Digitizing Distribution in India: What's Working and What’s Not

In an exclusive interaction with Media Infotainment, Vinayak Gupta, President of Softworld, shares insights on how India’s distributors are navigating digital transformation. While many small and medium players still use technology mainly for billing and accounting, the growing influence of B2B e-commerce is making real-time inventory visibility and ERP integration inevitable. He highlights how IoT and AI are reshaping operations, improving forecasting, and enhancing customer relationships, while also pointing to opportunities in quick commerce-inspired models, data-driven decision-making, and AI-powered back-office automation to drive the sector’s future growth.

How are distributors in India currently adopting digitaltools, and what factors are driving or slowing this transition? 

Most small and medium distributors are still using technology only for billing and accounting. A few have started using tablets for warehouse operations, but the real push is coming from e-commerce. As B2B e-commerce grows, distributors are realizing that visibility and real-time inventory access are not optional anymore. I believe the future lies in full ERP and e-commerce integrations, where inventory is instantly accessible online.

Which emerging technologies—AI, IoT, blockchain, or others—are proving mostimpactful in streamlining distribution in India? 

IoT and AI are the real game changers. IoT helps create real-time visibility in operations, though it still feels overwhelming for many businesses. AI, on the other hand, is becoming more accessible every day. Once it is tailored to business use cases, it can act like an accountant, an advisor for purchase planning, or even automate back-office tasks. The impact will be huge as AI becomes easier to adopt for smaller companies. 

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How has digitization improved inventory tracking, demand forecasting, and real-time decision-making for distributors?

Inventory tracking has improved a lot. Today, businesses can monitor every detail and even automate parts of their purchase planning to maximize margins and reduce stock-outs. That said, most systems still rely on linear sales trends and struggle with sudden shifts like seasonal dips or pandemic-level surges. This is where the next wave of smarter forecasting needs to happen. 

In what ways is digitaltransformation changing relationships with retailers, dealers, and end customers in the Indian market? 

For customers, everything is now about convenience through mobile apps, digital payments, and quick deliveries. Quick commerce has changed expectations in Tier 1 and Tier 2 cities, where people can get almost anything at their doorstep in 20 minutes. Traditional retailers and distributors cannot ignore this anymore. They need their own digital tools, loyalty programs, and last-mile delivery partners to stay relevant. Quick commerce is here to stay and it will likely take at least 20 percent of the market share.

Also Read: Cost Optimization, Productivity, and Streamlined Operations in a Digital Era

Where do you see the biggest opportunities for innovation in India’s distribution sector over the next few years, and what gaps still need to be addressed?

The depth of technology adoption needs to grow. Data-driven decisions can reduce excess inventory, improve customer service, and prevent stock-outs. Distributors should replicate parts of quick commerce in B2B, such as faster delivery, better credit support, and discounts. We will also see more consolidation so distributors can secure higher margins and stronger supply from manufacturers. Most importantly, software cannot just be an accounting tool anymore; it has to be at the core of business strategy. With AI entering workflows, the opportunity is to cut costs in the back office while improving the quality of service at the front.