Retailers Race to Automate Inventory as Store-Level Precision Becomes a Competitive Edge

In an era where Black Friday can start in September and TikTok can create a stockout overnight, traditional inventory systems are breaking under pressure. Retailers and their logistics partners are being pushed beyond monthly forecasts and bulk shipments—into a world of daily demand shifts, store-level nuance, and rising expectations for speed, flexibility, and capital efficiency.

As a result, a new class of logistics software has emerged—built not to replace legacy platforms outright, but to plug into them, unlocking smarter decision-making at the micro level. Modular, AI-driven tools are helping mid-sized and enterprise retailers alike bridge the gap between planning and execution, and it's increasingly clear that those who hesitate may be left with unsellable inventory and missed margins.

From Spreadhseets to Smart Agents: Pando’s Modular Approach

Many logistics teams—especially in the mid-market—still run on email chains and spreadsheets, even as customer expectations grow more volatile.

“Today’s supply chains still lean heavily on manual processes, siloed data, and reactive decision‑making,” said Pando’s CEO Nitin Jayakrishnan in a response to The Supply Chainer. “That leads to costly delays, opaque visibility, and endless exception firefighting.”

Pando’s solution: AI-powered agents that layer on top of existing systems, focusing on specific bottlenecks rather than forcing a full ERP or TMS overhaul. “Our agents ingest and harmonize data from TMS, ERP, and carrier portals to give a real-time view of every shipment,” said Jayakrishnan.

But visibility is just the start. According to Jayakrishnan, Pando’s agents automate freight tendering, detect routing anomalies, and proactively renegotiate rates—cutting procurement cycle times by up to 50% and reducing exception volumes by as much as 70%.

Just as important, the company’s usage-based pricing model allows mid-market clients to scale up gradually. “Start with the agent you need—like a tender manager or invoice validator—and expand as you see value,” she said. “Most clients see ROI within 3 to 6 months.”

Pando's optimizes transport planning to improve service while minimizing waste

Market Context: Tariffs, Surge Risk, and the Shrinking Planning Window

While software is getting smarter, the operating environment is getting more chaotic. This year’s abrupt easing of U.S.-China tariffs—paired with persistent disruption in India and the Middle East—has forced retailers into shorter planning cycles and higher-stakes inventory bets.

“Now that tariffs have been lowered, we’re expecting a burst of pent-up cargo starting in two or three weeks,” said Mike Short, President of Global Forwarding at C.H. Robinson, in a written response to The Supply Chainer. “Customers that had cargo stored at origin are ready to ship. Others are cutting purchase orders this week and asking suppliers to produce as quickly as possible to get their goods out in the 90-day window.”

That’s left transportation providers scrambling to reposition capacity. According to Short, 20–30% of vessel capacity on the Asia–U.S. West Coast lane had been removed after April’s tariff spike. “Now it’ll take two to four weeks to bring them back—and in the meantime, spot rates are jumping.” For supply chain professionals on the retail side, that means this year’s ocean peak season could arrive early, and unpredictably.

A New Definition of Agility

What does agility really mean in 2025? It’s no longer just about faster fulfillment or last-mile reach. It’s about operationalizing flexibility: knowing where to move inventory, when to push orders, and how to act on exception data without waiting for a fire drill.

AI on its own isn’t a silver bullet—but it is, increasingly, the system of action that helps organizations scale the judgment of their best logistics people, without relying solely on tribal knowledge.

As Jayakrishnan put it: “You shouldn’t need more hires just to drive new initiatives. We’re designing AI that empowers the team you already have.”

For now, the competitive edge is shifting away from warehouse square footage or raw inventory depth—and toward something more invisible but more powerful: decision speed.