts Beyond forecasting improvements, 45% of distributors plan to increase automation in data and warehouse operations. A third intend to implement better product and customer segmentation, while 31% will adjust safety stock levels. These changes reflect a shift toward more precise, data-driven inventory management. The Bottom Line Distributors with accurate demand planning processes report lower inventory costs, improved service levels, and better supplier relationships. Industry experts emphasize that keeping planning current with actual sales data is critical. Many distributors are prioritizing stock availability over cash efficiency, building extra inventory to protect against market volatility and supply chain disruptions.