Solving Distribution Challenges in 2026 | FORTNA

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Cracking the Code: Solving Distribution Challenges in 2026

Discover how to solve the top distribution challenges of 2026 with smarter layouts, automation, proactive maintenance strategies and more.

by Cheryl Falk

As the final days of 2025 come to an end and 2026 is on the horizon, it is a perfect time to evaluate your operations and consider innovative solutions that can help meet your distribution challenges in the new year.

Many of the same challenges that existed in 2025 are still prevailing headwinds in the new year: labour availability and costs, operational efficiency and performance, asset utilisation, and downtime. Additionally, SKU proliferation, changing customer demands and geopolitical instability are proving that supply chain leaders can no longer rely on traditional methods to remain competitive.

While these challenges can be daunting and create obstacles to efficiency, proven solutions can be utilised in 2026 to help transform your distribution business into a flexible and scalable operation.

Challenge # 1 – Labour availability and costs

Managing labour and its costs in distribution centres will again be a challenge in 2026. This has been the primary issue for distribution managers for the past ten years. Luckily, the marketplace has responded with a wide range of solutions primarily geared toward relieving an operation’s dependency on labour and related costs.

It is important to understand that every solution is different in scope and size, and what might work for the retail market might not work for the food and beverage market. Knowing your business requirements and objectives can help you evaluate solutions and growth opportunities.

Finding the right balance with the right partner

The right partner will analyse your operations, develop a short- and long-term automation plan and assist you with choosing the right balance of automated and manual processes required to solve your labour challenges. Understanding the technologies that can be leveraged quickly and into the future can help an organisation strategically plan and integrate automation more effectively. A true partner should collaborate with you to mitigate risks instead of adding complexities. Robotics, scanning devices, inventory management and software are some of the solutions that FORTNA considers to help curb labour costs and boost productivity.

Automated Storage and Retrieval Systems (AS/RS) can optimize brownfield warehouses by improving productivity, efficiency and inventory management

Optimise your layout

By analysing the warehouse floor plan and space, an operation can make simple adjustments to increase fulfillment speed or extensive changes to the layout and processes to improve inventory management, increase capacity and maximise current assets.

For example, a leading retailer was struggling to keep pace with rising order volumes. Rather than jumping straight to an automated system, they started with a complete operational design. After assessing the facility, the team mapped existing workflows, identified bottlenecks and developed a high-efficiency fulfillment strategy. Shift planning was optimised, and growth modelling helped forecast future needs and inventory levels, ensuring any automation investment would support long-term goals. This in-depth layout analysis unlocked new levels of operational efficiency and scalability.

Rethinking your warehouse layout and processes can significantly increase throughput, reduce labour costs and help eliminate the need for new or seasonal workers.

Warehouse with digital display of logistics optimization - FORTNA

Proven automation solutions

While the marketplace is always looking for brand-new, shiny robots or the latest artificial intelligence (AI) products, several proven automation solutions can transform your operations.

  • Warehouse-ready solutions like AutoStore and Geekplus help an operation manage inventory, and goods-to-person stations can drastically reduce labour costs and raise productivity.
  • End-of-line packaging automation creates right-sized boxes or paper mailers, reducing labour and material costs. A sustainable solution, the box or mailer is custom-made to fit the order, which can dramatically reduce waste and shipping costs as orders take up less room in the delivery vehicles.
  • Warehouse software helps organisations optimise their inventory, order fulfillment and shipping and overall orchestration of their supply chain network. A partner like FORTNA can assist in vetting and selecting the right software solution for you now and into the future.

Challenge #2 – Raising productivity

Along with labour challenges, getting the most out of your current operations is a daily challenge for distribution businesses. Finding the right combination of operational processes and asset utilisation can help you design the optimal flow of products in and out of your facility. Order fulfillment is one area of an operation that can be improved, and tangible results can be seen quickly.

Picking methodologies

From single-order picking to zone and wave picking, several different methodologies and approaches to order fulfillment exist. Moving to a new picking and packing process can lead to faster order times and increased throughput.

Slotting software

The strategic placing of products in prime areas for picking based on velocity and items typically ordered together can reduce the number of steps a worker takes throughout the day while speeding up order times.

Challenge #3 – Minimising downtime

No matter how optimised your distribution system is, if it experiences unplanned disruptions and downtime, it can cost an organisation productivity, customer satisfaction and overtime labour costs. In most cases, downtime is due to neglect in maintenance processes or a lack of adequate spare parts. While optimising your operation for peak performance, don’t forget to optimise your maintenance operations.

Proactive vs. reactive maintenance

When analysing your maintenance operation, are they actively performing preventative maintenance activities or consistently responding to emergencies? Understanding maintenance cycles, equipment wear and tear, and the root cause of system failures can distinguish between a successful and disappointing 2026. Here are a few proactive ways to address your maintenance programme.

  • Assessments – Having a third party thoroughly assess your operations can help you identify potential trouble spots and opportunities for improvement, so you can mitigate issues before they create a downtime event.
  • Parts – Many downtime events are triggered by not having a spare part in stock to fix the failed one; this can extend the time your system is not running. Working with a single parts partner can ensure you have all your critical items in stock, and they will work with the vendors on lead times, warranties and obsolescence.
  • CMMS software – A computerised maintenance management system (CMMS) is software designed to streamline maintenance operations. Work order management, spare parts inventory and asset tracking are just a few benefits that a CMMS can deliver. This software can also deliver reporting and analytics on activities, costs and performance, aiding in decision-making and developing future strategies.

FORTNA Can Help

By leveraging automation, optimising layouts and implementing proactive maintenance practices, organisations can enhance their operational performance and better meet the market’s demands. FORTNA solutions and expertise in automation, integration and lifecycle management can provide the tailored support you need to navigate these complexities effectively. Our team of experts can assist you in developing a comprehensive strategy that aligns with your unique business needs, ensuring you are well-equipped to thrive in the new year. Visit

About the author

photo-of-cheryl-falk-senior-vice-president-marketing-and-business-development

Cheryl Falk

Sr. Vice President, Marketing & Business Development

Cheryl Falk is Senior Vice President, Marketing & Business Development at FORTNA. She leads strategic initiatives that drive global revenue growth in a dynamic and complex business landscape. Leveraging a keen understanding of next generation technologies and emerging trends, she engages C-level executives with thought leadership to assist in achieving business outcomes.