In today’s rapidly evolving commerce landscape, supply chains are transforming from traditional, linear distribution models into flexible, omnichannel fulfilment networks that prioritise customer needs and resilience. This fundamental shift was a key focus in a recent episode of The New Warehouse Podcast, where Manish Kapoor, founder and CEO of Growth Catalyst Group (GCG), shared insights drawn from his extensive experience at industry giants like Amazon and FedEx.
Manish’s company, GCG, comprises three specialized branches: Advatix, offering consulting and tailored technology solutions; XPDEL, providing third-party logistics (3PL) services to small and midsized businesses; and Archway, which focuses on in-store marketing fulfilment for Fortune 500 clients such as Starbucks. These divisions collectively aim to serve as a global “one-stop shop” for supply chain innovation, supporting a wide spectrum of companies from startups to industry leaders.
Central to the discussion was the profound impact of e-commerce on supply chain design. Unlike the past, when goods moved directly from warehouse to store in bulk, today’s fulfilment centres must adeptly handle both business-to-business (B2B) shipments and direct-to-consumer (DTC) parcel orders. “It’s shifted to fulfilment centres, because you’re fulfilling for eaches,” Kapoor explained, highlighting the operational complexities introduced by parcel-level fulfilment. Successful 3PLs now must have the capability to break down truckloads into both retail casepacks and individual consumer orders through flexible, technology-driven processes.
This transformation demands more than just infrastructure changes; it requires comprehensive data analytics, adaptable software platforms, and most importantly, a deep understanding of the service level expectations of end customers. Whether a customer requires same-day delivery or can tolerate longer lead times directly shapes supply chain network design and technology investments. Kapoor advocates beginning every strategy from these customer-centric service requirements rather than guesswork, stating: “Do your customers need same-day, next-day, or are they okay with five-day delivery? From there, companies can design and choose sites optimally.”
The concept of supply chain resilience took centre stage in the conversation, especially in light of recent global shocks including tariffs, geopolitical tensions, and the COVID-19 pandemic. Kapoor urged businesses to not merely respond reactively to disruptions but to embrace change as an ongoing challenge that tests preparedness. Diversifying supply chains through multi-sourcing is a critical strategy, though Kapoor cautions that shifting away from Asia-heavy supply chains to nearshoring in Mexico or Canada comes with its own risks and requires significant time and investment.
This stance on resilience aligns with broader industry insights. Thought leaders across the supply chain field emphasise that resilience is vital not just for risk mitigation but also for enabling growth and maintaining customer service standards. In one related discussion, companies with dedicated supply chain resilience roles were shown to experience superior revenue growth and less margin erosion over a year compared to those without such focus, highlighting the competitive advantage of building adaptable operations. Moreover, resilience strategies increasingly integrate advanced technology, such as AI-enabled command centres and systems that improve operational transparency and decision-making.
Cost pressures, including inflation and rising capital expenditure, have also influenced consumer expectations and buying behaviours. Kapoor noted that consumers are increasingly willing to accept longer delivery times or purchase used goods to avoid premium shipping fees. This shift necessitates that companies rethink their inventory management and fulfilment strategies to balance costs with service quality.
The integration of technology remains a critical theme. Rather than allowing tech platforms to dictate operational processes, Kapoor emphasises that technology should support the most optimised workflows. This process-first approach underpins continuous improvement and flexibility, enabling businesses to pivot swiftly as market conditions evolve.
As supply chains continue adapting to the demands of omnichannel retailing, geopolitical volatility, and changing consumer habits, the lessons shared by Growth Catalyst Group resonate widely. Companies that harness customer-centric design, embrace change proactively, and leverage technology wisely are better positioned to build supply chains that are not only resilient but also competitive in an increasingly complex global marketplace.
Source: Noah Wire Services