Supply chain volatility no longer consists just of occasional disruptions. Instead, chaos has become a “permanent operating condition,” write Vinayak Hegde, product marketing specialist and Mandy Chung, senior manager, business intelligence and analytics with project44, a supply chain solutions provider. Hegde and Chung analyzed multiple events over the past few years that had disrupted many supply chains, including the Panama Canal drought, the collapse of the Baltimore bridge, and the imposition of multiple tariffs. Disruptive events no longer arrive sequentially, they found. Rather, a new disruption often occurs before supply chains have stabilized from the previous ones. Given the volatile environment, any time a shipment is in motion, it’s potentially at risk, says Eric Fullerton, vice president of data insights with project44. Not surprisingly, many organizations are placing a greater emphasis on supply chain resilience and flexibility. They’re reassessing inventory strategies, options for supplier diversification, and transportation networks, says Catherine Chien, chair of Dimerco Express Group, a logistics provider. Their goal is to reduce dependence on any single market, route, or source of supply. As a result, the role of logistics providers is also evolving. They’re expanding their focus from transportation execution toward broader supply chain management and risk mitigation. “Customers increasingly expect logistics partners to provide market intelligence, alternative routing options, risk assessments, and operational contingency plans, rather than simply moving freight from point A to point B,” Chien says. Here are 9 ways 3PLs are tackling volatility for their shipper customers. 1. Plan for Viral Moments Logistics providers help shippers plan for and navigate demand spikes that can hit when a product gains exposure because a social media post goes “viral” and captures widespread attention.
Automated warehouses help manage volatility by aligning technology with a shipper's specific supply chain needs. This targeted approach ensures that automation remains practical and scalable and directly supports daily operations.
“Then it’s just go, go, go in that moment because you want to capitalize on this event,” says Andreas Podwojewski, managing director in North America and Brazil with Arvato, a supply chain solutions provider. When an Arvato client ran TikTok campaigns for the first time, demand jumped 1,000% over forecast. Arvato worked with the company to develop an “ad hoc mini-peak plan,” he says. Arvato serves this client from its Louisville, Kentucky facility, which is highly automated and encompasses seven buildings spread over more than four million square feet. Arvato’s unified SAP environment and “standardized execution playbook,” were also key to its ability to serve this client. The playbook offers a defined, repeatable way of running and scaling operations, Podwojewski says. It covers standard process designs for inbound, pick-and-pack, and returns; a defined system architecture and configurations; workforce models and training concepts; and defined responses for peaks and promotional spikes.
By leveraging its automation, unified information environment, and standardized processes, Arvato could quickly train its teams and redeploy staff to meet the increased demand while maintaining service levels, Podwojewski says. 2. Implement Automation to Meet Shippers’ Needs An optimal automation solution is the one that best addresses a shipper’s supply chain needs, not necessarily the largest or most technically sophisticated one, Podwojewski says. For example, an ecommerce shipper might experience very high peaks during promotional periods, but a relatively moderate baseline demand. In that case, a capital-intensive goods-to-person system that’s built to handle the peaks would be underutilized for a large part of the year. A smarter approach could be to build a promotional fast-pick area using manual picking and scale it when needed, while sizing a relatively less expensive goods-to-person system
July 2026 • Inbound Logistics 119
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