How Adaptable Fulfillment Networks Strengthen Supply Chain Resiliency

Brian Mattingly, Executive Vice President, Operations at Saddle Creek Logistics Services, explains why resilient supply chains are now a cost-control strategy and a competitive advantage.

Q. Why is supply chain resiliency so important right now?

A. Supply chain resiliency is important because disruption is no longer an occasional event. It is part of the operating environment. Shippers are managing changing trade policies, demand swings, labor constraints, transportation volatility, and rising customer expectations—often at the same time.

For logistics leaders, resiliency means being able to keep customer promises when conditions change. Inventory may arrive late, volume may shift between channels, or capacity may tighten. The companies that respond fastest are not always those with the most inventory or the largest networks. They are the ones with the most usable options.

Q. How do you define a resilient supply chain?

A. A resilient supply chain can sense change, decide what to do next, and execute
without creating unnecessary cost or service failures. That distinction matters because
resiliency is sometimes confused with redundancy. It is not about duplicating every
asset or overstocking every SKU.

True resilience comes from optionality: the ability to shift inventory, reroute orders, flex
labor, adjust transportation modes, and make decisions with current, accurate data. It is
the difference between reacting after disruption damages service and adapting before
the customer feels the impact.

Q. What has changed about the traditional efficiency model?

A. For years, supply chain design was built around optimization: reduce inventory, lower
cost per unit, increase utilization, and remove waste. Those goals still matter. The
problem is that optimization often assumes the environment will remain stable.

When assumptions change, the network can become rigid. A logistics model that works
under one import strategy, customer mix, or transportation market may break down
when costs, lead times, or demand patterns shift. Today, the goal is not to choose
between efficiency and resiliency. The goal is to build networks that are efficient
because they are resilient.

Q. How does order fulfillment fit into supply chain resiliency?

A. Fulfillment is where supply chain strategy becomes visible to the customer. Inventory
positioning, warehouse capacity, labor planning, automation, order routing, parcel
decisions, and returns all come together in the fulfillment operation.

If fulfillment is treated only as downstream execution, companies miss a major
opportunity to manage risk. A more resilient fulfillment strategy gives brands multiple
ways to serve the customer. That may include distributing inventory across key regions,
supporting B2B and direct-to-consumer orders from the same operation, or using
systems that choose the best fulfillment node based on inventory, service commitment,
and transportation cost.

Q. What capabilities should companies prioritize?

A. Start with visibility. Leaders need a clear view of inventory, orders, capacity,
transportation performance, and exceptions. Without connected data, every disruption
becomes harder to diagnose and more expensive to solve.

Second, build flexibility into the physical network. That can mean additional fulfillment
nodes, flexible warehouse capacity, cross-trained labor, scalable automation, or
processes that handle multiple channels under one roof.

Third, strengthen transportation optionality. Companies should understand which orders
truly require speed and which can move more economically while still meeting the
customer promise. Resiliency improves when transportation decisions are connected to
inventory and fulfillment decisions rather than made in isolation.

Q. Does resiliency always increase cost?

A. Not when it is designed correctly. Unplanned flexibility is expensive. Designed
resiliency can reduce total cost.

The cost of a rigid network often appears in expedited shipping, split shipments,
stockouts, excess safety stock, detention, overtime, markdowns, and customer service
escalations. A resilient network can reduce those costs by placing inventory closer to
demand, improving order routing, smoothing labor utilization, and avoiding last-minute
workarounds.

The key is to measure cost across the full supply chain, not just inside one function. A
lower warehouse cost does not help if it creates higher parcel spend or missed delivery
commitments.

Q. What role do technology and AI play?

A. Technology gives companies the visibility and decision speed they need to be
resilient. AI can help identify patterns, forecast risk, improve labor planning, flag
exceptions, and recommend order routing decisions. But AI is only as valuable as the
data and processes around it.

Companies should not start with the tool. They should start with the decisions they need
to make faster or better: Where should this order ship from? Which facility needs labor
support? Which SKU is at risk? Which service promise is most profitable?

Q. What is your advice for supply chain leaders?

A. First, map the single points of failure. Look at where the business is overly
dependent on one facility, supplier region, carrier, technology platform, labor model, or
fulfillment process. Then stress-test the network against realistic scenarios: a demand
spike, a port delay, a tariff change, a carrier capacity issue, or a major channel shift.
Second, prioritize incremental changes. Resiliency does not always require a full
redesign. Sometimes the right move is adding one node, improving inventory visibility,
creating exception playbooks, or aligning fulfillment rules more closely with customer
promises.

Finally, do not design the supply chain only around what happened last year. Design it
around what could change next. In today’s market, resiliency is not a defensive posture.
It is how companies protect margins, strengthen service, and create the confidence to
grow.