January 22, 2025 • 4 minute read

Author: Phyllis Jackson, Senior Manager, US Marketing, UPS

• High-performing wholesalers provide fast, accurate and reliable fulfillment by using real-time inventory adjustments driven by retailer demand signals.
• Digital transformation fuels growth: 78% of wholesalers are adopting advanced technologies, and 65% are seeing revenue increases from digital initiatives.⁵
• Smart supply-demand alignment powered by inventory visibility, actionable insights and advanced forecasting cuts outdated stock and frees up cash flow.

Wholesalers have become fast, flexible and intelligent fulfillment partners, empowering retailers to meet the demand for rapid shipping without falling into the trap of overstocking.

This is no easy feat, particularly because stocking products has become more complex. One reason: Retailers are moving beyond broad demographic categories like “millennials” or “high-income shoppers” to focus on specific groups such as urban renters,¹ home-focused parents, social-values-driven buyers,² health-conscious professionals and social media trend followers.³ As a result, retailers need a broader range of niche products to satisfy these new microsegments.

What’s the impact? Shelves and warehouses fill up with more SKUs, each one adding to costs, complicating inventory management and raising the risk of overstock. And because these microsegments often mirror fast-changing consumer behaviors, retailers don’t have the luxury of solid historical data when trying to predict what’s next.

Wholesalers have to move as quickly as the market does, staying in sync with retail partners that are chasing ever-shifting consumer trends. The smartest players rely on a few powerful tools to reduce overstock, and still deliver fast, reliable, targeted fulfillment.
Some of the strategies they’re using include:

• On-demand inventory that dynamically adjusts stock based on real-time demand signals from retailers.
• Real-time data and integration with retailer systems, bringing inventory visibility, automated reordering and demand-driven restocking into a single, seamless flow.
• Strategically placed warehouses and distributed fulfillment centers close to key markets, making faster delivery and lower shipping costs possible while keeping inventory lean.

The stakes are real: Excess inventory and stock-outs significantly impact wholesaler and retailer performance. About 43% of companies say they lose sales when products aren’t available, while overstocking can cost up to 30% of capital, straining cash flow.⁴ Wholesalers are realizing that digital transformation pays off. Approximately 78% of businesses that have gone digital have seen growth, and 65% report higher revenue because of it.⁵

“Digitally empowered wholesalers give retailers the speed they need without the drag of excess inventory,” says Charles Cawthorn, Strategic Lead, UPS. “Through predictive analytics, real-time integration and smart logistics, they reduce supply chain friction and align supply more precisely with actual demand.”

Inventory visibility, actionable data insights and advanced forecasting can help wholesalers speed up fulfillment. By analyzing patterns and trends, wholesalers can more accurately predict demand, minimizing the risk of stock-outs and overstocking and improving fulfillment speed. Key technologies and systems involved in this strategy include:

• Inventory management systems that monitor real-time inventory levels across distribution centers and retailer shelves.
• Demand forecasting and predictive analytics technologies that use historical data, seasonality and consumer trends to forecast product demand.
• Vendor-managed inventory (VMI) platforms that let wholesalers manage inventory levels directly at the retailer’s location.
• Electronic data interchange (EDI) systems that facilitate fast and accurate automated ordering and invoicing between wholesalers and retailers.
• Supply chain visibility platforms that provide real-time logistics, inventory and transit data.

“Stockouts, overstock and the race for faster fulfillment — these are constant headaches for wholesalers and retailers," Cawthorn adds. "With a logistics partner like UPS, wholesalers and retailers can turn complex data into smart, actionable decisions.”

By embracing advanced technology, wholesalers can streamline supply chains, improve fulfillment speed and enhance customer satisfaction. While historical data provides context, real-time analytics empower dynamic forecasting and faster reactions to shifting demand. When wholesalers perform at their best, retailers gain more control and flexibility, responding more confidently to demand spikes, disruptions and fulfillment commitments.

But fostering fast fulfillment is easier said than done. A partner like UPS can help spot opportunities in your supply chain. The Customer Solutions Team can connect you with a network of more than 150 vetted third-party partners to help your business become the agile, upstream partner today’s market demands.

¹ “Eco-Conscious Tenants: How Sustainability Attracts Better Renters,” 302 Properties, May 7, 2025.
² “3 Ways Consumer Activism Is Shaping Corporate Strategies in 2025,” Investopedia, July 21, 2025.
³ “How can brands capture the loyalty of Gen Z?” Vogue Business, February 21, 2025.
⁴ “Inventory Management Software for Retailers - Case Studies and Success Stories,” MoldStud, August 11, 2024.
⁵ “Digital Transformation In The Wholesale Industry Statistics,” Gitnux, April 29, 2025.

Individual results and options will vary. UPS makes no promises of any specific outcome in this document but instead provides only example outcomes based on certain UPS customer experiences.