Even if you sell similar or the same products as your competitors, how you conduct your business is a point of differentiation. This reality creates problems with off-the-shelf software because one size does not fit all in distribution.
I’m thinking of our client — let’s call him Bob. He’s a seasoned leader at leveraging technology for competitive advantage. Bob recently told me the story of a pivotal moment when his mid-market distribution company struggled to scale. As they grew, the rigid functionality of the company’s off-the-shelf ERP system couldn’t accommodate the nuances of their unique workflows.
Like a bug hitting a lightbulb, the company kept running up against the limitations of the technologies they had invested in. While their business model made them successful, they were continually forced to conform to technology that didn't understand it.
It's a sentiment we've heard before, and it's the reason we believe that while every business exists because of its differences, technology has historically underserved those differences.
The best tech stacks in distribution have a strong layer of customization. For distributors, the question isn't whether to customize — it's where and how to use technology to amplify their strengths without overcomplicating operations.
Off-the-shelf software solutions (many now equipped with AI features) were designed to meet broad, common use cases, making them relatively quick to implement. Most of these are cloud-based software as a service (SaaS) subscription models, which are highly cost-effective. For many distributors, these democratized tools provide a solid foundation —reliably handling everything from inventory management to CRM workflows.
But, as Bob pointed out, these large software packages were built to handle widespread use cases for the masses. But it’s the customization of these technologies that allows distributors to outcompete.
Wherever your technology ends but your company’s specialty continues, customization will benefit those areas. The key is balancing using standardized tools for efficiency and strategically customizing where it matters most.
Distributors often face challenges with one-size-fits-all solutions. When forced to adapt to a business's intricacies, these tools can create inefficiencies, especially for larger distributors.
Consider a distributor known for its innovative supply chain processes. Their success hinged on a proprietary algorithm for demand forecasting, which was impossible to replicate using off-the-shelf software. Customizing a solution around this algorithm allowed them to protect and scale their competitive edge.
Customization enables businesses to:
The best distribution tech stacks have a strong layer of customization. However, this doesn’t mean abandoning standardized tools like ERPs and CRMs. Instead, customization should enhance these systems, filling in the gaps where they fall short.
Take these steps to strike the right balance between off-the-shelf and customization:
What should you look for in a partner? Learn what you need to know.
The best tech stacks don’t just work for your business — they fuel your strategy. However, customization isn’t about reinventing the wheel; it’s about refining the parts of your business that set you apart. By tailoring your tech stack to your intellectual property, processes, and legacy knowledge, you can unlock efficiencies and innovation that generic solutions simply can’t enable. Customization builds on your foundation, bridging the gap between generic functionality and specialized needs.
ProfitOptics helps our clients bridge the gap between their technology optimization dreams and the features offered by standard SaaS products. Our approach to technology consulting and development is rooted in almost two decades of developing flexible, scalable, and fully integrated software solutions and products. Contact us today to learn how we can extend your existing technology to improve your business.
