Beyond the Tech: What the Future Holds for Distribution in Digital Dentistry

Over the past few weeks, I’ve shared many of my takeaways from IDS 2025, mostly focused on the technological shifts driving change in our industry. But today, I want to shift gears and talk about something that, in my opinion, is just as important:

The evolution of the distribution model in digital dentistry.

This is a topic we don’t talk about enough. And yet, it’s central to the sustainability of suppliers, the growth of manufacturers, and the profitability of distributors.

So here’s my view—based not just on IDS, but on broader market signals from the last few years and the parallels we’ve seen in other industries.

1. We’re trading margin for reach, and it’s only accelerating.

As digital dentistry matures, margins are naturally compressing. Manufacturers and suppliers are leaning more on distributors to gain access to new markets. But that comes at a cost: margins are being exchanged for distribution channels.

And this trade-off is becoming increasingly expensive—especially through traditional, high-overhead channels.

2. Traditional distribution is losing scalability.

Brick-and-mortar operations, large local sales teams, and conventional trade show cycles still have their place, but they’re not scalable. Not in a market that’s increasingly price sensitive, tech-enabled, and globally competitive. Just look at Henry Schein , between 2021 and 2024 gross revenue went up by 25.74% but profit margins droped by a stagering 38.19% (if we run the comparisson on net profit margin, the drop is 50.85%). This is just not sustainable

Distributors like Henry Schein , Patterson Dental , and Benco Dental still hold strong position, but it’s only a matter of time before they’re challenged by lighter, leaner distribution models that don’t carry the same cost structure.

We’ve seen this before:

• Amazon vs Barnes & Noble
• Netflix vs Blockbuster

Digital dentistry isn’t special. Disruption is coming. The only question is: who will adapt in time?

3. What options do distributors have?

I see only a few viable strategies, and none of them are easy:

Option 1: Vertical Integration

Buying out suppliers and manufacturers to control the full value chain. Sounds attractive in theory, but in practice? It rarely works. Different cultures, different business models, and a lack of post-merger synergy have made this incredibly difficult in our industry.

I’m yet to see a truly successful M&A between a distributor and a supplier in dental.

Option 2: Build scalable, digital distribution models

This means rethinking what "sales" looks like. Investing in demand generation, digital funnels, content-driven sales, and light-touch support models. It's the dental equivalent of moving from retail to e-commerce.

Option 3: Accept low margins on legacy products, monetize through tech

The Amazon playbook: use low-margin products to drive traffic and volume, and build high-margin tech products (think AWS). Could a dental distributor follow suit with practice management software, analytics, or lab-connectivity platforms? Possibly, but it requires a different mindset and I honestly don't see huge companies being able to pivot fast enough.

4. What should manufacturers and suppliers be thinking about?

Margins are shrinking, Just look at Dentsply Sirona 's results since 2021. Both gross revenue and margins dropping drasticly

That means manufacturers will need to:

1. Control production costs

We’ll likely see a continued shift toward low-labor cost countries, India, Southeast Asia, parts of Latin America. We’ve seen it in smartphones, apparel, automotive, dentistry is no different.

2. Build their own sales channels

To preserve margin without inflating MSRP, many manufacturers will build direct-to-market channels, especially online. But doing so will inevitably create channel conflict with existing distribution partners.

3. Double down on R&D to escape commoditization

Let’s be honest, hardware is being commoditized. Scanners, printers, mills, it’s getting harder to differentiate. The breakthroughs will come from software: AI-enhanced workflows, cloud platforms, automation, integration.

Final Thoughts

We're at a turning point.

The technologies showcased at IDS International Dental Show 2025 are impressive, but they’re only part of the story. The business models behind how those technologies are brought to market are changing just as fast.

Distributors and manufacturers alike need to be asking themselves:

• Are we built to scale in a market where software moves faster than hardware?
• Can our cost structure survive in a margin-compressed environment?
• Do we own our relationship with the end customer, or are we renting it?

These aren't easy questions, but they’re the right ones.

If you're a supplier, manufacturer, or distributor thinking about what the next 5–10 years look like, I’d love to connect. This is exactly the kind of strategic work we support at Dental Tech Expert .

Let’s build the future of dentistry, not just react to it.

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