Hi, I’m Lily. Distribution has always required wrestling with unpredictability. Orders multiply, parts scatter across warehouses, and the margin for error narrows with every extra step in the chain. To combat these issues, the often applied solution was more people, more paperwork, more oversight. But the tighter the grip, the more cracks appeared.
Now, the system is learning to steady itself. AI is already embedded in workflows where delays or mistakes used to be unavoidable. AI is plugging into plants to cut downtime. Tax compliance, once a drag on margins, is being automated at scale. Operators who once asked if their systems were ready for AI are finding the real question is: are they ready to let AI run with the ball?
And yes, it’s early September. The season of “back to business” is here, budgets are being finalized, and every decision feels heavier because the year’s runway is shrinking. The turbulence won’t pause, but the smartest teams aren’t waiting for calm skies, they’re putting new engines on mid-flight.
The Future of Distribution Took Over Dallas
AI in distribution isn’t theoretical anymore, and the InstaLILY AI x SRS Distribution Inc. AI Innovation Summit proved it. We brought together CXOs, engineers, and operators across the stack in Dallas, TX to answer a single question: how do we move AI from pilot to production? The conversations weren’t abstract. They were grounded in field results, KPIs, and the urgency of transforming workflows under pressure.
AI as Teammates, Not Tools: From the opening remarks by InstaLILY’s Amit Shah and Sumo Das, to the keynote by SRS Distributions’ Cory Gundberg, the shift from systems of record to systems of action is clear.
CTOs on the Front Foot: Rajeev Rai (Ground Works), Charles D’Souza (HD Supply), and Brett Hecker (TricorBraun) put it candidly that adoption is no longer optional. The conversation has shifted from “if” to “how fast.”
Operators Demand ROI: Jeff Knapton (ITW), and Jonathan Drouin (WWEX) underscored that success means measurable outcomes. Faster quotes, cleaner data, fewer misses. Not pilots, but production.
Women in AI Leading Change: Emanuela Delgado (Partstown), Aihong Wen, Monica Kelly (SRS Distribution), and Bailey Flores (Home Depot) shared how applied AI is reshaping the culture of industrial innovation, proving it isn’t just about tools, but about who gets to shape the future.
Developers in the Loop: The hackathon proved what’s possible in hours, not months. AI teammates were built, tested, and pitched before the day ended.
The summit confirmed what we’ve been tracking in this Dispatch all summer: AI isn’t circling distribution, it has landed. And the winners will be the ones who embed AI in real workflows, at scale, right now.
What Operators Are Whispering About
Epicor Embeds Global Tax Compliance with Sovos
Global tax rules shift faster than teams can keep up. Epicor’s new tie-up with Sovos makes compliance native. Be it VAT, sales tax, or e-invoicing, they are handled inside the ERP. Just mandates managed in real time without the hassles of bolt-ons and manual risks.
Walmart Trims Waste with AI Packaging
Walmart is installing Ranpak’s AutoFill™ across five fulfillment centers. Machine vision measures every box and inserts only what’s needed. Less filler, fewer damages, faster lines, and associates off end-of-line drudgery.
Pepper Simplifies Supply with Kimelo
Pepper is folding Kimelo’s tech into its platform to take complexity out of distribution. The combined system is designed to cut the cost of routine supply orders, surface sharper sales insights, and give independent distributors’ the kind of all-in-one infrastructure usually reserved for larger competitors.
DXC Taps AI for Smarter Robots and Weld Inspection
DXC is testing adaptive robotics with Acumino for small-batch packaging and working with GreenMatterAI on weld inspection. Smarter robots and sharper quality checks mean faster adaptation and millions saved for manufacturers.
Naver and Lotte team up to build the “Agentic Enterprise”
South Korea’s retail giant Lotte is fusing with Naver’s AI to rewire operations across 15,000 stores. Four new AI agents for shopping, merchandising, operations, and management support will unify loyalty, delivery, and targeting into one system. This merge of offline scale with digital intelligence will set a new template for how retail distribution runs.
What‘s In My Ears
Cory Gundberg on the Inflection Point
In this interview, Cory Gundberg frames it simply, that companies that leverage AI will win, and companies that don’t will vanish. Still hesitant? Cory recommends starting small, learning fast, and embedding AI so your people can focus on relationships instead of paperwork.
Kent Gardner on Small Bets That Scale
Technology adoption is never easy in legacy industries, but Kent Gardner’s playbook says to “test and learn.” A reflection of his field-first leadership style, Kent believes that ideas need to come from the teams who actually sell, serve, and deliver. His mission is simple: make money, have fun, give back. And small bets in AI are how those values scale into the next chapter of growth.
Lily’s Quick Take
This week wasn’t about ideas. It was about execution.
From Dallas to distribution floors across the world, the message is clear: AI is out of beta. It’s routing orders, quoting jobs, and managing compliance, proving it can carry real workflows and not just assist them.
The companies winning right now? They’re not demoing dashboards. They’re deploying teammates.
Thank you for reading! Have feedback? Email me (Lily@instalily.ai). I am always looking to improve.
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