Store-level strategies for supply chain resilience
Today’s retail landscape continues to evolve.
It first shifted from traditional brick-and-mortar to e-commerce, and now to an interconnected ecosystem where channels converge to meet changing consumer behaviors and expectations. And according to Deloitte, nearly 80% of shopping still occurs in physical stores, underscoring their critical role in an omnichannel world.
To continue serving a crucial function in the marketplace, physical retail stores are transitioning into tech-enabled hubs that blend convenience and customer experience. With the right strategies and collaborative mindset, store teams have the opportunity to increase resiliency and agility while mitigating disruption across the supply network.
To turn that opportunity into action, retail supply chain leaders can start by rethinking how their store networks are designed and supported.
Drive flexible fulfillment with strategic sites and partnerships
A well-structured store and fulfillment network determines how quickly and cost-effectively retailers can respond to disruptions—whether that’s shifting inventory to meet local demand, reducing last-mile delivery times or maintaining service levels during an outage. To accomplish this, creative approaches to strategy and partnerships are key.
Every retailer has unique goals, and their fulfillment strategies should reflect that, weighing factors like proximity, real estate and delivery expectations. For retailers focused on delivering in urban areas, micro-fulfillment centers are increasingly being integrated into existing stores to save on real estate and enable faster delivery.
On the other hand, retailers needing broad distribution are adopting a hub-and-spoke model in which a central warehouse (hub) supplies goods to regional stores (spokes). While this model requires dedicated facilities, it aligns the network’s reach and flexibility with business needs.
Agility doesn’t stop at network design. Retailers can also strengthen their operations by building deeper relationships with local suppliers and partners, unlocking efficiencies through collaboration.
This might include sharing transportation resources, coordinated inventory management or flexible return processes, all of which enable faster response times, smarter recovery and better customer service.
What does this look like in practice? Take Wakefern Food Corp., the largest retailer-owned cooperative in the U.S., for example. By working with its pooled pallet provider, the retailer shifted pallet return responsibilities to key regional partners, eliminating unnecessary back-and-forth transportation and streamlining operations.
This strategic collaboration resulted in significant cost avoidance, eliminated 10,000 transport miles and cut 30,000 kilograms of carbon dixoide emissions.
Spot and address the silent disruptors
While strategic partnerships and site selection lay the groundwork for flexibility, true resilience depends on enhanced network visibility to uncover and eliminate hidden inefficiencies.
Issues like spoilage or product damage can often go unnoticed until it’s too late, and without understanding the root cause—like a supply delay, weather event or labor challenge—these issues can quickly snowball.
To proactively spot these inefficiencies and build resiliency, retailers can look to build a more connected supply network with digital and data-driven solutions. One example includes installing temperature and humidity monitoring tools during transportation. These enhanced data insights help to quickly spot inconsistencies and trace their origins, making them easier to solve.
At the store level, limited inventory tracking can slow down shelf stocking and hurt sales. For example, consider a leading seed supplier that appears in thousands of retailers and relies heavily on seasonal timing for peak performance.
Without accurate confirmation that products have arrived, delays in getting items on the floor can lead to missed opportunities when timing matters most. By using digital solutions to monitor pooled pallet journeys, the supplier gains real-time visibility into arrival times, enabling faster promotion setup and proactive issue resolution.
Enhance workforce skills internally and externally
Behind every resilient supply network are skilled, adaptable people, which means retailers investing in workforce agility are staying competitive in a crowded market.
Internally, cross-training associates to handle fulfillment, returns and inventory tasks keeps teams nimble. Versatile employees can better navigate staffing challenges, surges in online orders or delayed shipments, ensuring operations run smoothly even under pressure.
Externally, manufacturers can play a critical role in supporting retail partners with store operations. For example, they can manage inventory more strategically by holding stock until it’s needed at the store level, reducing excess on-site inventory. On the labor front, the delivery associates can often assist with shelf stocking, freeing retail employees to focus on customer-facing tasks and respond quickly to disruptions.
Turning resilience into reality
As in-store operations continue to anchor retail success, leaders must identify strategies that build resilience across the supply chain. By embracing flexible network design, enhancing visibility, and empowering teams, retailers can respond effectively to unexpected challenges and maintain a consistent customer experience, especially in times of uncertainty.
Heather Stuart is VP of retail supply chain solutions at CHEP U.S.
