Wholesale distributors are preparing for substantial changes to their inventory strategies in 2026, driven by economic uncertainty and heightened competition, according to Phocas Software's inaugural 2026 Inventory Trends in Wholesale Distribution report. The study, which polled over 100 global distribution professionals, found that 54% anticipate implementing a new demand forecasting methodology next year. This indicates a trend towards more accurate, data-informed inventory management. Furthermore, 45% of distributors plan to boost data and warehouse automation, while one-third intend to enhance product and customer segmentation. Thirty-one percent expect to revise their safety stock levels. These strategic shifts are a direct reaction to a market where distributors identify economic uncertainty as their primary challenge, closely followed by increased competition. "Demand planning is a fundamental requirement for distributors, yet the industry struggles with an accuracy deficit due to restricted access to appropriate data," stated Phocas CEO Myles Glashier in a press release. "Distributors who can maintain up-to-date planning aligned with current sales are reducing inventory expenses and elevating service standards." Seventy percent of surveyed distributors manage over 5,000 Stock Keeping Units (SKUs), and many collaborate with more than 50 suppliers. The smaller proportion of distributors reporting a "very accurate" demand planning process are experiencing considerable advantages, including lower inventory costs.