Inbound Logistics | August 2026

from stores, as well as from distribution centers, offers “a relief valve,” says Shauna Bowen, chief digital and transformation ofcer with Radial, a logistics and fulllment provider. Retailers can pull inventory from whichever node is more effective. Scenario modeling can help retailers strategically place distribution nodes and build this type of network, Bowen says. Scenario modeling ( see sidebar, page 35 ) examines a range of potential futures and explores the differences between them. 4 TAKE A NETWORK- WIDE APPROACH TO INVENTORY Providing a seamless experience regardless of the channel(s) a consumer uses requires accurate, real-time inventory visibility across all channels. Inventory should be “network-wide” rather than channel-owned, says Sundip Naik, Americas leader for logistics and fulllment with EY. Accomplishing this involves building real-time visibility across channels and leveraging Available-to-Promise (ATP) logic for true, real-time order orchestration and allocation. ATP refers to the quantity of a product a business can allocate to new orders without breaching existing commitments. It generally considers on-hand inventory and conrmed sales orders, among other factors. 5 BUILD A FLEXIBLE TECHNOLOGY STACK A exible technology stack allows retailers to adjust their business without rebuilding their technology every time their needs change, Bowen says. Say a retailer is expanding into new channels or introducing new fulllment options. Modular, exible technology enables those changes to happen faster, with less disruption and at a lower cost than typically would be the case with rigid, monolithic systems. AI accelerates this by making it easier to connect data, automate workows, and introduce new capabilities without extensive custom development.

ECOMMERCE RETURN RATES The dollar value of annual

ecommerce returns increases each year.

How much the dollar value of returned online merchandise increased from 2023 to 2024 $114.5 billion or 46.2 % of retail return dollars are from items purchased online 52.9 % 34 % 18 % of ecommerce orders are returned through the carrier to be mailed back

Online sales revenue lost to returns $362.2 billion or 24.5 % of consumers are more likely to return products they purchased online as opposed to in-store purchases

AI and data analytics are transforming point-of-sale systems such as NRS Pay, helping retailers forecast demand, streamline inventory, and make data-driven purchasing decisions.

6 FIGURE OUT WHERE CONSUMERS ARE GOING AND GET THERE FIRST This step sounds daunting, if not impossible. Yet it’s also critical. “More than ever before, a good retailer needs to understand the consumer,” Mathews says. This understanding needs to cross platforms, regions, and demographics.

AI can help, as it can synthesize massive volumes of historical, contextual, and near real-time data, and then generate predictions and recommendations faster than traditional analytical methods, Ponce says. For example, AI can continuously analyze consumers’ browsing behavior, purchase history, and search queries,

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