Following the Signals

UPS prioritizes margin. Walmart doubles down on automation. Lands' End learns how painful a WMS cutover can be.

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Slotted Admin
June 25, 2026

Following the Signals

UPS prioritizes margin. Walmart doubles down on automation. Lands' End learns how painful a WMS cutover can be.

One of the advantages large operators have is scale. One of the advantages everyone else has is being able to watch what works and what doesn't before making the same investment themselves.

Over the last few weeks we've seen several examples of that.

UPS continues walking away from lower-margin volume in favor of higher-value business. Walmart is pushing deeper into automation across its network. Lands' End spent the quarter dealing with the fallout of a warehouse system implementation that disrupted shipments and revenue.

Different companies. Different challenges. Similar lesson.

The biggest operators in the industry are constantly showing where they're placing bets, where they're finding friction, and where they're getting burned.

For mid-market and SMB fulfillment providers, those are useful signals. You may not have Walmart's budget or UPS's network, but the reasons behind the decisions are often just as relevant to your operation as they are to theirs.

WHAT’S TRENDING

Industry leaders continue prioritizing margin over volume

📦️ UPS is investing $48M into temperature-controlled facilities as it continues reducing Amazon volume under its "better not bigger" strategy.

📦️ The company sees healthcare logistics as a major growth opportunity and is actively reshaping its network around higher-margin freight.

For providers, it's another reminder that volume alone doesn't solve problems. The largest operators in the industry continue focusing on network fit, profitability, and long-term economics.

Big players keep investing in automation

Walmart is now more than halfway through retrofitting its regional distribution network with automation. Kimberly-Clark recently announced a $200M automated facility as part of its long-term productivity plan.

The conversation around automation has shifted. A few years ago it was innovation teams and pilot programs. Today it's network design, labor strategy, and capital planning.

For most providers, the question isn't whether automation belongs in the operation. It's where it creates enough value to justify the investment.

Technology rollouts still carry real operational risk

Lands' End reported a 10% decline in ecommerce revenue after a Manhattan WMS implementation created a week-long backlog across its distribution network.

Management expects some of the volume to recover, but it is another reminder that implementation plans matter just as much as software selection.

Every operator wants the benefits of a modern tech stack. Few want to live through the cutover.

Final-mile economics continue to evolve

📦️ Teamsters are challenging UPS over its use of Roadie for certain deliveries.

📦️ FedEx raised international fuel-related costs through surcharge changes that effectively increase export shipping costs.

📦️ Carriers continue looking for ways to balance service expectations, labor costs, and profitability.

For brands and providers, the last mile remains one of the most dynamic parts of the supply chain.

PARTNER HIGHLIGHT

Highlight: 2026 IWLA Fulfillment Forum

When & Where: Aug. 6 & 7 | Schaumburg, Illinois

The Vibe: A working room of warehouse and fulfillment operators, not a vendor expo floor.

ROI Hook: Benchmark your labor, automation, and pricing decisions against peers before you commit capital to them.

Who to Send: Your head of operations or GM, plus whoever owns operational strategy.

Why it's right for SMB 3PLs: The Forum skews toward mid-market warehousing and fulfillment providers facing the exact pressures in this issue, including carrier reshuffling, automation payback, and labor cost. The sessions are practitioner-led, so the takeaways tend to be things you can apply to a real P&L rather than conceptual or theoretical fluff.

Pro Tip: If you're a first timer, take advantage of the opening reception and structured breaks. The event may feel "cliquey" at first but it's because the are real relationships built over years of shared experience and participation in IWLA. The best way to maximize your ROI is to invest in the relationship with people at this event.

OPPORTUNITIES IN FULFILLMENT

Sr Customer Account Manager @ Kenco | Tennessee

Territory Sales Manager @ DHL | New Jersey

Director Of Operations @ Geodis | California

Regional Sales Manager @ RR Donnelley | New York