Phocas expands distribution intelligence with embedded AI in Analytics to accelerate decisions

Phocas Software launched Workspaces in its Analytics platform, advancing its strategy to bring industry-specific AI into the decisions distributors make across sales, finance and operations.

Powered by the Phocas Agentic and Conversational Engine (PACE), Workspaces combines conversational AI with the company’s established data platform and 25 years of distribution expertise. People can ask complex business questions in everyday language, investigate what drives performance changes, verify answers against underlying transactions, and share results all in the same platform.

The launch extends Phocas’ distribution intelligence capabilities and supports a broader development program spanning AI-assisted recommendations and task automation.

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The launch comes as distributors increasingly invest in AI but struggle to realize its value. The Phocas State of Sales in Distribution research found 49% of distributors are already using generic AI in sales, yet only 33% say it’s delivering high impact.

Unlike general-purpose AI tools, Workspaces is designed specifically around the needs of the distribution sector. The embedded AI matches the industry’s data patterns and workflows.

For example, a branch manager investigating declining sales can identify which customers or products are contributing to the change, ask follow-up questions, and review the underlying transactions without switching between reports or systems.

“Distributors lose money when margin declines go unexplained or changes in customer buying go unnoticed,” said Myles Glashier, co-founder and CEO of Phocas Software. “The data to address these problems is available but connecting and understanding it takes time.

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“We developed Workspaces with input from distributors. Many would rather rely on industry experts who understand their business and data than build AI themselves. With Workspaces, the person closest to the problem can ask a question, investigate the answer and act sooner,” adds Glashier.

For beta customer Kai Sorenson, Director of IT at Werner Electric, having distribution data already connected in Phocas is a key advantage. “One of the biggest challenges with AI is having all the data available for the AI, so Phocas is a step ahead of everyone by having all our data there.”

Calculations run in the customer’s own Phocas data platform, and answers carry a confidence score to support review. Workspaces recognizes individual users and builds a deeper understanding of their business data as they use it.

“Distributors want AI built into the platforms they already use, so it becomes part of how they work without managing another tool,” Glashier said. “Understanding a question is one part of the job. The answer also needs to reflect how that distributor operates, how its numbers fit together and what the person asking is allowed to see.”

“We see Workspaces setting the standard in how analysis works. Sales, finance and operations can solve problems together, using insights they can all verify and share,” Glashier said.

For distributors managing multiple branches and systems, the challenge goes beyond getting a quick answer. Teams need to understand how purchasing, stock availability, customer demand and pricing affect one another and the profitability of the business.

Workspaces gives people another way into that problem solving, alongside Phocas dashboards and customizable alerts. PACE operates within Phocas’s existing security and data governance framework, including user permissions and access controls, and the wider platform undergoes annual independent SOC 2 Type 2 audits.

CUI Heat, Team Air Distributing, Inspirations Paint, Werner Electric and PIP Global Safety are among the distributors already using New Analytics and Workspaces in beta.