Canadian retailers are confronting a fundamentally different supply chain environment where past operating models no longer work, according to Gary Newbury, an expert in end-to-end retail supply chain networks.
Newbury says many retailers are still relying on systems and processes designed for a far simpler, pre-2019 world. While global disruptions over the past few years exposed vulnerabilities, he argues that the real shift is the disappearance of any margin for error. Cost pressures from labour, transportation, inventory carrying and tariffs are now structural, not temporary, making it impossible to negotiate or spreadsheet costs away.
According to Newbury, supply chain cost should be treated as a design issue. Retailers that expect conditions to “return to normal” are already behind, as expenses continue to rise and flexibility continues to shrink. Sustainable cost control, he notes, requires re-engineering how goods flow through the network, not simply cutting headcount or squeezing vendors.
He also points to last-mile fulfillment as a growing challenge. E-commerce options such as same-day delivery, click-and-collect and free returns expanded rapidly, but often without sufficient operational control. Newbury says service promises are increasingly misaligned with economic reality, particularly as return volumes and reverse logistics costs climb.
On automation and artificial intelligence, Newbury urges pragmatism over hype. While he supports targeted automation, he cautions that most retailers are not ready for fully autonomous supply chains. The greatest value today comes from process clarity, reliable data and disciplined execution rather than ambitious, futuristic visions.
Cyber risk and AI governance are also rising concerns as retailers expose more systems to suppliers and partners. Newbury says control will matter more than novelty heading into 2026.
Finally, he describes sourcing volatility as a board-level risk. Tariffs, geopolitical uncertainty and foreign exchange fluctuations are forcing retailers to rethink global sourcing, with nearshoring emerging as a risk-management strategy rather than a cost play.
Overall, Newbury emphasizes that supply chain resilience is now a strategic imperative for Canadian retail.
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