Retail is changing fast and if there’s one thing that’s becoming clear, it’s that logistics is the backbone of future success.
With customers expecting everything from next-day delivery to easy returns, and the rise of social commerce making things even more complex, retailers are under pressure to keep up. Add to that the huge increase in sustainability regulations (up 155% in the last decade), and it’s no wonder brands are finding it hard to balance growth and efficiency.
That’s exactly where the latest report from GXO comes in. It explores five of the biggest logistics challenges that retailers face today and reveals how plugging into a flexible, tech-forward fulfilment solution could be the key to navigating these hurdles and staying ahead of the curve. Let’s break it down.
Challenge 1: Controlling costs
Retailers are finding it tougher than ever to keep costs under control, especially with inflation and unpredictable demand. But the report highlights a simple solution: multi-client fulfilment. Instead of investing heavily in warehouse space and technology upfront, retailers can plug into GXO Direct’s network of premium facilities, sharing costs with other brands. It’s a ‘pay as you grow’ model that offers flexibility, better access to resources and a chance to scale operations without breaking the bank.
Challenge 2: Keeping up with dynamic demand
From viral social media trends to unpredictable market shifts, we all know that demand can change in an instant. Forecasting becomes a guessing game and that’s where many brands struggle. According to the report, a logistics partner that can scale up or down with demand is crucial. Whether it’s expanding warehouse space or increasing workforce size during peak seasons, a flexible fulfilment system allows retailers to respond quickly without missing a beat.
Challenge 3: Elevating the customer experience
Logistics plays a direct role in shaping customer satisfaction. Out-of-stock products, late deliveries or clunky returns processes can be deal-breakers for shoppers. The report found that efficient logistics – powered by advanced warehouse management systems – can improve stock visibility, ensure orders are accurate and streamline returns. This boosts customer loyalty and helps brands stay competitive, even in a crowded market.
Challenge 4: Moving beyond manual operations
As technology advances, the retail industry is racing to keep up. Outdated, manual operations can slow down processes and hurt a brand’s reputation. Adaptive technology is the answer, and the report points out how retailers are turning to tech solutions like automation and robotics to speed up fulfilment, reduce errors and improve safety in warehouses.
Challenge 5: Growing ethically
Sustainability isn’t just a buzzword; it’s becoming a must-have for retailers. The report highlights how brands are feeling the pressure from both consumers and regulators to adopt greener practices. Whether it’s cutting down on waste, recycling returned goods or finding ways to operate more efficiently, a logistics partner can help retailers build ethical, environmentally friendly operations that still drive growth.
The bottom line
The report makes one thing acutely clear: in today’s fast-moving retail environment, having the right logistics partner is more important than ever. GXO Direct’s multi-client fulfilment model offers flexibility, cutting-edge technology and cost savings that can help brands not just survive but thrive. Whether you’re looking to scale, improve customer satisfaction or achieve ethical growth, plugging into this solution could be the key to unlocking long-term success.
Curious to learn more? Dive into the full white paper for deeper insights into how logistics can help your brand grow.
