At this stage, it’s likely easier to compile a list of companies that aren’t exploring artificial intelligence than a roster of the ones that are.
Over the course of two-and-a-half years, the technology known as generative AI has moved from theory to reality — then from curiosity to essentially indispensable for businesses across a range of industries.
Distributors, as many have noted, are uniquely positioned to capitalize on AI’s ever-growing capabilities, and a wide range of software companies have lined up to vie for their services. One major distributor, however, did more than just add IT staff or sign a contract with a tech firm: it bought a piece of an AI startup in its own backyard.
Winsupply is one of the largest distributors in the industrial and construction segment, but it’s also one of the most unique: it offers a “family of companies.” Winsupply doesn’t simply take over the independents that it acquires; those companies, instead, take on Winsupply as, in effect, a partner — remaining the leaders of that particular subsidiary and retaining a minority ownership stake in the business itself, but with the scale and financial muscle of, at last count, a $7 billion distributor.
Three years ago – around the time ChatGPT was getting ready to turn the tech world on its head – Winsupply quietly formed a partnership of its own with a tech company in its hometown of Dayton, Ohio.
Mined XAI, a then-two-year-old startup, stemmed from a project originally undertaken by the Defense Advanced Research Projects Agency using data analytics to combat dozens of “intractable problems” for the U.S. Air Force.
Despite its military roots, MinedXAI’s data and forecasting capabilities quickly translated to the civilian sector. Today, the company offers a range of AI-enabled solutions for a wide variety of industries — but particularly for distribution: forecasting, supply chain optimization and fleet management among them.
After three years working together, Winsupply decided to do more than just partner with Mined XAI; in early March, the distributor announced that it had purchased a minority stake in the tech developer.
Just how big a stake – along with what Winsupply paid for it – was not disclosed by the companies, but Winsupply officials said that they had already seen the impact AI could have on its operations, and that Mined XAI’s “Explainable AI” solutions across supply chain, purchasing, distribution and fleet applications would only accelerate those effects.
Robert DiTommaso, who heads Winsupply’s Support Services Group, said in the announcement that the investment would keep the company “at the forefront of leveraging this transformative technology.”
Winsupply also cited its commitment to its hundreds of local companies across the U.S. for the move, along with a broader mission to “build entrepreneurs.” Company President Jeff Dice highlighted “the value this creates for the local companies, employees and shareholders.”
Winsupply and Mined XAI officials also said that they aimed to turn innovation into improved outcomes for Winsupply customers, while Mined XAI would be positioned to “drive rapid growth.”
Ryan Kramer, who founded Mined XAI after spearheading AI projects at the Air Force Research Laboratory – not to mention serving as a KC-135 crew chief in the Air Force – said that the companies were “a perfect cultural fit” despite the seemingly wide gulf between decades-old distributor and AI startup.
“Both of our teams share an entrepreneurial mindset with a strong focus on results,” Kramer, the company’s president, added in the announcement. “The trust we have cultivated over the past few years ensures we are aligned in our mission to develop XAI solutions that deliver significant value to Winsupply and the broader marketplace.”
