Wholesale distribution in the security industry has entered a new chapter. Gone are the days when local supply houses simply served as convenient pickup points for integrators needing a fire panel or a replacement camera.
Today’s distributors must operate at the intersection of logistics, technology and consultative service. Their role has evolved dramatically, driven by e-commerce, platform integrations, the expansion of smart home and AV categories, and increasingly demanding expectations from both integrators and end-users.
To understand the contours of this shifting landscape, Security Business gathered a roundtable of senior executives from leading wholesale distribution organizations, including ADI Global, AlarMax, PowerHouse Alliance, SS&Si Dealer Network, and Wesco.
Their collective insight reveals a market in the midst of transformation – and one that’s full of both disruption and opportunity.
Hybrid Model: Brick-and-Mortar and E-Commerce
At the center of this evolution lies a balance between physical and digital service channels. While e-commerce is essential, the enduring value of brick-and-mortar locations should not be underestimated.
“All of this talk about the Amazon-type model – it absolutely has a place,” says Allie Copeland, Chief Transformation Officer at ADI Global. “But I also think that brick-and-mortar is here to stay in distribution in a lot of ways, because we find there’s a need for it.”
ADI, she notes, has heavily invested in digital infrastructure. “We’ve got a great mobile app, and we’ve done a ton of investment there. We can get it shipped to you within two days from any of our distribution centers in the Americas. We can give you that experience today or a courier service from our stores.”
Still, many customers continue to rely on the immediacy and reliability of local branches – a trend that remained steady even during the height of the pandemic. “What we’ve found – and this was especially evident during COVID – is that the ratio of customers who pick up orders in-store vs. those who choose to ship hasn’t shifted much,” Copeland says. “Maybe there was a slight increase in shipping, but it was minimal – about 200 basis points at most. Even now, many customers place orders online but still prefer to visit a local branch. That tells us the role of brick-and-mortar isn’t going away anytime soon.”
She adds that this kind of access can be especially critical in urgent scenarios. “If something goes wrong with your fire panel and you have to get it up, you don’t necessarily want to hear that it could take six hours, or you’ll get it tomorrow at 7 a.m. I have to assume you want that fixed now or something put in place now.”
AlarMax is among the distributors that have taken steps to bridge the digital and physical experience. In Nov. 2024, the company launched its first e-commerce platform, offering around-the-clock access to online ordering and real-time inventory visibility.
“Launching an e-commerce platform has been a new step for us...because the market demands it,” says company President Scott Shelander. “Today’s [integrators] expect quick online ordering, immediate access to inventory, and a convenient way to manage transactions around the clock.”
Shelander emphasizes that the new platform complements local branches, and adds that physical branches remain core to the company.
“There’s value in seeing products firsthand, and speaking with experts,” he says. “Same-day pickup, immediate product substitutions, and hands-on troubleshooting are advantages you just can’t replicate online.”
Adds Dennis Holzer, Executive Director of PowerHouse Alliance: “Perhaps more than ever, local hubs ensure faster access to inventory, real-time troubleshooting, and face-to-face training opportunities that are critical for successful installations,” he says.
Jake Voll, President of SS&Si Dealer Network, adds nuance: “Order pickup from local branches often creates more inefficiency than value. A technician driving 30 minutes to pick up gear – and then waiting another 30 minutes – isn’t doing revenue-generating work.”
SS&Si has focused instead on reliable shipping to offices and job sites, which Voll says reduces friction and helps integrators work smarter.
Tara Dunning, VP of Global Security and Infrastructure Sales and Strategy at Wesco, agrees. “As we’ve seen, supply chain assurance is critical. Almost every digital solution – whether AI, a platform aggregator, or a cloud solution – is tied to physical hardware,” she says. “Brick-and-mortar distribution centers provide the peace of mind that integrators and end-users will have the hardware they need when they need it.”
Dunning also emphasizes the omnichannel aspect of today’s expectations. “Online and e-commerce platforms have changed the game and provided customers with convenience and flexibility,” she says. “But brick-and-mortar distribution centers tap into the need for a true omnichannel experience.”
The Power of Strategic Acquisitions
The evolving model has led to strategic acquisitions that blur traditional lines between distributors, manufacturers, and service providers. Last year’s acquisition of Snap One by Resideo, ADI’s parent company, is a recent example. Originally a digital-native AV product and platform company, Snap One had already begun investing in physical retail locations before the acquisition.
“They were up to 44 locations, and our acquisition instantly brings them another 60-plus locations – some in markets they were aggressively looking to get into,” Copeland explains.
The combination created a new distribution branch model integrating AV and security experts under the same roof, adding bulkier smart home and networking products in a showroom-style experience.
Wesco has also played a significant role in reshaping the distribution landscape through strategic acquisitions. In 2020, the company brought Anixter and Tri-Ed under its umbrella – positioning it as a more comprehensive solutions provider in the wholesale distribution industry.
Distributors as Strategic Business Partners
Dunning believes the distributor’s role has shifted from transactional supplier to strategic business partner. “As e-commerce has become more prevalent, it has meant that distributors need to be more than just suppliers,” she says. “Customers now expect product access, support, and data-driven insights to help them achieve their desired outcomes.”
This is especially critical as security systems become more complex. “These complex solutions require all the components – cameras, sensors, servers, cloud applications, even the cabling – to work together in lockstep to function successfully,” Dunning explains. “This complexity creates an opportunity for the industry to come together to understand those challenges and create more simplified, streamlined solutions for end-users.”
She points to the need for intelligent platform aggregation, which enables integrators and end-users to manage licensing, firmware updates, and even hardware lifecycle planning more effectively.
“As-a-service models can take the burden of managing updates off the integrator and end-user,” Dunning says. “The distributor manages that component, and when the hardware reaches the end of its lifecycle, it is replaced.”
Services That Go Beyond the Sale
Distributors are increasingly judged by their value-added services. As Voll notes, “Integrators value speed, simplicity, and solutions that help them differentiate.”
At Wesco, Dunning outlines three categories of essential services: Technology/advisory services, labor-saving services, and supply chain or logistics services.
She says even seasoned integrators may not be familiar with the full potential of emerging tech like AI and the cloud. “Technology and advisory services can help integrators ensure they are up to speed on the latest trends and how to talk to their customers about key trends,” Dunning says.
Labor-saving services are also gaining popularity as integrators try to make the most of limited manpower.
“Installation enhancement solutions can help maximize labor efficiency by having the distributor perform material organization, basic assembly, and other low-skill tasks off-site,” Dunning explains. “Additionally, leading distributors today are offering project staging, kitting, labeling, testing, and other services that help improve overall labor efficiency at the jobsite.”
The Training Imperative
Distributors that once saw training and support as bonus features now find them to be essential. Holzer notes that training, tech support and project guidance have “become expectations.”
Dunning agrees: “They are now table stakes. Time is a security integrator’s most valuable resource. These services remove a lot of this burden.”
Wesco provides hands-on and digital training options, technical resources, white- papers, and guides tailored to integrators navigating new technologies. “Distributors can provide tailored trainings – both on-site or online – as well as whitepapers, technical guides, and other helpful resources that can help integrators expand their offerings,” Dunning says.
Copeland echoes that the in-person touch remains critical. “You can come to an [ADI Expo] and in one day meet all the requirements that those technicians need for a year,” she says. “Not all of the field technicians and folks who work in our industry get to [attend big shows], so the more that we can bring that to them, the better educated they are going to be.”
Differentiation Via Trusted Partnership
The competitive landscape for wholesale distributors is more fragmented than ever, with integrators able to purchase directly from manufacturers or anonymous online retailers; however, every executive on the roundtable agrees that service is the great differentiator.
“When a dealer calls AlarMax, they speak with someone who knows their business, their market, and their priorities,” Shelander says. “We’re not here to push one product; we’re here to recommend the best fit and make sure it gets there on time.”
Dunning expands on this idea, emphasizing that distributors must help integrators move beyond selling point solutions to delivering measurable business outcomes.
“In a world where technology drives every interaction, integrators are looking for partners who can empower them to enhance their security offerings – both physical and digital – streamline operations and achieve measurable outcomes,” she says.
Voll highlights the importance of helping integrators build their own brand identity. “You can buy a product anywhere, but you can’t get your logo printed on it anywhere,” he says. “We offer white-label services that make the dealer the hero to the customer.”
SS&Si’s private labeling program helps dealers foster brand loyalty and remain top-of-mind with clients. “Amazon’s not printing your logo on a keypad with no minimums,” Voll continues, underscoring that these types of dealer-first services are what separate trusted distributors from faceless suppliers.
Holzer adds that differentiation comes not only from services but from trusted, personalized relationships. “It is not just about availability; it is about having someone who knows your past orders, understands your market, and can step in to offer solutions without delay,” he says.
Choose a Partner, Not a Vendor
As the complexity of projects increases and customer expectations evolve, selecting the right distribution partner is no longer just a logistical decision for integrators; it is a strategic one. Against a backdrop of rapid industry transformation – fueled by emerging technologies, shifting customer expectations, and new service models – the strength of that partnership can be the difference between stagnation and scalable growth.
