Case Study: How Border States Built an Executive Role to Drive B2B Ecommerce Growth

Hook: When digital initiatives stall, who owns the outcome?

Most distributors and B2B sellers know the pain: endless pilots, vendor churn, and a congested roadmap that never converts into measurable revenue. Teams point to technical debt, procurement points to ERP constraints, and leadership asks for ROI. Border States’ recent move to create a VP of digital transformation offers a concrete pattern for how companies can cut through that friction and accelerate B2B ecommerce, automation, and data-driven change.

Executive summary — what this case study reveals

This is a deep-dive analysis of why adding an executive-level owner for enterprise digital strategy helps companies move faster, make decisions smarter, and turn digital investments into measurable outcomes. Using Border States’ 2026 appointment of Charlie Hoertz as the springboard, we unpack the strategic rationale, the practical roadmap such an executive should follow, the organizational design that enables success, and the KPIs to track. If you’re a small business owner or operations leader wondering whether to hire a transformational executive or invest in more point solutions, this guide gives you an actionable blueprint.

Why Border States’ move matters

Border States is a 100% employee-owned distributor of electrical products and services operating across 31 states with more than 3,500 employees. In early 2026 the company named Charlie Hoertz vice president of digital transformation, a new role charged with accelerating the distributor’s B2B ecommerce, data and automation initiatives.

“The pace of change driven by technology and AI is unprecedented, and success requires bold leadership and a clear vision,” said Jason Stein, chief information officer at Border States.

The appointment signals a shift from project-centric IT to outcome-oriented leadership: one executive accountable for aligning commerce, data, and automation with measurable enterprise outcomes.

Why a VP of Digital Transformation accelerates growth

Putting a senior leader in place is not symbolic—when done right, it resolves five persistent blockers:

• Cross-functional alignment — consolidates ownership across sales, operations, IT, and supply chain so initiatives don’t stall in handoffs.
• Strategic prioritization — replaces a list of pilots with a prioritized portfolio tied to revenue or cost targets.
• Vendor and architecture coherence — enforces a composable commercial architecture rather than 20 disconnected tools.
• Data governance and observability — creates a single source of truth for pricing, inventory, and customer behavior.
• Accountability for ROI — sets clear KPIs and ties leadership incentives to digital outcomes.

From pilots to production: the leadership delta

Executives bring two advantages that managers and committees rarely achieve: the ability to reallocate capital quickly and the muscle to change organizational incentives. That’s the difference between running a proof-of-concept and scaling automation across a national distribution network.

Role profile: what a VP of Digital Transformation should own

This role sits at the intersection of strategy, technology, and operations. For B2B ecommerce and distributors, responsibilities typically include:

• Enterprise digital strategy: set a 3–5 year roadmap that aligns commerce with supply chain and service.
• Data & analytics: lead master data programs, customer data platforms (CDP), and reporting that tie to revenue/cost metrics.
• Automation & AI: prioritize automation use cases (order routing, invoicing, demand forecasting), and build an MLOps pipeline for models in production.
• Systems modernization: guide ERP, PIM, OMS, and commerce architecture decisions toward API-first, composable solutions.
• Change management: sponsor organizational change, upskilling, and governance to ensure adoption.

Reporting lines & governance

To move fast, the VP should report to either the COO or CIO (or a dual-reporting matrix) and chair a small digital steering committee. Critical: the role must have budget authority and veto power over projects that contradict the enterprise roadmap.

Practical 18-month roadmap — a playbook inspired by Border States

Below is an actionable phased roadmap that mirrors the priorities Border States outlined—modernizing systems, boosting online ordering, and expanding AI and automation.

Phase 0 — Initiate (0–2 months)

• Appoint the executive and form a five-member steering committee (sales, ops, IT, finance, product).
• Run a 30-day digital health audit: catalog systems, integrations, data owners, and current automation points.
• Identify 3–5 business-critical KPIs (e.g., ecommerce penetration, order automation rate, average order lead time).

Phase 1 — Quick Wins (2–6 months)

• Fix conversion leaks in online ordering (checkout UX, pricing errors, catalog completeness).
• Introduce real-time inventory flags for key SKUs by integrating ERP with the commerce layer.
• Automate low-complexity tasks: vendor EDI processing, invoice matching, returns triage via RPA.
• Deliver a dashboard: daily ecommerce revenue, order automation %, SOX-friendly audit trails.

Phase 2 — Scale & Standardize (6–18 months)

• Deploy composable components: PIM for product data, OMS for fulfillment orchestration, CDP for customer insights.
• Build an analytics layer with golden records and data contracts to enable downstream ML models.
• Automate order lifecycle end-to-end for repeat customers, pushing self-service for account management.
• Start small ML pilots for demand forecasting and dynamic stocking on high-volume lines.

Phase 3 — Optimize & Innovate (18–36 months)

• Operationalize MLOps: model monitoring, retraining cadence, and performance KPIs.
• Integrate generative AI for sales enablement (automated quoting, contextual product recommendations) while enforcing guardrails.
• Expand automation to supplier collaboration and advanced order routing across regional DCs.
• Measure sustained ROI: lift in ecommerce margin, reduction in order-to-cash time, cost per order.

Actionable KPIs to measure success

Track metrics that tie digital work to enterprise outcomes. Examples:

• Ecommerce penetration: % of total sales originating from digital channels.
• Order automation rate: % of orders processed without manual intervention.
• Time-to-fulfill: average hours/days from order to shipment.
• Customer retention for digital buyers: repeat rate for customers using self-service.
• Cost per order: including fulfillment and service touch points.
• Model performance: forecast accuracy or precision/recall for classification tasks.

Technology choices that matter in 2026

Recent developments through late 2025 and early 2026 crystalize a few tech priorities for B2B ecommerce and distributors:

• Composable and API-first architecture — enables rapid replacement of modules without a big rip-and-replace.
• Headless commerce — separates frontend experience from backend processes for faster experimentation.
• Master data tools (PIM/MDM) — essential for accurate catalogs and dynamic pricing at scale.
• CDP + Analytics — unify B2B buyer profiles to power personalization and account-based experiences.
• MLOps and model observability — production-ready machine learning requires monitoring and governance.
• RPA & hyperautomation — automate high-volume manual tasks while integrating with AI where appropriate.

For small and mid-sized distributors, the top practical rule is: prioritize ERP connectivity and data cleanliness before layering advanced AI.

Building the data & AI foundation

A VP of digital transformation must force early decisions about data ownership. Without master data and clear telemetry, AI projects fail to scale. Practical steps:

1. Create a product and customer golden record (start with your top 10% SKUs and largest accounts).
2. Define data contracts between systems so downstream teams know SLAs and schemas.
3. Instrument event streams for customer behavior (catalog views, RFQs, ordering cadence) to enable real-time personalization.
4. Adopt MLOps practices: version models, monitor drift, and build a retraining schedule.
5. Document ethical and privacy guardrails, especially for generative AI use in quoting and customer communications.

Change management: turning users into adopters

Technology alone delivers nothing—adoption does. The VP role must be part technologist, part organizational psychologist. Concrete tactics:

• Run cross-functional design sprints with power-users from sales and distribution centers.
• Create a digital champions program—one champion per region to surface local issues quickly.
• Link executive incentives to digital KPIs (e.g., share of digitally processed orders).
• Offer microlearning modules for new tools and publish a monthly adoption dashboard.

Talent mix: hiring and upskilling

Border States recruited an experienced leader with more than 15 years in digital transformation. For companies replicating this approach, the talent equation is:

• Hire one strong VP or Head of Digital with enterprise program experience.
• Complement with product managers, integration engineers, data engineers, and an automation lead.
• Invest in reskilling existing operations staff for digital operations and analytics.

Budgeting and ROI expectations

Set realistic expectations. Early investments focus on integration and data quality—less glamorous but critical. Typical spend mix across 18 months:

• 30–40% systems & integrations (ERP connectors, PIM, OMS)
• 20–30% automation and RPA pilots
• 15–25% people and change management
• 10–15% experimentation with AI and personalization

Measure ROI by tying investments to incremental revenue from ecommerce, reduced cost-per-order, and improved order accuracy. Aim for payback on core automation projects within 12–24 months. For cloud spend control and predictable billing, pair your roadmap with a serverless cost governance playbook.

Common pitfalls and how to avoid them

• Starting with AI before data is ready — guardrail: require gold record coverage for target SKUs before ML pilots.
• Too many point solutions — guardrail: enforce an architecture principle and require API compatibility for new vendors.
• Weak governance — guardrail: publish a digital policy and a decision-rights matrix.
• Neglecting operations — guardrail: always include fulfillment and customer service in pilot success criteria.

Is hiring a VP the right move for smaller distributors?

Not every company needs a full-time VP on day one. Alternatives include:

• Fractional executive for the first 6–12 months to create the roadmap and governance.
• Hire a senior product leader reporting to the COO with a clear mandate to scale after 12 months.
• Engage a trusted systems integrator to deliver core integrations under the guidance of an interim executive sponsor.

However, if your business has multiple regions, complex supply chains, or a large installed base of commercial customers, an executive owner accelerates outcomes—and reduces costly experiment churn.

Lessons from Border States — replicable strategies

• Make leadership accountable — a named executive drives decisions and trade-offs.
• Focus on customer experience — improving online ordering and self-service creates immediate ROI.
• Prioritize data cleanliness — invest early in PIM/MDM and ERP integration.
• Balance quick wins with scalable architecture — short-term automation plus long-term composable design.

2026 trends shaping the next wave of B2B ecommerce

As we move through 2026 several trends are redefining what a VP of digital transformation must deliver:

• Generative AI acceleration — from automated quoting to intelligent RFP responses, but with stronger regulatory and ethical guardrails.
• Hyperautomation — combining RPA, AI, and integration platforms to automate complex, cross-system processes.
• Composable commerce maturity — more plug-and-play connectors for ERP-to-commerce flows, lowering integration cost.
• Data sovereignty and privacy — increasing emphasis on transparent data use and customer consent.
• Resilience over optimization — supply chain strategies prioritize availability and agility post-2024–25 disruptions.

Practical takeaway checklist

1. Define the business outcomes you expect from digital (revenue, cost, retention).
2. Run a 30-day digital health audit and identify your top 10 SKUs and accounts.
3. Decide on the leadership model (full-time VP, fractional, or senior product lead).
4. Prioritize ERP connectivity and master data before experimenting with advanced AI.
5. Measure success by ecommerce penetration and order automation rates—not vanity metrics.

Final thoughts

Border States’ decision to create a VP of digital transformation is a case study in organizational clarity. It recognizes that digital acceleration is less about spot projects and more about sustained enterprise coordination: product data, commerce UX, fulfillment orchestration, and AI-driven automation working together under accountable leadership. For distributors and B2B sellers, the lesson is clear—if you want measurable returns from ecommerce and automation, make someone accountable, give them authority, and align incentives to outcomes.

Call to action

Ready to explore whether a VP of digital transformation is the right move for your business? Start with a 30-day digital health audit and a one-page outcome roadmap. Contact our hiring specialists or download the VP role brief and implementation checklist to begin building a scalable, data-driven ecommerce strategy today.

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