Retailers and brands often chase adaptable fulfillment operations through sweeping transformations, such as supply chain network redesigns, major process overhauls or rip-and-replace technology investments. But big bang initiatives aren’t always the best path to agility. 

Many companies navigating today’s volatile retail landscape have already undertaken major initiatives since the pandemic, laying the groundwork for resilience. Meanwhile, growing organizations may be on the brink of implementing large-scale changes to keep pace with competitors, potentially risking overinvestment before it’s truly needed. 

For many businesses, small, incremental changes that compound over time will deliver meaningful improvements in scalability and adaptability. Conversely, organizations that wait for a single transformative fix often find themselves reacting too late when demand shifts.

What does agility mean in fulfillment?

In a recent survey of 150 brand and retail leaders conducted by GXO and Retail Dive’s Studio, respondents offered a surprisingly broad definition of fulfillment agility. While scaling labor quickly topped the list, executives also pointed to switching partners, adapting technology, adjusting promotions in real time and shifting inventory across channels.        

This diversity underscores two distinct truths: Agility isn’t derived from a single capability, but from a spectrum of interconnected decisions and strategies. And improvements vary by brand or retailer. 

So, where should companies start? Our research points to five critical focus areas.

1. Optimize inventory for responsiveness

Inventory represents the largest single investment in most fulfillment networks — and often the greatest source of pain points. Two challenges that frequently undermine flexibility include: 

• Fragmented inventory. Channel-specific inventory pools make it hard to redirect stock based on actual demand.
• Obsolete inventory. Slow-moving products clog warehouses, drive up storage costs and make it difficult to find space during peak periods.

Agile models tend to treat inventory as a shared, dynamic asset to improve visibility and responsiveness. To achieve this, businesses need a unified approach that consolidates inventory visibility across channels and uses technology-enabled tools to allocate stock where it’s needed most. Done well, this strategy turns inventory from a constraint into a competitive advantage.

2. Build a workforce model for flexibility

Survey respondents agreed on labor flexibility as a defining element of fulfillment agility —

and for good reason. It goes beyond scaling up or down. Brands need a workforce model that can adjust to variability without excessive risks or costs. 

This model starts by cross-training full-time employees to move fluidly between fulfillment roles. A highly skilled and flexible core workforce enables organizations to avoid overcommitting when supplementing with temporary or seasonal labor. 

Labor conditions and markets vary widely across geographies, so workforce strategies should be tailored to local needs. For example, a tactic that works in Southern California may not be practical in the Midwest. Beyond flexibility, fostering a positive work environment that minimizes turnover and builds skills is essential for long-term resilience.

3. Align technology to business goals

Technology is often marketed as the quickest route to adaptability, yet our survey results tell a different story. Fewer than a third of retail and brand executives are satisfied with ROI from AI forecasting or planning tools and just over a third with robotics and automation. 

Investments without clear objectives will often fail to deliver value. Identify priority problems, then choose solutions that align with those goals. The most effective strategies use modular, practical tools that simplify workflows, reduce training time and deliver incremental gains. Solutions like GXO IQ provide integrated, AI-powered visibility and predictive insights to maximize ROI.

4. Connect stakeholders for faster decisions

Even the most adaptable fulfillment operation can be derailed by internal misalignment between functions. When different teams create forecasts, inventory plans and promotional strategies in isolation, fulfillment teams are left to react — disrupting operations and driving up costs. 

Agility doesn’t require a perfect forecast; it simply requires connected decisions. Building strong cross-functional collaboration helps organizations respond to real demand signals and avoid last-minute surprises.

5. Leverage partnerships to drive growth

The right external partnerships turn scalability into a competitive advantage. Many organizations rely on third-party logistics providers (3PL) to expand capacity or geographic reach, but not all partners deliver the same value. 

A strong 3PL should act as a strategic extension of the brand, bringing deep expertise to design efficient, productive solutions that most companies can’t replicate in-house. These partnerships also free businesses to focus on their customers and enable faster scaling and more effective response than transactional, short‑term arrangements.

Agility is not a switch to flip on

Fulfillment agility is rarely achieved through a single initiative or investment; it’s built through steady, meaningful improvements. And it’s not a destination; it’s a continuous pursuit. 

Organizations that prioritize steady progress will be best positioned to absorb volatility, scale efficiently and deliver exceptional customer experiences, regardless of what the market brings.