Supply Chain gaps, GenAI powers autonomy, stricter returns impact shoppers

Ian Sinclair

Ian Sinclair

EVP, Commercial Solutions

ISinclair@nls.ca

National Logistics Services
150 Courtneypark Drive West
Mississauga, Ontario

In turbulent economic times, a true logistics partner can scale up, optimize and help your fast-moving enterprise adapt and thrive. 

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An EY survey reveals supply chain leaders see their role as central to customer experience, while many C-suites view it as a cost center. Generative AI is enabling autonomous supply chains with advanced forecasting and real-time solutions. A Blue Yonder survey shows stricter return policies are driving shoppers to cut spending or switch retailers. Wells Fargo reports tariffs and uncertainty are reshaping strategies, though U.S. consumers remain resilient. KPMG warns Canada’s transportation sector faces higher costs and delays as U.S. tariffs take effect.

An EY survey shows a gap: most supply chain leaders see their function as vital to customer experience, while the C-suite views it mainly as a cost center. Bridging this requires alignment on technology, cost strategies, and resilience in shifting trade conditions. By leveraging AI, streamlining operations, and evolving manufacturing, supply chains can be positioned as engines of growth rather than expenses.

Generative AI (GenAI) is driving autonomous supply chains with real-time solutions, advanced forecasting, and seamless operations beyond traditional AI. Yet, while 73% of executives plan to deploy it, only 7% have fully implemented GenAI, often due to poor alignment with strategy and data readiness. Companies that integrate GenAI effectively are more likely to achieve resilience, efficiency, and low-human-touch operations in today’s disruption-heavy climate.

A Blue Yonder survey of 6,000 consumers found that stricter return policies, like higher fees, shorter windows, and more rejections, are pushing shoppers to cut spending or switch retailers. Globally, 84% said they would abandon a favourite retailer if rules became too strict, with concerns strongest in Europe and the Middle East. Sustainability also matters, as most consumers won’t return items if they know they’ll end up in landfills.

Wells Fargo’s 2025 Supply Chain Report shows tariffs and uncertainty are reshaping strategies, but U.S. consumers remain resilient, keeping retail sales steady. Retailers are cautious, using selective inventory buys, blended pricing, and targeted promotions to offset tariff pressures in vulnerable sectors like furniture, apparel, and autos. Transportation strategies are also shifting, though low freight rates are helping businesses manage costs heading into 2026.

KPMG’s survey shows U.S. tariffs are set to hit Canada’s transportation sector hard, with 77% of leaders anticipating higher costs, logistics delays, and customer losses. Companies are responding by reviewing operations, building supply chain resilience, diversifying markets, and tapping government support. Proactive steps like AI-driven logistics, contract renegotiation, and exploring interprovincial trade can help businesses stay competitive amid growing risks.

Are your logistics requirements being effectively addressed? As we head towards the Black Friday, let’s explore your eCommerce fulfillment strategies. You can book a brief call with our team of seasoned logistics professionals to evaluate your needs and formulate a customized plan to propel your business forward.

For quick and easy scheduling, here’s a link to my full calendar.

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NLS Logistics Team Communications
As a leading Third Party Logistics (3PL) firm, we have the strategic infrastructure, technology relationships, and insights to help Canadian and international brands reach and serve the Canadian market
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